Canada Kicks Ass
The Cost of Poverty

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andyt @ Mon May 09, 2011 1:14 pm

BartSimpson BartSimpson:
andyt andyt:
How is it you see min wage as such a huge driver of prices.


George Stigler, who won the Nobel Prize for Economics in 1982, vastly substantiated the effects of the minimum wage as summarized:

$1:
Employment may fall more than in proportion to the wage increase, thereby reducing overall earnings;

As uncovered sectors of the economy absorb workers released from the covered sectors, the decrease in wages in the uncovered sectors may exceed the increase in wages in the covered ones;

The impact of the minimum wage on family income distribution may be negative unless the fewer but better jobs are allocated to members of needy families rather than to, for example, teenagers from families not in poverty;

Forbidding employers to pay less than a legal minimum is equivalent to forbidding workers to sell their labour for less than the minimum wage. The legal restriction that employers cannot pay less than a legislated wage is equivalent to the legal restriction that workers cannot work at all in the protected sector unless they can find employers willing to hire them at that wage.


His last point is something I've often pointed out and it's the fact that if you set your minimum wage at, say, $10 an hour, that not everyone is worth $10 an hour and they will become permanently unemployable. Also, certain classes of employment are not worth that wage and those classes of employment (and work experience and opportunity) disappear due to economic pressures.

Many immigrants to North America in the 1700's and 1800's were employed as household servants for middle class and wealthier people. Such jobs no longer exist, for the most part, due to minimum wage laws and etc. that extinguished those jobs. Maybe you're happy about that, I don't know. Myself, what I see is that these opportunities for unskilled immigrants no longer exist.

Now, on the other side of things, while well-meaning folks like yourself prattle on about minimum wage laws for 'the poor' I've yet to meet one such as yourself who wants our soldiers and sailors to be paid at least minimum wage.

Currently, the CF pays a private $430.05 per week. Based on their typical 50 hour work week that's $8.60 an hour with no overtime. In rear echelon support areas where non-combat troops are routinely putting in seven, 16 hour days per week they're still getting just $430.05 per week.

Howzabout getting the troops covered under that minimum wage of yours?


I"m very surprised, since the salaries I've seen in quoted in the newspaper are much higher than that. Now, those soldiers also get room and board, no? What's that worth? I don't think you can apply overtime standards to soldiers. But, if it were up to me, soldiers would be paid a decent wage. I really wonder if your figures are accurate. But if they are, pay em more. I've heard about US soldier's families living in poverty, on food stamps etc. That's not right. But by your logic, that's all that they are worth, since they enlisted freely and knew what they were getting into. In fact according to your logic, they should be paid even less. That would give all those immigrants you're worried about a chance at a job. I mean why do they have to be citizens - heck make citizenship part of the deal and you can probably get them to work for nothing. In fact don't they already have a program like that? And now that I think of it, I knew a Canadian, US resident, who joined the Marines. Seems they do take non-citzens. If fact they were going to draft his ass into the army if he didn't join up.

   



BartSimpson @ Mon May 09, 2011 1:14 pm

Now something I will support is prohibiting teenagers from working in the restaurant industry where they're routinely abused by employers. That would have the effect of forcing those employers to raise their wages in order to attract adults to their jobs and it helps keep the kids in school.

   



BartSimpson @ Mon May 09, 2011 1:17 pm

andyt andyt:
I"m very surprised, since the salaries I've seen in quoted in the newspaper are much higher than that. Now, those soldiers also get room and board, no? What's that worth? I don't think you can apply overtime standards to soldiers. But, if it were up to me, soldiers would be paid a decent wage. I really wonder if your figures are accurate. But if they are, pay em more.


If the expenses are incurred in the line of employment then room and board must be provided by the employers. So the one thing the government has right is providing room and board to the troops.

My figures are from the CF appropriations April 2010. It may have gone up since then but I have not heard of it if it has.

   



andyt @ Mon May 09, 2011 1:18 pm

BartSimpson BartSimpson:
andyt andyt:
I"m very surprised, since the salaries I've seen in quoted in the newspaper are much higher than that. Now, those soldiers also get room and board, no? What's that worth? I don't think you can apply overtime standards to soldiers. But, if it were up to me, soldiers would be paid a decent wage. I really wonder if your figures are accurate. But if they are, pay em more.


If the expenses are incurred in the line of employment then room and board must be provided by the employers. So the one thing the government has right is providing room and board to the troops.

My figures are from the CF appropriations April 2010. It may have gone up since then but I have not heard of it if it has.


See the rest of my post.

   



BartSimpson @ Mon May 09, 2011 1:22 pm

I did.

I had an Iraqi corporal in my unit who became a US citizen after he put in his time. And then, much to his credit, he re-enlisted to say 'Thank you' to the USA.

   



cougar @ Mon May 09, 2011 1:27 pm

$1:
I would rather pay in a way that has the low income earners earning their own money, instead of using government subsidies.


It is about redistribution again; those on top giving some of their wealth to their employees instead of keeping it to themselves.

But since everyone is allowed to do whatever they find fit in business to survive and make even more money, the moment the minimum wage is let's say $20/hour, the jobs will go down to Asia, Africa or Latin America.

With the open economy the Canadian labour force is competing with the mentioned geographical regions and it is obvious noone here can survive on their hourly rates ($1/hour or whatever). The only thing in our favour is the distance (transportation and spoilage costs, on time delivery problems, control over capital etc)

Bart, I cvannot survive on my existing wealth. If you decide to limit what I have further, it means I will be gone right away instead of a few months from now. Then you will have one less person to argue with in this forum :D

   



andyt @ Mon May 09, 2011 1:30 pm

BartSimpson BartSimpson:
I did.

I had an Iraqi corporal in my unit who became a US citizen after he put in his time. And then, much to his credit, he re-enlisted to say 'Thank you' to the USA.


There you go then. The US can solve it's recruitment problems and lower the military budget at the same time. Just offer any potential immigrant who can pass the induction requirements (what are they again, grade 10, not too severe of a criminal record?) citizenship in 4 years? if they enlist and draw no pay, just room and board and uniforms.

   



andyt @ Mon May 09, 2011 1:33 pm

cougar cougar:

But since everyone is allowed to do whatever they find fit in business to survive and make even more money, the moment the minimum wage is let's say $20/hour, the jobs will go down to Asia, Africa or Latin America.



All Tims and McD's will dissappear from Canada? We'll have no more janitors and security guards? By definition, most service jobs can't move to Asia because the service has to be performed on site.

As for manufacturing, they've already moved to Asia, and they were paying much more than minimum wage when they were here. Min wage didn't drive them out.

   



BartSimpson @ Mon May 09, 2011 1:36 pm

cougar cougar:
Bart, I cannot survive on my existing wealth.


Ideally, you should survive on your income and acquire some wealth for your retirement years. <-- not a criticism, just clarifying your terms is all. :wink:

cougar cougar:
If you decide to limit what I have further, it means I will be gone right away instead of a few months from now. Then you will have one less person to argue with in this forum :D


I'm not proposing to limit your wealth, you are. :idea:

My point is that people like yourself who champion collectivist economics are typically the first victims of it when it's implemented. Communists worldwide rail at the wealth and incomes of others but when they finally attain power the first thing they do is hustle the poor onto collective farms where they starve to death working as virtual slaves for their new master; The State.

Instead of you robbing someone else of the fruits of their efforts, why not look at alternatives to improve your lot?

If I may ask, what do you do for a living?

   



Lemmy @ Mon May 09, 2011 2:35 pm

andyt andyt:
So if an employer wants to pay $6 an hour, you're OK with that, and you don't see any downside to our society from that? Do you think the articles I posted that poverty costs us all (and that's just in dollar and cents terms) are all wrong?

Putting words in others' mouths again, I see. :roll:

andyt andyt:
I know none of the people quoted are MIT trained economists and all, but are you really saying they all have their heads up their ass?

I haven't said a thing. You're doing all the talking for the both of us.

   



BartSimpson @ Mon May 09, 2011 2:49 pm

andyt andyt:
So if an employer wants to pay $6 an hour, you're OK with that, and you don't see any downside to our society from that?


I'd like to field this one for Lemmy.

If an employer offers $6 an hour for a job then if a willing person accepts the proposition and then the employer honors all other labor laws, what's wrong with that?

The exchange of labor in the free market is on par with any other commodity meaning that what you need is a willing seller and a willing buyer.

With a minimum wage law you're restricting BOTH parties.

You're saying that it's illegal for someone to pay me $6 an hour and you're also saying that I'm prohibited from marketing myself at $6 an hour.

I think that's wrong.

In some cases, though, your minimum wage is irrelevant due to local market conditions.

For instance, San Francisco has it's own minimum wage of $9.92 an hour that is really just a masturbatory feel-good exercise for the economic justice crowd.

Why?

Because the labor market in San Francisco is such that if an employer is not paying at least $15 an hour they won't get any applicants.

The market will pay what is the right wage without manipulation from pointy-headed leftists and the proof of this is in how many markets that obviate the minimum wage in every jurisdiction that has one.

Even in Sacramento you're hard pressed to find a fast food job that won't start people at $10 an hour - even in this labor market.

   



Gunnair @ Mon May 09, 2011 3:18 pm

Bruce_the_vii Bruce_the_vii:
That ah boy, you'll go far.


So far I have. Done it by hard work and education.

Try it.

   



cougar @ Mon May 09, 2011 3:47 pm

andyt andyt:
All Tims and McD's will dissappear from Canada? We'll have no more janitors and security guards? By definition, most service jobs can't move to Asia because the service has to be performed on site.

As for manufacturing, they've already moved to Asia, and they were paying much more than minimum wage when they were here. Min wage didn't drive them out.


Andy, of course not all service jobs can be outsourced but many have been. DELL support guys call you from India nowadays. I would guess a lot of programming is also done in India. The manufacturing jobs that were outsourced were not minimum wage jobs because of the unions and the long experience of many employees in these companies.

I have no idea what portion of Canadian tax revenue comes from operations overseas. If a big corporation makes the money in lets say the Philipines and the taxes are paid in Canada, then obviously using this tax money for social programs in Canada will be like getting the rest of the World work for your citizens.

Bart, I no longer know what I do for a living. I was successful in everything I pursued at university and never failed in my former jobs. Now I am out of work and scared shitless about my and my family's future. Period.

   



Brenda @ Mon May 09, 2011 3:56 pm

cougar cougar:
Bart, I no longer know what I do for a living. I was successful in everything I pursued at university and never failed in my former jobs. Now I am out of work and scared shitless about my and my family's future. Period.

You can be such a hard worker, and so damned educated, but if the economy sucks and no one spends any money, business are not hiring but firing. It is that simple.

I feel for you, and I wish you all the best.

(btw, being told to be "over qualified" as reason for not being hired at a minimum wage job is a nice one that I have heard a couple of times... Gotta love it.)

   



OnTheIce @ Mon May 09, 2011 4:02 pm

cougar cougar:
andyt andyt:
All Tims and McD's will dissappear from Canada? We'll have no more janitors and security guards? By definition, most service jobs can't move to Asia because the service has to be performed on site.

As for manufacturing, they've already moved to Asia, and they were paying much more than minimum wage when they were here. Min wage didn't drive them out.


Andy, of course not all service jobs can be outsourced but many have been. DELL support guys call you from India nowadays. I would guess a lot of programming is also done in India. The manufacturing jobs that were outsourced were not minimum wage jobs because of the unions and the long experience of many employees in these companies.

I have no idea what portion of Canadian tax revenue comes from operations overseas. If a big corporation makes the money in lets say the Philipines and the taxes are paid in Canada, then obviously using this tax money for social programs in Canada will be like getting the rest of the World work for your citizens.

Bart, I no longer know what I do for a living. I was successful in everything I pursued at university and never failed in my former jobs. Now I am out of work and scared shitless about my and my family's future. Period.


Bell Canada outsources their call centre to India.

   



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