On Wed, 5 Aug 2015 13:28:16 -0700 (PDT), "
wrote:

On Wednesday, August 5, 2015 at 2:34:13 PM UTC-4, Ed Huntress wrote:


You need to figure out how the relative proportions of income came about.

Supply and demand.

And then figure out why raising the minimum wage will not affect the relative proportions of incomes.

Within the ranges we're talking about, relative proportions don't
matter. The gaps are too large for it to matter.

But you can not explain why the gaps are too large to matter.

You didn't ask. d8-)

In actual fact you are wrong.

You did not explain why you think I'm wrong. Tell us what kind of
misfit, making over $40/hr., is going to complain because people at
the bottom got a $5 raise and he just got...a $5 raise.




Increasing the minimum wage by law will have no effect as long as the minimum wage as dictated by law is less than the minimum wage dictated by supply and demand. But raising it above the minimum dictated by supply and demand will increase inflation.

Show us what has happened after minimum wages were increased in the
past.

Show us when the minimum wage was raised above the minimum wage dictated by supply and demand.

There are 3.3 million people making minimum wage, and they are the
ones that will get the raise. What do you think the "minimum wage
dictated by supply and demand" is?

Now do that for when the demand for minimum wage workers is declining.

What would that show you?

And finally for when the economy is doing so poorly.

What is "so poorly"? You mean like now, when GDP is at an all-time
high?


Here, I'll help you out. Wages are scaled to show the relationship:

https://research.stlouisfed.org/fred...raph_id=249218

You have a period of inflation, and then a minimum-wage hike to try to
keep up. Inflation is pretty steady; it does not react to wage hikes.
Consistently.

So a raise in the Federal rate to $10 / hour is no big deal. I can not find anyone to hire for $10 now. But raising it to $15 will have an effect. Hours will be cut, jobs will not be created, jobs will be lost, unemployment costs will rise, jobs will go overseas, jobs will be automated.

Here, let's add employment to see how that works out in real life
(wages and employment are scaled to show the relationships):

https://research.stlouisfed.org/fred...0&category_id=

Employment follows recessions (the gray bars), not minimum wage hikes.


Think of what an increase of the minimum wage to $30 / hour would do.

Too big of a shock.

Now think how a raise to $15 / hour will have the same type of effect but not as large an effect.

Much less of a shock. Outcome unknown.

And finally think of the effect that eliminating the Federal minimum wage would have. Almost none.

According to what you've said, it should increase employment.

I never said that. I do say that when the minimum wage dictated by supply and demand is higher than the minimum wage dictated by law, then the wage dictated by law has little or no effect.

So what is the minimum wage "dictacted by supply and demand"?
Remember, there are 3.3 million making the minimum wage *dictated by
law*. Should they be making more?

--
Ed Huntress