Talking Regional Price Adjustments and Min Wages Over at the NYT

June 27th, 2014 at 8:10 am

Check it out.  BTW, this is based on some recent work by the great and prolific economist Arin Dube, whose work is very much worth following.

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4 comments in reply to "Talking Regional Price Adjustments and Min Wages Over at the NYT"

  1. Tyler says:

    America has both billionaires and people who live on $2 a day. We need radical, FDR-inspired change. The federal minimum wage should be raised to $15 immediately. Democrats would campaign on this if they had a clue.

  2. D. C. Sessions says:

    Your proposal to peg the minimum wage to about half of the median wage would be a move in the right direction, but would be vulnerable to the larger problem of the dropping median wage.

    Why not aim for the same number today (already a big improvement, no question) but tie it to the mean rather than median income? That way, it becomes at least a minor force against rising inequality.

    In the same direction, I’ve proposed pegging income tax brackets to the median rather than the mean or to CPI. Same principle.

  3. Fred Donaldson says:

    If the elite maintain it’s good to have a low minimum wage, we should just adopt a linked maximum inheritance $ amount, and then so many minds at the top will change. Minimum wage and maximum salary tied together also has a certain egalitarian ring to it.

    Rather than tie minimum wage to the lousy living conditions in some states, why not use tiers – the teens get less, 18-21 – more, and 21 and over – much more. A 35-year-old waitress, who supports two children for decades, should receive a higher minimum wage than a 16-year-old on a summer gig. Other nations find that this works better, but their minimum wage for adults might be more than $15 an hour, and less than $10 for teens. Every wage being the same rate is not equality, but ignorance of what wages mean to average people – often their only barrier to homelessness and misery. In other cases, work is something to do for spending money or to break the monotony of investing in futures.. Capitalism shouldn’t be blind to the human race and individual needs, although today we seem to only see workers as units of profit production.

    On the other hand, if an employer won’t pay a living wage, why not just bill them for the food stamps, heating credits, EITC and other benefits supplied to their workers because of management’s greed?

    National minimum wage levels equalize business playing fields, keeping employers from moving to the lowest paying location to employ people, pitting worker versus worker in a society that discourages worker protest and organization that would offset much of our inequality.