How does the federal minimum wage rate effect all USA wage rates?

Oct 2009
510
88
Cliffside Park, NJ
How does the federal minimum wage rate effect all USA wage rates?

Labor has some worth. The minimum wage rate is applicable to the least desirable employee performing the least challenging task. If there was no definite, legally enforced federal minimum wage rate, there would be indefinite U.S. market's minimum wage rates. X = the theoretical indefinite market rate; (it's never negative).

$7.25/per Hr. = USA's current definite federal minimum wage rate.
($7.25 -X)/per Hr. = Difference between the federal and the theoretical market minimum wage rates.

For examples:
If the theoretical indefinite U.S. market's minimum wage rate is $5/per Hr,
If X = $5/per Hr; ($7.25 -X)/per Hr. = is the difference between the federal and market's minimum rates.
Difference between the federal and market's minimum rates = $2.25
What's now a $20 per Hr rate was increased from $17.75 indefinite market-determined rate.

If X = $2/ per Hr., the indefinite minimum wage rate would be $2/per Hr.
What's now a $20 per Hr rate was increased from $14.75 indefinite market-determined rate.

When the purchasing power of the federal minimum wage rate changes, the purchasing powers of all other wage rates change to the same extent, but the proportions of their changes differ.
The purchasing power of the federal minimum wage is of maximum benefit to the working poor, and of some, but extremely lesser benefit to higher wage rates. The federal minimum wage rate reduces USA's incidences and extents of poverty among USA's working-poor.

Respectfully, Supposn
 
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Dec 2015
17,920
17,020
Arizona
The chances of passing a $15 minimum wage in the GOP-controlled Senate are slim to none. Even so, the bill’s passage in the House is a major step forward for low-income families.
It had been more than 10 years since lawmakers raised the federal minimum wage, the longest period in history that it’s stayed stagnant.

The current $7.25 minimum hourly rate was set in 2009, right in the middle of the Great Recession. Since then, America’s lowest-paid workers have lost about $3000/yr. when you consider the rising cost of living. The law would raise the federal minimum wage to $15 an hour by 2024. The law would also tie future changes to changes in median workers’ pay. So if middle-class wages go up — or down — so would the minimum wage.

This bill was sponsored by 200 Democrats which means one thing. The GOP Senate may not even bring it to the floor.
The GOP: The party who LOVES America but hates Americans--particularly the poorest among us. Their fealty is to corporations.
 
Oct 2009
510
88
Cliffside Park, NJ
]
The chances of passing a $15 minimum wage in the GOP-controlled Senate are slim to none. Even so, the bill’s passage in the House is a major step forward for low-income families.
It had been more than 10 years since lawmakers raised the federal minimum wage, the longest period in history that it’s stayed stagnant. ...
... This bill was sponsored by 200 Democrats which means one thing. The GOP Senate may not even bring it to the floor.
The GOP: The party who LOVES America but hates Americans--particularly the poorest among us. Their fealty is to corporations.
Clara007, in 2020 Democrats will stand on a platform that includes Congressman's Scott's 2019 HR582 bill. From that advantageous point, they'll attack Republicans and they will eventually, (hopefully in 2021), pass a good minimum wage rate bill.

Respectfully, Supposn
 
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May 2018
4,448
3,420
USA
Minimum wage hikes result in wage hikes for pretty much everybody. That's why the GOP opposes it under all circumstances. If the Republicans had their way we'd be living in "The Gilded Age" where robber barons ruled the world and the rest of us slaved away for $1 a day. That's why it cracks me up to see all those welfare-loving Trumpanzees voting Republican...they'd starve to death if the GOP got their wishes (and on this issue, I have to agree, the Republicans would make the world a better place if they starved off the welfare Republicans).
 
Oct 2009
510
88
Cliffside Park, NJ
GluteusMaximus, CEO salary increases may or may not be symptoms of an improved economy; minimum wage rate's increased purchasing power actually improves an economy.
Respectfully, Supposn
 

Marcus Livius

Former Staff
Sep 2017
2,466
1,222
Hell
While I have no issue with trying to increase wages to livable levels, I think it should be kept at a State or even County level based on Cost Of Living. A one size fit all for the entire country is not fair. $15 is a very decent wage is some places, but still chump change in others. San Francisco already has $15 minimum, and no one can live decently on that. You'll be hard pressed to even find a studio apartment here on that hourly rate after taxes unless you have an insane amount of overtime.

Government assistance programs should also be adjusted by local COL. Federal poverty guidelines are ridiculous and do not work in SF when to getting food stamps, ALL combined income (that includes interest, capital gain, etc) of a couple has to be less than $2200/mo BEFORE taxes.
 
Dec 2018
3,941
1,128
New England
I think the idea of a federally mandated minimum wage is just nuts. Does it make sense to mandate the same minimum wage level for workers in NYC as it does, say, Topeka? Or rural Wyoming? It's asinine.

And its negative impact will be felt the most severely among the poorest in those low cost areas. Let's suppose you run a small business in Iowa. Let's also suppose 20 of your workers are full-time minimum wage employees. Each of them makes $15,500 per year ($7.75 x 40 x 50). Jump Iowa's min wage to $15/hr and those workers now make $29,000/yr. Times 20 workers that's a $290,000 hit to that business's bottom line.

Seriously, how much do you think a small business owner in Iowa makes? Think of a reasonable number and then ask yourself if you believe that owner would be willing to see their take-home pay reduced by nearly $300k or whether they'd make serious changes.
 
Oct 2009
510
88
Cliffside Park, NJ
GluteusMaximus, CEO salary increases may or may not be symptoms of an improved economy; minimum wage rate's increased purchasing power actually improves an economy.
Respectfully, Supposn
While I have no issue with trying to increase wages to livable levels, I think it should be kept at a State or even County level based on Cost Of Living. A one size fit all for the entire country is not fair. $15 is a very decent wage is some places, but still chump change in others. San Francisco already has $15 minimum, and no one can live decently on that. You'll be hard pressed to even find a studio apartment here on that hourly rate after taxes unless you have an insane amount of overtime. ...
Marcus Livius, the federal minimum wage rate is a minimum rate. States may, and many have enacted a higher minimum within their own jurisdiction.

Delegates to the 1787 Constitutional Convention determined a
federal law was necessary for reducing the economic harm that a U.S. State may deliberately or inadvertently inflict upon any other State, particularly an adjoining state.
The constitution's commerce clause was enabled by delegates from wealthier states agreeing to sacrifice their own states' advantages. Without such compromises, the constitution would not have been ratified and our nation might not have survived to this day. That compromise is no less needed now, as it was in 1787.


Respectfully, Supposn
 
Oct 2009
510
88
Cliffside Park, NJ
While I have no issue with trying to increase wages to livable levels, I think it should be kept at a State or even County level based on Cost Of Living. A one size fit all for the entire country is not fair. $15 is a very decent wage is some places, but still chump change in others. San Francisco already has $15 minimum, and no one can live decently on that. You'll be hard pressed to even find a studio apartment here on that hourly rate after taxes unless you have an insane amount of overtime.

Government assistance programs should also be adjusted by local COL. Federal poverty guidelines are ridiculous and do not work in SF when to getting food stamps, ALL combined income (that includes interest, capital gain, etc) of a couple has to be less than $2200/mo BEFORE taxes.
Marcus Livius, other than Supplemental Security Income, (SSI) benefits, I can't think of any (comparatively substantial) federal public assistance programs; but there are public assistance programs that are partially funded by the federal government.

State and local governments regulate and enforce their individual programs that comply with federal requirements. There's states' unemployment, temporary and long term disability, workman's compensation, Medicaid, and child health insurance plans and programs. Those programs would not exist in every one of our 50 states if there was not federal statutes and federal partial funding to motivate state participations. Respectfully, Supposn
 

Marcus Livius

Former Staff
Sep 2017
2,466
1,222
Hell
Marcus Livius, the federal minimum wage rate is a minimum rate. States may, and many have enacted a higher minimum within their own jurisdiction.

Delegates to the 1787 Constitutional Convention determined a federal law was necessary for reducing the economic harm that a U.S. State may deliberately or inadvertently inflict upon any other State, particularly an adjoining state.
The constitution's commerce clause was enabled by delegates from wealthier states agreeing to sacrifice their own states' advantages. Without such compromises, the constitution would not have been ratified and our nation might not have survived to this day. That compromise is no less needed now, as it was in 1787.

Respectfully, Supposn
What I am saying is that in some localities, a $15 minimum wage may not be necessary as a living wage and perhaps be even be detrimental to employment for those caught in lower skilled or just traditionally lower paid jobs. While, at the same time, the federal law will have no effect for localities with responsible government that already has seen that NO ONE in that city/county can survive on $5.15/hr and has already done something about it.

Think about it. If federal minimum wage became $15 an hour, it will triple the salary for someone in some shit town in Mississippi - if he can retain his job and not receive reductions of scheduled hours of work - but will do nothing for someone in San Francisco where the minimum wage is ALREADY at $15/hr.

A one size fit all federal min wage is stupid and unworkable. What they should do is require States to have minimum living wages based on local COL which is more in line with supply and demand.