Since employers contribute money towards insurance, that suggests that companies would rather use loopholes to avoid compensating their employees. So if there were no minimum wage, employers would have a field day.

That is a real issue, one that should also be addressed!!

Affordable healthcare for all - Independent contractors, for example real estate agents, are dependent on irregular earnings, similarly many in the arts - actors, musicians, are mostly in similar positions (I'm not sure if organizations like SAG offer/provide any help here, but suspect vast majority haven't got more security in terns of healthcare than than the independent RE agent.)

Dude, you seem to think it's just a matter of greed on the part of the Employer. If it's really that easy, if you really know so very much about it. Why did you spend so very long working for someone else? So far as that goes. If you are such a valuable Worker. How did you manage to ONLY make minimum wage for 6 whole years? With your obviously vast knowledge and skill, not to mention experience. Why aren't you running your own business and employing who knows how many hundreds, even thousands of people while paying them what they are worth?

Obama care did make a lot of people's full time job turn part time.

No, your wage should be determined by your skill. Abolish the minimum wage.

Have you seen an inflation, at the last decade?

Inflation is measured as being neglible, because while the price of basic goods and services continue to go up, the price of superficial and what were once considered luxury goods go down.

The problem with that is it breaks the markets ability to signal prices. What if the reason why your wage can't keep up with inflation is because there is less demand for the product of your work? By keeping the wage where it is, other workers with your job that have opportunities outside of it will move to other jobs that produce products that are more in demand.

@@bradsubramaniam4429 what a horribly thought out opinion

But $7.25/hr is still too little everywhere

stating the obvious

*Rich* U.S liberal socialists: "we want more money" Companies: "No" *moves to Mexico* Actual minimum wage workers: "spare change please"

What if the federal minimum wage was the minimum needed in the cheapest geographical region. And then states/cities could choose make their minimum higher than the federal minimum. Would you support this system?

Try living off $15 an hour in New York. Wouldn’t it be better for a minimum wage to be too high rather than too low?we should be generous instead of stingy.

Apples dropping their prices wonder why 🤔

You know why? Because of scarcity. People have only two choices for phone: an iPhone or an Android. For labour, there are plenty to choose from. Same applied to jobs, companies are willing to pay higher for certain skills that are hard to find.

So what stops apple from charging $2000 per phone? Oh yeah when a price goes up people want less of it.

@@koboldhelper or 20,000 for that matter

@@HuyHoanghouston not just because of scarcity though- surely you'd have noticed that people like to show off their wealth with their apple products? or that people believe that by paying more t hey will get a better phone? i think thats a bigger reason because if apple dropped all of their prices they would be the more competitive of android and iphone, but the prestige people attach to iphones means that they dont really need to do that for people to buy it. sorry this was a bit convoluted! basically people are irrational and like to look rich

That's not the question that was asked. 😂

@@giogvarianashvili6309 it’s literally the title

This video was a wash. Reasonable minimum wages don't hurt workers and this whole conversation is business propaganda based on decades old thinking. Advanced economies around the world that have minimum wages that allow people to live well on one job are doing just fine.

It hurts whole economy.

@@flybefree, are you sure about that? There isn't a single place anywhere in the World where it is possible to live on the prevailing minimum wage without depending upon public assistance (welfare). Canada? nope. Netherlands? nope. Europe? nope. UK? nope. Australia? still nope.

@z zz Those things don't coexist very well. When you raise wages landlords will raise rents on their tenants, and then the price of goods also increase.

@@CalebFrezza Not true because rinse have been skyrocketing and the minimum wage is still the same

@@JohnJacobGarza Minimum wage isn't the only thing that affects the cost of living, it's just one thing. Rents could easily be skyrocketing because of other factors such as increased property taxes, utility fees/taxes, regulation compliance costs, skilled worker wages (especially in union areas where specialized labor costs are generally high), transportation costs to get goods to the area, etc.

@@CalebFrezza low interest on mortgages and savings have a much larger impact, its been low since the financial crisis and it means everyone can borrow more and offer more money for their houses. The 2 straightforward solutions are building more (increase supply) or slowly increase interest agian (reduce demand).

How? Decreasing minimum like decreasing the price of goods? It can also mean shrinking the economy

So unions should be setting minimum wages, not the state.

Real take away - because it is difficult to measure effect, do not touch it and inflation will make it irrelevant anyway. Case closed unfortunately

@@anthavio On difficulty of measuring effect: I agree with you. At least at the stage of policy framing, governments should be careful of measures whose impact may be ineffective at best and counter-productive at worst. On inflation wiping off the benefits of a wage hike: Two things: low interest rates have not really translated into high inflation (usual expectation). Moreover, inflation can be controlled by improving supply chains and enhancing production (easier said than done).

@@jonathanrajan3439 unions logic: "we want more money" Hostess (cupcake company): "we can't do that unless we close down some warehouses and factories" Unions after the wage increase: "my job got closed down"

@@jonathanrajan3439 try to be more "empirically" up to date with information please that study was done four years ago and Seattle, Washington is another prime example of job loss as a result of wage increase

I believe taxation policy should be revised in order to make impact, smth like tax on activity in particular industry, not a profit tax or VAT as they are easily avoided. f ex if amazon makes billions it should pay tripple of minimum wage. even dabate wouldnot be needed. why company can make loss on interest payments or bad contracts but not on workers.

But private sector unions in the US aren't really as powerful as they were decades ago and are the weakest they've been in years. I doubt workers have enough bargaining power to negotiate those market based salaries.Also the states are the ones that tend to set and increase minimum wage anyway

Two different countries with systems that won’t work with the conditions in the others. Try to think next time and get away from simplistic thinking.

@@Agtsmirnoff and that's why I said that our system wouldn't work in some countries so of course the US shouldn't all of a sudden adapt union-driven salaries. The problem though is that the US system doesn't work right now, neither for employers nor employees, so some reform has to be done. Other countries have better ways to mange state set minimum wage that could inspire a functioning US system.

if the wage set by union negotiation is basically what the market can/would do, than what is the point of a minimum wage instead of simply letting each employer and employee negotiate by themselves?

Agreed

Policy debates? You’re delusional if you think there are legitimate policy debates going on in DC.

No, that's not a debate

@@robroy7456 I think they jist meant these videos are more interesting than analyzing EVERY SINGLE word out of Trump's mouth

The video doesn't take into account price inflation, so it's very flawed.

What if their job is entry level? Like a dishwasher or a janitor?

@@sharvenkevin1699 That should not matter. Contributing to society is what is important, and entry level workers are the backbone to our country. Besides, nobody, regardless of education or work experience, should have to worry about keeping a roof over their head or food on the table. We are a first world country. How are they expected to climb up if they have to prioritize work over other things, such as furthering their education? They cant.

@@abcdefghijk6752 That seems horrible. So what is the solution?

@@sharvenkevin1699 mandate a living wage in the constitution.

@@scifirealism5943 But if you mandate a living wage, prices will still go up to deal with the rising costs of labour. Then, we'll be back at square one.

Simple as that

@@icemike1 yes it is

@@jlrob85 yes 👍

You’re only doing fine because China has been fueling your economy through natural resources purchases

Yep aussie here too works perfectly fine.. denmark, sweden and Switzerland also have high minimum wages. If you give money to those poorest they will spend it stimulating the economy and keeping others in jobs...

Made In America (for not enough to live on).

the economist = globalists

You evidence is your own antidotal experience or is there is a poll,study, survey you can cite because I think you’re making it up.

@@robroy7456 You must not have seen or read about the countless articles about America outsourcing the manufacturing of products. Most are interviews with someone of wealthy standing and cover many issues except the struggle of the working class. I forgot his name but there was recently someone who promised to bring back manufacturing and "made in America". He started a trade war that raised the price of these outsourced products and then gave tax cuts to the rich.

@@thaigerstyle that's not entirely true. There's small businesses starting up in America to try to keep manufacturing jobs alive in the country, corporate fat cats be wasted. Check out All American Clothing and Redland Cotton.

Most intelligent words I've heard

Crypto is the new gold

Two years from now you will look back and say I'm glad I started trading

People are afraid of investing because of the high rate of scam in the business

I wanted to trade Crypto but got discouraged by the fluctuations in price

The only things in his way are Joe Manchin and the filibuster. If he can get all 50 Democrats to vote to overturn the filibuster we can get a lot of really important legislation passed.

Ask all those Georgia voters about that $2000 check that went out immediately after they voted in those two democrat senators.......oh, wait......

It takes a fool to believe politician's rethoric...

@@SuperMovieLvr933 yeah you would like that wouldn't you rainbow warrior

@ facts

The standard of living in every class of people has rose including the lower class. The lower class is richer than the middle class a couple decades ago. By increasing wages you increase prices/costs.

Like in Europe, Canada, Australia and New Zealand

And where is the Government going to get the money to pay for that guaranteed healthcare. Will they just plant a few more fields of those magical money trees? Or should those healthcare workers all be placed in chains as Slaves?

The people that fight this get insurance from their employers.

Which would than go to the government to pay for that healthcare resulting in the same base line.

@@draconusspiritus1037 they have the money already. You pay enough in insurance.... big pharma just needs regulation

...PEOPLE PUT THEM IN AND ...PEOPLE CAN TAKE THEM OUT.

Make America great again

The difference between average people and achieving people is their perception of and response to failure." invest today and have your money work for you while you go asleep.

@@RossetVladimir Sounding so confident like someone who is not scared of the global economic doom that has be fallen many nations.

lol...of course yes, i give all accolades to sir Elton's expert service over the years. His strategies and portfolio has helped me secure a lot in business, and I'm so open to more capital gains with him.

Investment are stepping stones for success...the best thing that should be on every wise individuals list at this point is investing into different streams of income that does not depend on the economic scrutiny of any nation. and only the coined can survive this.

The best thing that should be on every wise individuals list is diversifying into different streams of income that does not depend on the economic scrutiny of that nation.

Yeah that only works if you have active worker's union. US has opposite of this.

Reagan neutered American labor unions in the 80's, only 10% of US workers are unionized. It's bad. People here are so brainwashed that people who currently make around $15 an hour are complaining about the minimum wage being raised, not realizing it will give them negotiating power with their employers if they and their co-workers collectively bargain (they don't even have to start a union which is ridiculously difficult here bc of draconian laws)

@Exanimationes Incidamus Not really. If you don't pay the federally mandated minimum wage you violate the law, thus can be prosecuted by the government. You aren't prosecuted if you don't listen to the unions, because they aren't a government-ran programm. The worst that can happen in countries without minimum wage is that the worker/workers that feels underpayed can leave the company. This motivates the company to pay their workers the highest wage they can if they want to sustain work of that particular worker. Unions and federally mandated laws are very different.

@@resugram_YT It only works well if you have a workers and corporation union, that are neutral 3rd parties.

Unions also,forced every big manufacturer to leave anerica and killed millions of jobs. So congrats on supporting that.

answer: This video pretends we don't know. But we do know. Companies could afford to pay over $20 per hour ( in todays money ) back in the late 60s. No reason why we can't keep up with inflation and cost of living. No reason why a company has a right to exist to the point of paying their workers starvation wages. If your business can't compete unless its wages are starvation wages, then the free market says you should go bye bye.

@@Dennzer1 You conveniently forget that the vast majority of people arent employed by companies? The average small business has nowhere near the amount of wage capability that companies do

Why should a worker in one state be paid less than another for the same work, just because poverty averages in that state may be different?

@@lunaucprobably7487 Cost of living, people are paid different for the same work in different states all the time.

yeah, but the issue is when you have extremely gerrymandered red states that think you should exploit workers without limits (weird to say this being a libertarian but it's true), and end then asking the federal govt for food stamps, public housing, etc. With huge amounts of poverty and in need of aid

@@kilougi You are no Libertarian. Libertarians believe in the free market, we don't believe in a minimum wage. It's because it's illogical. Libertarians have a foundation of knowledge in economics. Workers are not being exploited. You have to understand prices/costs are set by supply and demand whether inflation has kept up or not. So when you increases wages you increase prices/costs. Increasing wages doesn't increase resources. For example, if we have 100 cows the cost of milk would be immense. How can 100 cows give 320 million people milk? A gallon of milk can be a 100 dollars. Saying "INCREASE WAGES SO WE CAN AFFORD IT!!!" is just childish thinking because that won't make 100 million cows appear on our lawns. Resources won't magically appear. So the milk will rise even higher in price to offset this. This is why raising minimum wage and artificially raising wages in general is terrible. Also, it devalues everyone's bank account since those dollars you currently have are worth much less now. Saying workers in America are being exploited is ridiculous on even more levels. Our lower class is the upper class of the world. Our lower class is richer than our middle class a couple decades ago. Our standard of living is rising in every class of people including those in "poverty". Keep in mind how rich you are is determined by your standard of living. Washington creates the upper, middle, and lower class. They randomly defined poverty, there's no set definition. Tomorrow you can wake up and they say "any household making below 500k a year is now in poverty" and that will throw about 99 percent of people in poverty over night.

@@bane3991 momme is calling you kid, time to go to sleep. Let the grown up talk

Yeah but they still make laws that benefit certain groups over others. People are perfectly capable of deciding for themselves if a wage is high enough for them. In the US, I am perfectly willing to learn a trade for below minimum wage but the government has taken that choice away from me. Government should stay out of so many things. Health care was just fine until socialist shitwits intervened. Now it is expensive and government has seen fit to intervene again and is just making it all worse.

Interesting, I'd love to have seen how that impacts equality. I'd imagine it's bad in one way or another but maybe it's something I'll need to look up.

@@dylreesYT kinda the same in Illinois Chicago is $13.50 a hr but just outside anywhere else it's $8.50

Why not raise them both to $24 and then everyone can just be rich? Easy...right?

@@koboldhelper only $24? That's not much of an increase for the median household. I'm thinking more like $51 (the one is to represent 2021). Then in 2022, it can be increased to $62 and just keep it going like that until everyone in a billionaire like Jeff Bezos and Elon Musk. India's priminister, Modi, a few years ago promised a toilet in every home. I shall run for president and my slogan shall be "A space company for all" so Musk, Bezos and Branson don't feel so special.

If min wage should exist, it should be implemented in a decentralized manner (locally or by unions). Not every industry/location will see the same monopsony power the video mentions. Diff costs of living vary geographically. Painting a broad brush with a federal min wage can affect locations and industries differently.

Why would zero hour contracts be due to a higher minimum wage? They’re about increased flexibility to meet higher/lower demands, but a higher minimum wage would also increase payments for zero hour contract employers.

Yes. Lol even internship is competitive enough

Why stop there? Make it a 1-day week. And pay $800/hour.

How is your proposed 4-day work week going to work out for businesses open 7 days a week? Should McDonald’s and Burger King close Fri, Sat, and Sun? Should the police and fire dept and utility companies shut down and stay home 3 days a week?

Plain and simple: If minimum wage doubled, employer labor costs double, and prices double. Rampant inflation. Worker pays more taxes, too, and gains nothing.

@@kathyyoung1774 it doesn't need to double, it does need to rise to a certain number that is sustainable. Don't let the myth of higher wages means companies raise prices, companies will raise them regardless. However the dollar amount matters little it's the hours that mean just as much. Sure 20$ an hour is great, but if you only get one hour it's pointless.

@@GravaticBurst If you think raising wages does not result in raising prices, you don't understand economics. There is no such thing as a "sustainable" number. $15 an hour is MORE than double the current $7.25, and many Democrats are insisting it should be raised to $25 or $30. THEY don't understand economics either! When wages rise, prices have to rise. Companies normally do not raise prices unless they have to, because of competition. Each has calculated what they have to charge to meet their costs and make a calculated profit. They cannot double salaries, wipe out their profit, and stay in business. That's basic.

Who's stopping you for asking for a raise? Or getting a different job that pays better? It's what you're asking minimum wage workers to do right? Besides, if you work for an organization that doesn't increase your wage with inflation (2 percent annual increase for example), then perhaps you should find a job that does. The only difference between them and you is their wages aren't enough to survive on. I mean, you are asking minimum wage workers to get better jobs to avoid poverty, so to keep your stature as "better than the minimum wage workers," you can also do that by finding a different job. And in your situation, if your wage stays the same, you won't be able to survive off it either when inflation reaches that point. Which is the root of the problem, the wealthy people simply hoarding money and making it difficult for you AND them. Eventually it will just be the 1 percent and everyone else if wages continually drop further and further into poverty wages. So don't get angry at minimum wage workers. They want to live and work and if they can't afford to do so, they'll become unemployed and your taxes will have to increase to pay for them on welfare because we know the 1 percent doesn't pay taxes. So... Yeah... Your choice.

@@jrcrules And you do realize that minimum wage causes inflation, right?

Wont work. CEO's needs a lot of money to pay assets such as rent, equipment, and marketing. The main issue are the franchisers refusing to employ more if the business is fast pace.

@@Mitaka-Asa CEOs don't use their personal incomes to fund the companies operations, and if they do then the CEO is being payed beyond what the company can reasonably afford.

In theory this sounds great, but in practice this doesn't really work. Recently read about how a company to avoid this taxation, just rehired their lowest employees as contractors to avoid paying the tax. There will always be a workaround unfortunately.

that sounds like a really bad idea you would basically accelerate automation by like 1000%, and people would think twice (more like 10 times) about starting a revolutionary company in the US, and even worse it doesn't even work, I can think of like 10 loopholes, why not just hire another company that is responsible for those workers so that low paid workers don't affect your fat paycheck. In fact, that already happens in companies like Nike and Apple, when they just hire Chinese companies to run human meat working machines so they can make big stacks. The sad reality is that there is no easy answer.

@@happypt2929 thats not gonna dissuade someone from starting a revolutionary company. If the CEO payed all his workers 15 an hour he would be entitled to up to 1500 an hour. If you're not content with 1500 an hour you've got something wrong with you

you can make ur own playlist..

Win-win

All prices went up. They always do when wages go up. Basic concept.

​@@kathyyoung1774mostly prices where workers earned minimum wage, that doesn't affect employees salaries in executive positions.

@@ozymandias8523 True. It affects prices and potentially profits. Since no reasonable company is going to just lose money or settle for less profit with each pay raise, they have to raise prices, which wipes out the extra buying power of the minimum-wage earners but also negatively affects everybody else, too, --- those of us who are SKILLED workers, as opposed to UNSKILLED minimum-wage earners. Those of us who didn't get raises when minimun-wage earners did.

Someone capable of such productivity isn't going to settle for something like that. And if a business owner stopped hiring employees there is a high chance of bankruptcy depending on the industry. Things are far more complicated than you make it sound.

@@ttt5205 nah with my business I’ll go to China and buy their kiosk/robots. 😂

That is what small owners will all do. You either get employees who will work their fingers to the bone constantly or replace them with robots where possible. More people will be jobless then ever before XD.

@@ttt5205 *illegal immigrant has entered the chat* 😁 “I’ll do both there jobs for half!”

@@celiafrostborn We have minimum wages in Norway and strong unions that work to prevent this kind of exploitation of workers. Despite this small businesses thrive in Norway.

They weren't really trying to make a case for lowering min wage, simply cherry picking a narrow example (ignoring several other economic factors) to make a weak case for raising it.

What do you think full time is?🤣🤣

@@joshlopez9056 anything more than 30 hours week is usually considered full time work

yes. Unfair distribution.

Companys mught move away from Georgia.

@@sepmeulders3163 they might. And that my friend would be known as an unintended consequence. It's something politicians rarely consider when drafting their bills.

That is not necessarily a functional approach, unfortunately. Any implementations in the real world has to interact in the real world, and that means that there will be significant data contamination. There are a lot of potential changes that, if made on a federal level, would function completely differently in comparison to state level. Certain things you *need* to test on the same scale as it will be implemented on to get useful data.

Sadly, it would most likely work very well in Metro Atlanta; and perhaps some other areas like Macon and Savannah. Everywhere else in the state, it would probably destroy more jobs than it creates. :( Too many low margin businesses that are just trying to get by paying what they can.

@@brymht precisely. If it doesn't work well everywhere, then they need to rethink the law. By testing it out in a smaller sample of the population, the damage, if any, can be contained and remedied.

In regards to cost-push inflation, this is unlikely to happen as empirical data findings evidence that the cost can be shared on such a large scale that the result on the consumer is negligible, take Denmarks Mcdonalds for instance, where workers are paid $22/hr and the price of a big mac differs from the USA by mere cents. In regards to demand-pull inflation, this inflation is a sign of a healthy economy and can be lowered by monetary policy such as highering interest rates to lower demand. And finally, regarding housing prices as a part of the cost of living, these prices are actually influenced more heavily by other factors than inflation and as such the result is negligible once again, this can be seen by how house prices have risen by 40% since 2009 whilst the minimum wage has had no change since that equal date.

Of course! When the minimum wage is increased, ALL prices rise because employers have to pay more, have higher costs. That is a basic concept few people seem to get.

Historically this has happened in a ratio of 0.36:10 ratio of goods increase to wage increase. You could raise the wage by 100% and would only see a 3.6% change in goods.

They're increasing regardless.

​@@Aelcroyou forgot the cost of living there and high taxes.

Increases in the minimum wage havent led to that high of inflation and rises in cost for products..

Also prices rise, because higher wages raise employer costs, and that cancels out the wage gain while increasing inflation. Minimum wage workers need to get more job skills to be worth more , not just yell that they need more money.

@@kathyyoung1774 employees need to stop having people work 10 to 15 hours a day for low wages that's the problem. Hate capitalism. Since 15 dollar minum wage passed I own my own business

@@starone2737 People who have any job skills don't work 10-15 hours a day for low wages. If someone can learn your job in a day, you surely aren't worth $15 an hour! Minimum wage of $15 doesn't enable you to own a business. It breaks businesses. Try to find ANY country in which Socialism has worked.

@@kathyyoung1774 that's where your wrong there's many people in even high skill jobs being exploited by there bosses for there time and money. I worked as a plumber and barback for a restaurant made my boss 30000 dollars in sales for one day alone. And he decided to lower my wage. I had to quit and threatened to rob him in order for him to pay the money he owed me. Many people have capitalized off the 15 dollar minumum wage like myself. Your just angry because everyone is going to be of equal class and many European countries pay above the minum wage and they doing just fine. Nobody believing your bs.

No such thing as a free market. Most workers have too little bargaining power.

Trust me, next couple of years we'll hear from media about this subject a lot! We are living in very interesting times. main thing we all make it through it safe and well.

@@IIII...... that doesn't make sense. If you pay people low wages, they can't afford to live.

@@IIII...... you said the homeless population will decrease. If people can not afford to pay for housing due to being on such a low income. How will they afford a home? I'm not talking about being rich, I'm talking about being able to afford rent, bills, food and clothing.

@@IIII...... I'm not from the USA. I am from the UK. Here, when people get paid minimum wage they can't afford to pay for rent, bills, car expenses, food. I am surprised no one taught you to have understanding and empathy towards those who have been delt an unfortunate hand in this life, maybe they should have taught you that in school between your economics classes.

@@IIII...... you are right, but you know what don't waste your time, people will never understand and they will blame capitalism.

They didn’t answer the question...literally at the end they basically said “it’s complicated, we’re not sure”

@@Agtsmirnoff That is exactly the answer I was looking for. Now I know what we know 😌. We don't know. Which is to say, we know a lot, but it's complicated. Sometimes, my friend, reality is complicated. If you want to truly understand something, then open your mind and breathe in The Truth. 🌬🧠 Whatever That Truth May Be.

@@Agtsmirnoff vastly complex socio-economic questions like this rarely have a clear-cut answer. The analysis always has to be nuanced and full of caveats. This video is not meant to lead to a clear conclusion, but to do a deep dive into the various aspects of the question.

I like your emojis

A minimum wage tied to inflation undoubtedly is essential though

@@memphisstef3808 Agreed

The minimum wage should be abolished

You're assuming that a federal minimum wage is required to be a static number, it's actually not. They could very easily make it a formula that's tied to both inflation and cost of living so the number would be different depending on location.

Well the unemployment rate in Canada is actually higher. So that's just one metric and the price of goods has certainly increased so I think you need some data to back up your beliefs.

Prices do go up. I knew someone who worked at Wendy's and their menus got updated with new prices the same week that min wages go up.

Now I'm not saying I disagree or agree with minimum wages, but let's just not jump to thinking costs won't get absorbed somewhere.

I think those who live in Canada need to do some actual research on algorithms and how those correlate with cost of living and reminder we are in the early stages of AI which will either help or hinder but given that currently how our corrupt system works it does NOT bode well.

@@sleepy.bunneh You do realise one anecdote at Wendy’s doesn’t really mean much compared to the actual inflation rate of goods and services across the whole country?

Rent will go up when people earn more.

@@clam4597 Prices of goods will go up with labor costs increase. Sandra here seems to have forgotten that rent isn't meant to be flexible based on my personal situation. They're also forgetting that there's sometimes 6 bedroom apartments in some places. Sometimes 4 bedroom apartments exist and are great while being pretty cheap. My 1 bedroom I live in currently is under $700/month with utilities. My friends live in apartments with room mates and their rent + utilities has decreased to under $400. Granted, we are around 2 developing cities in my state, but you don't *need* to live in a city, do you?

@@dominat0r3600 Where i lived it was 2000

@@jhostintola3092 have you tried moving to a not so high cost of living place?

@@dominat0r3600 Business's should if they cant afford labor costs

More people with expendable income means more people will come to your restaurant, why is it so hard to comprehend?

@@australienski6687 Higher minimum wage doesn't equate to more people with expendable income though. The bulk of the increase will goto the people living paycheck to paycheck who, by the way, will have to pay more for a lot of things because the increase in labor costs isn't going to be absorbed by the businesses it is going to be passed right on to consumers.

@@australienski6687 Not that simple.

Oh? Instead having no one that could afford to eat in your restaurant?

@@nfspbarrister5681 obviously people can afford it since they’ve been in business due decades. Nice straw man though.

Increase minimum wage (cost to employer) results in higher prices, of course. So the unskilled worker loses. The solution is to get more job skills and education and leave the minimum wage jobs (entry level jobs) to teens and beginning workers. It’s outrageous to be 40 years old, have no job skills, and demand $15 an hour. That’s more than I made teaching math with a masters degree (I.e., WITH job skills!).

Automation is inevitable though, what's gonnna happen when companies go to that point anyways?

Quite like the idea of that

But if you tie it to the bottom 20% then that leaves 80% of workers out in the cold. That makes no sense. Make it aggregate or it will always be inherently unfair to some.

@@PhokenKuul as the poorest 20% of states get richer, the minimum wage would increase. If for example Arkansas outgrew Maine then it wouldn't increase based on AK's growth but ME's growth. If it was based on 50% median wage of all of America then poorer states like Arkansas would lose it's comparative advantage compared to a middling state like Iowa and would disproportionately increase inflation hurting those on lower incomes. The US is simply too big to have a sweeping minimum wage like Spain, for example. There's completely different economies with vast inequalities. But at the same time, maybe you're right. Maybe it would be better in aggregate/individually. There just needs to be more research.

@@dylreesYT That was my thoughts on picking the lowest quintile of states. The resultant wage is a compromise minimum that can be ever-changing with the median wage and states at the bottom. Glad you picked up on that.

@@doug1124816 Yeah, haha. That's why I said I liked the idea xd In Singapore, they follow something slightly similar in which each year a government body works with businesses to increase workers pay by the increase in productivity. That's only possible because a lot (if not all/most) of people in Singapore are part of a trade/labour union. A federal minimum wage system could work in a similar way by measuring economic output as you say. Even I think increasing minimum wage by double is a bad idea, especially when it's part of an evil plan by Amazon (they increased pay to $15 for all workers, their competitors are surviving by having lower wage costs and Amazon surviving on investor money. By making their minimum wage $15, it boosted political support but if the federal minimum wage is put to that then their competitors will struggle massively and increase Amazon dominance. An evil genius plan, although obviously just a theory since they would never confirm such a thing). I like the idea of matching to the peak from the 60s and then increasing with inflation but your idea seems more economically fair ;P

Exactly what we need more of, artists and philosophers, who haven't contributed anything important to society for half a century.

Even poor people will eventually save money given the oportunity

Spoken like someone who knows nothing of economics

@@cesarrojo7853 ok, and ?

@@SamaelMoneyStein Ah yes... The hardest college of them all...

@Ryan Alex sure. Rich people are the ones opening bakeries, bars, restaurants, paying taxes, etc... In other words, main artery of economy...

Profits aren't the thing blowing cost of living out of the water. Usually when a market has a very high profit margin, competitors start entering that market and thus the profit rate declines.

Nothing called maximum wage no onecan control that , that is depend on your hirer argument and your value

FINALLY SOMONE WITH A BRAIN

Welcome to KZfaq. It'll only get worse 👍

Well they need to earn their money somehow

no it will impact both, it will rise the median hourly wages in cali into 25 range and raise west virgina into 20

@notyuu well yeah, thats exactly the kinda thing that will drive up wages for you too. If you can get similar money for less demanding work then your employer will have to pay you more or they won't be able to staff their buisness.

@notyuu Thats pretty condescending my guy 😅 Not if minimum wage is tied to inflation, then it'll just rise as prices do and still represent the same proportionate amount of wealth

@notyuu I get you, greed tends to lead to difficult problems. I just happen to believe that we can design systems to counter it. One example is child labour laws, they were pretty effective preventing rich greed from exploiting the working class in at least one way. I would think that having an inflation based minimum wage would similarly reduce the ability of the rich to exploit the poor.

Keep screaming mate, it will take time before you realize these people don't live in reality and are chasing a make believe utopia

I just won’t hire anyone anymore. I’ll continue to work for myself.

People who get education and job skills make more money. Uneducated, unskilled workers don’t. The solution is NOT to pay more to the unskilled. They need to get more skills and be worth more.

They showed the views of Thomas Sowell in the beginning. Old perfect competition labor markets. That's what the new studies showed to be wrong.

Maybe you don’t understand Switzerland?

That is an interesting question. If 90% of countries do have a minimum wage, what are those other 10% doing? What other ways are there to make sure workers can afford necessities, and how do things like socialized medicine and a stronger welfare state compare with minimum wage in terms of how they affect the economy? People always seem to argue from ideological positions as either for or against *all* forms of wealth redistribution, and don't often discuss how different strategies stack up against each other.

That is due to the unions the same happens in Denmark. Balance is the key

@@krumble104 educate us then. That’s all I’m asking Bloomberg to do

Automated solutions will be cheaper regardless of how low the minimum wage is as humans can't compete with robots when it comes to repetitive tasks. Call center jobs are exported to countries where they get paid $3/hr and they're still in the process of automating such jobs because it's even cheaper to those companies than paying $3/hr. Automation will happen regardless of minimum wage increases or not.

... And an increase in spendable income, thus an increase in an individual's consumption/purchasing, generally a more active and healthy economy. I don't see the issue here. The video seems to just assume all the workers are stuffing their earnings under their mattress or something.

@@drshabink You’re right. I didn’t mean it as a negative side-effect, but it is definitely a thing and it is just totally overlooked in the video

@@drshabink It just changes the distribution of income between capital and labour it doesn’t necessarily change total spending. It might mean more purchases of big macs and less purchases of factory equipment

Prices skyrocket, of course, because labor costs to employers skyrocket. This is such a basic concept, but unskilled workers who want more money can’t seem to understand that! They act like they think prices won’t rise, but they will have twice as much money.

There’s 18.6 million millionaires in the United States .. that just means your net worth is a million dollars.. that doesn’t mean they receive a ton of money per year .. plus not all of them run a business .. if you own a small business or even a franchise and your margins are so minuscule how do you expect to pay your workers such a drastic minimum wage .. people will get laid off

If they implemented a UBI for all adults the minimum wage would natural rise as nobody will be working for $7.25, they only get away with that low a figure because the lowest level workers have no bargaining power and have to work just to feed themselves so they're desperate for those jobs.

The United States is not the richest country in the world. People believe the lie.

@@18rickster18 still a choice to have that level of income inequality.

I guess I might as well start investing in automation machines for my business. I've been thinking to do it for w while but now I guess it's the best time. Automate and outsource, thats the way to go baby.

Automation yes but no to outsourcing since outsourcing reduces the quality of product.

@@hbarudi Minimum wage can reduce quality of product.

or, they got the 2nd job because their first job was no longer providing enough to pay their needs...

@@brianbates212 which still translates to more hours and higher hourly labor value.

Raising labor costs raises prices, so there is no net gain for workers. How do you see having to get a second job as a plus?

Then they will just start lying in order to avoid losing profits to a wage increase.

​@@DST-1-hpexactly

thats most companies lol, why do you think lots of companies are making record profits?

Free market does not care about "fair" :) it only cares about maximizing the bottom line

@@user-gc1wj8tt2p a minimum wage is needed for skilled workers so when they enter the workforce out of college or training thy can get that minimum wage, believe it or not but there are somepeople that are untrainable the only job they can hold is one that pays 4$ an hour.... by having a minimum wage laws for these low skilled workers immediately drives them out of the labor market

You sound like a greedy capitalist!

@@DavidEVogel and no body like greedy capitalist.

@Ryan Alex Great! That would be more jobs for me.

Yep.

It's like saying "if you cannot earn more than living wage, you shouldn't be living"...

Do you have a link?

@@immanuelt613 weird I replied to you. Did it get deleted?

Only problem being inflation will likely pick up, where spending power will be negated by price rises (for basic goods and services). But as inflation is a way for a hugely indebted county like the US to get out of trouble, maybe that's the intention.

So trickle economics?

@@herrop great reply. If productivity grows at equal (or faster) rate than the growth of demand, then inflation won’t be a problem. The growth in demand from a higher minimum wage would typically be higher demand for mass produced items. These items can be more efficiently made than bespoke items a billionaire might purchase (Eg a Picasso painting). Selling more of some products might even make them cheaper because the fixed costs can be divided across more sales.

If you increase labor costs, you increase all prices and taxes, of course! Make the minimum wage $15, and a Big Mac will cost $10. Milk will be $9 a gallon. Rent will double. Gas will double. All prices will double, and you will have no net gain but will pay more taxes. Get more job skills, and you can make more money. A minimum wage job is an entry level job, not meant to be a lifetime job!

@@kathyyoung1774 Inflation does not work like that a Big Mac is not going to go up that much it may go up a $1 or 2. There are not enough higher paying jobs for everyone to move up to. You obviously know nothing about economics.

Yeah, and title it: "Which would destroy the US worker faster?"

@@johnnysupreme5718 how? If you pay people more they produce more. Simple economics.

@@jefflaclaire2206 so why don't you just pay every employee at least a $100

@@johnnysupreme5718 I actually pay more, starting rate at the company I manage is $15/hour with 8 hours shifts. Any business that has employees making less than $100 a day suffers greatly from poor customer service and output. Sometimes you gotta pay a little to gain a lot.

@@jefflaclaire2206 Only 15 bucks an hour? Why not double it? If more money means more work, why aren't you giving them bricks of gold?