When the floor becomes the ceiling

Vanity | 4/25/2016 | J Twohig

[stocksthatgoup]

JT Economic Law - when the floor becomes the ceiling! If you look back at the history of price supports you will find that price supports became a floor price for commodities. Producers would continue to work as long as they could make a profit at that base price. A good example is the history of milk price supports. Rarely did prices rise above the floor of support. So much milk was produced that much of it was diverted to the making of cheese. By setting the minimum wage or floor at $15, we will be producing an artificial ceiling of $15 for a huge number of workers, while keeping a vast number of not yet skilled workers from getting a job and experience.

[stocksthatgoup]

It would make sense to set a floor (price support ) for US oil. Supporting US producers instead of letting Saudi Arabia and others from shutting down small oil companies from Price Dumping.

[nascarnation]

15 dollar min wage will necessarily reduce employment, put more people on govt assistance, and produce more Democrat votes. It’s very easy to see the plan.

[Tilted Irish Kilt]

$15.oo per hour assures automation as a replacement
It also eliminates an employee from proving their ability to perform menial tasks , to prove that they are capable for more higher skill tasks.
Inevitably , it will lead to increased expense to business owners and managers,.. and inflation ,
with a decrease in services.

[who_would_fardels_bear]

It would be nice if we went back to being a First World country making and selling high-end manufactured goods rather than declining to Third World status with an economy based primarily on commodities and their highly volatile prices.

Maybe we should start growing coffee, cocoa, and bananas to go with our new world status.

[I want the USA back]

The government does not have the right to set a minimum hourly rate.

[jonrick46]

For anyone not aware of the results of $15 minimum wage (another example of failed wage and price controls), check out what’s happening in Seattle:

http://www.aei.org/publication/the-new-restaurant-math-of-seattles-15-an-hour-minimum-wage-is-starting-to-break-the-system/

and, if you are not into math:

http://nypost.com/2016/03/12/how-the-15-wage-is-already-killing-seattle-jobs/

For a look at Nixon’s wage and price controls, look at the Cato Institutes’ analysis of it—we were warned before:

http://www.cato.org/publications/commentary/remembering-nixons-wage-price-controls

[alternatives?]

I would rather have government provide a subsidy of a few dollars per hour of working than handing out benefits to those who won’t work.

[nascarnation]

Actually the fed govt does that already.
It’s called the EIC earned income credit

https://www.irs.gov/Credits-&-Deductions/Individuals/Earned-Income-Tax-Credit/EITC,-Earned-Income-Tax-Credit,-Questions-and-Answers

[alternatives?]

It would be better to increase this than raise the minimum wage.