0
   

Let's discuss the minimum wage

 
 
okie
 
  1  
Reply Fri 14 Sep, 2007 02:24 am
As soon as you start talking about "social justice," you lose me, as that is the language of the Pol Pots, Stalins, and Fidel Castros of the world. If social justice means you should be able to live just as well by sittin on your behind as the rocket scientist, then I think you are barking up the wrong tree, so quit your whinin and go to work.
0 Replies
 
Thomas
 
  1  
Reply Fri 14 Sep, 2007 03:22 am
okie wrote:
As soon as you start talking about "social justice," you lose me, as that is the language of the Pol Pots, Stalins, and Fidel Castros of the world. If social justice means you should be able to live just as well by sittin on your behind as the rocket scientist, then I think you are barking up the wrong tree, so quit your whinin and go to work.

It's always nice to define not just your own arguments, but also your opponents' arguments and who their most prominent proponents are. That makes it so much easier to argue against them -- never mind that you're wrong.

The most prominent philosopher of "social justice" today is John Rawls. To my knowledge, the concept first emerged in Catholic Social Teaching at the end of the 19th century. (Rawls's major 20th-century innovation was to give a secular foundation to the philosophy.) This school of thought holds that a social order should be measured by the welfare of its weakest members. (If you are a Christian, Okie, you may remember that the teachings of Jesus Christ were quite similar on this point.) The practical result of the philosophy is to accept capitalism as the best system for generating wealth, then supplement it with a welfare state for sharing the wealth. The optimal welfare state, according to this philosophy, is the one that redistributes income to the point that maximizes the wealth of the poorest members, but no further. Redistribute too little, and the strong leave the weak out in the cold. Redistribute too much, and productive members of society lose their incentives to produce. The trick is to hit the sweet spot in the middle.

You can get a feel of where this sweet spot is by looking into the CIA World Factbook. There you can find GDP data for each country, along with the income share of the lowest 10% for most countries. From this, you can calculate which countries maximize the income of their lowest 10%. These countries would define the direction into which the proponents of "Social Justice" would reform the United States. The last time I did this excercise, the top five countries were Taiwan, Japan, Norway, Finland, and Austria. All of these countries are "more liberal" than the US currently is. But more importantly, all of them also resemble the current US much more than they do Stalin's Russia, Pol Pot's Cambodia, and Castro's Cuba. Your insinuations in this direction are pure demagoguery.

(Full disclosure: I am not a Rawlesian myself, nor do I adhere to Catholic Social Teaching. I just don't like it when ideas are gratuitously defamed.)
0 Replies
 
DrewDad
 
  1  
Reply Fri 14 Sep, 2007 07:12 am
engineer wrote:
DrewDad, I must really compliment you. This thread has gone on a while and with the exception of a couple of uncalled for jabs at Okie has been very civil. What's your secret?

I was on vacation and haven't posted in a week?
0 Replies
 
DrewDad
 
  1  
Reply Fri 14 Sep, 2007 07:24 am
Thomas wrote:
(Full disclosure: I am not a Rawlesian myself, nor do I adhere to Catholic Social Teaching. I just don't like it when ideas are gratuitously defamed.)

Look, if you keep being too reasonable we may have to ban you....

Laughing
0 Replies
 
Thomas
 
  1  
Reply Fri 14 Sep, 2007 10:13 am
Sorry, DrewDad. I'll try to be more abusive in the future, you fücking communist nazi.
0 Replies
 
DrewDad
 
  1  
Reply Fri 14 Sep, 2007 10:29 am
Thomas wrote:
Sorry, DrewDad. I'll try to be more abusive in the future, you fücking communist nazi.

That's more like it, you Libertarian pot head.
0 Replies
 
Cycloptichorn
 
  1  
Reply Fri 14 Sep, 2007 10:31 am
DrewDad wrote:
Thomas wrote:
Sorry, DrewDad. I'll try to be more abusive in the future, you fücking communist nazi.

That's more like it, you Libertarian pot head.


You sure you're not getting us confused?

Cycloptichorn (I didn't exhale?)
0 Replies
 
DrewDad
 
  1  
Reply Fri 14 Sep, 2007 10:45 am
Cycloptichorn wrote:
You sure you're not getting us confused?

I think maybe Thomas confused me for you, you Communist wealth-sharing pot head.
0 Replies
 
okie
 
  1  
Reply Fri 14 Sep, 2007 11:29 am
Thomas wrote:
okie wrote:
As soon as you start talking about "social justice," you lose me, as that is the language of the Pol Pots, Stalins, and Fidel Castros of the world. If social justice means you should be able to live just as well by sittin on your behind as the rocket scientist, then I think you are barking up the wrong tree, so quit your whinin and go to work.

It's always nice to define not just your own arguments, but also your opponents' arguments and who their most prominent proponents are. That makes it so much easier to argue against them -- never mind that you're wrong.

The most prominent philosopher of "social justice" today is John Rawls. To my knowledge, the concept first emerged in Catholic Social Teaching at the end of the 19th century. (Rawls's major 20th-century innovation was to give a secular foundation to the philosophy.) This school of thought holds that a social order should be measured by the welfare of its weakest members. (If you are a Christian, Okie, you may remember that the teachings of Jesus Christ were quite similar on this point.) The practical result of the philosophy is to accept capitalism as the best system for generating wealth, then supplement it with a welfare state for sharing the wealth. The optimal welfare state, according to this philosophy, is the one that redistributes income to the point that maximizes the wealth of the poorest members, but no further. Redistribute too little, and the strong leave the weak out in the cold. Redistribute too much, and productive members of society lose their incentives to produce. The trick is to hit the sweet spot in the middle.

You can get a feel of where this sweet spot is by looking into the CIA World Factbook. There you can find GDP data for each country, along with the income share of the lowest 10% for most countries. From this, you can calculate which countries maximize the income of their lowest 10%. These countries would define the direction into which the proponents of "Social Justice" would reform the United States. The last time I did this excercise, the top five countries were Taiwan, Japan, Norway, Finland, and Austria. All of these countries are "more liberal" than the US currently is. But more importantly, all of them also resemble the current US much more than they do Stalin's Russia, Pol Pot's Cambodia, and Castro's Cuba. Your insinuations in this direction are pure demagoguery.

(Full disclosure: I am not a Rawlesian myself, nor do I adhere to Catholic Social Teaching. I just don't like it when ideas are gratuitously defamed.)

I merely pointed out that the word, social justice, is a red flag to me, in terms of the poster's underlying philosophy. It typically denotes a dislike of capitalism and a love for government intervention to make things more fair. I have read about how the Pol Pots, the Castros, the Stalins, became motivated, and almost without fail it was in the name of social and economic justice. Further, I think the countries you cite are countries with more ubiquitous and homogenous populations, so I don't think the comparisons work perfectly.

If you are going to start quoting Jesus Christ, I don't think he was a proponent of government programs, and in fact he never became involved in any that I know of. It was all on a personal and voluntary basis, so your reference is not applicable. Who here has ever criticized voluntary giving to charity, which is a huge activity here in the States?

I read on forums like this all the time what government is not doing, and very little about what responsibilities that people have to be responsible for themselves. We don't teach citizenship, we don't talk about it much as a society, and we don't emphasize it. The emphasis is on what government is doing or not doing for every poor soul out there. Yes, I am in favor of justice and equality of opportunity, that is what this country is about, and that is the reason why millions want to come here.

If I wrongly offend anyone by the reference to communist dictators, I apologize, but they are free to call me on it and tell me that they are very pro-capitalist and anti-communist, but rarely do they ever do that, so I am assuming I was not too far off in my hunch most of the time I use the reference. After all, the reference is valid and I don't think valid references are necessarily demagoguery.

One last point, I fully realize we have a certain amount of social programs, but we are constantly needing to evaluate those to figure out if they are really helping us in the long run. I am not particularly thrilled about instituting more, and as I said, I don't think Japan and the other countries mentioned are particularly good comparisons.
0 Replies
 
dyslexia
 
  1  
Reply Fri 14 Sep, 2007 12:27 pm
I hate capitalism, I hate capitalists I even hate chocolate.
0 Replies
 
Walter Hinteler
 
  1  
Reply Fri 14 Sep, 2007 02:08 pm
An interesting, at least I think, presentation of basic data about the level of the minimum wage, the proportion of average gross and net earnings it represents, and the proportion of employees earning the minimum wage for the EU, Japan and the United States (US):

Minimum wages in Europe - Background paper
0 Replies
 
okie
 
  1  
Reply Fri 14 Sep, 2007 03:16 pm
So, the percentage of wage earners in the U.S. that earn only minimum wage is only 1.3%. I think this seems to confirm the opinions of alot of us here that the minimum wage law is nothing more than window dressing. Probably most of the 1.3% are young people, many of which might still live at home? Not a big deal, but it makes politicians feel good to make such laws.
0 Replies
 
Cycloptichorn
 
  1  
Reply Fri 14 Sep, 2007 03:19 pm
okie wrote:
So, the percentage of wage earners in the U.S. that earn only minimum wage is only 1.3%. I think this seems to confirm the opinions of alot of us here that the minimum wage law is nothing more than window dressing. Probably most of the 1.3% are young people, many of which might still live at home? Not a big deal, but it makes politicians feel good to make such laws.


You don't really have any data showing that the majority of minimum wage earners are in fact young folks, do you? Just a supposition on your part?

You also realize that 1.3% equates to about 3 million people? Yeah, screw them, tiny little segment of our population.

Cycloptichorn
0 Replies
 
Advocate
 
  1  
Reply Fri 14 Sep, 2007 03:38 pm
Half those receiving the minimum wage are adults.
0 Replies
 
fishin
 
  1  
Reply Fri 14 Sep, 2007 03:52 pm
Cycloptichorn wrote:
okie wrote:
So, the percentage of wage earners in the U.S. that earn only minimum wage is only 1.3%. I think this seems to confirm the opinions of alot of us here that the minimum wage law is nothing more than window dressing. Probably most of the 1.3% are young people, many of which might still live at home? Not a big deal, but it makes politicians feel good to make such laws.


You don't really have any data showing that the majority of minimum wage earners are in fact young folks, do you? Just a supposition on your part?


Not that I agree with the rest of his comments but BLS data does support his contention that the majority of minimum wage earners are young. 53.3% of minimum wage earners are under age 25.

http://www.bls.gov/cps/minwage2005tbls.htm#7
0 Replies
 
DrewDad
 
  1  
Reply Fri 14 Sep, 2007 04:09 pm
Cycloptichorn wrote:
You also realize that 1.3% equates to about 3 million people? Yeah, screw them, tiny little segment of our population.

First, your number is off. Okie stated 1.3% of wage earners.

Second, the "yeah, screw them" comment is a complete strawman. I don't believe anyone here has advocated any policy which would "screw" low-wage workers.
0 Replies
 
DrewDad
 
  1  
Reply Fri 14 Sep, 2007 04:09 pm
Walter Hinteler wrote:
An interesting, at least I think, presentation of basic data about the level of the minimum wage, the proportion of average gross and net earnings it represents, and the proportion of employees earning the minimum wage for the EU, Japan and the United States (US):

Minimum wages in Europe - Background paper

I'm not sure you left us anything to discuss, Walter.
0 Replies
 
engineer
 
  1  
Reply Fri 14 Sep, 2007 04:35 pm
This is an interesting link on the last minimum wage increase. What is shows is that raising the minimum wage tends to bring more workers into the work force on the low end pushing out those on the low end of the work force who want to work but have minimal skills and training. The table I linked to shows employment among the young dropped substantially after the 1991 min wage hike, but increased relatively for those over 65. If you want to help those at the bottom of the spectrum, raising the min wage may do the opposite by enticing retirees to come take their jobs.
0 Replies
 
fishin
 
  1  
Reply Fri 14 Sep, 2007 04:47 pm
DrewDad wrote:
Walter Hinteler wrote:
An interesting, at least I think, presentation of basic data about the level of the minimum wage, the proportion of average gross and net earnings it represents, and the proportion of employees earning the minimum wage for the EU, Japan and the United States (US):

Minimum wages in Europe - Background paper

I'm not sure you left us anything to discuss, Walter.


I dunno. That report seems to raise more questions than it answers.

They include a note that the US data excludes all salaried people so that immediately takes out 40% of the U.S. workforce from their numbers.

Their 1.3% number includes people earning the minimum age and less but the earnings data doesn't include the tips earned by the ~70% of the workers in that category.

They mention a host of other factors that various countries use to set varying minumum wage levels amongst different groups so it is hard to figure out what their actual point is and how those different factors figure into it.
0 Replies
 
okie
 
  1  
Reply Sat 15 Sep, 2007 07:52 pm
engineer wrote:
This is an interesting link on the last minimum wage increase. What is shows is that raising the minimum wage tends to bring more workers into the work force on the low end pushing out those on the low end of the work force who want to work but have minimal skills and training. The table I linked to shows employment among the young dropped substantially after the 1991 min wage hike, but increased relatively for those over 65. If you want to help those at the bottom of the spectrum, raising the min wage may do the opposite by enticing retirees to come take their jobs.

Good point. Again, cyclops assumes that raising the minimum wage does not have unintended negative consequences, and evidence shows he is wrong. This is shallow thinking that does not consider all of the ramifications and effects seen in free markets. Just because I am against high minimum wage laws has nothing to do with whether I am against low income wage earners. I am in fact in favor of policies that help everyone, and I do not think minimum wage laws help everyone, including those that make minimum wages. I was in fact at one time a minimum wage earner, and in fact I was at one time making money below minimum wage because the job I was doing was not subject the minimum wage law.

I worked at minimum wage or sub minimum wage for several summers while still in school, and I bear no negative consequences from it, and in fact it convinced me more than ever that I wanted to gain a degree to gain a job that I would enjoy more and make more money at.

If the minimum wage was set at $100 per hour, how many people would seek higher education and further training? A few, but not as many, obviously. A ridiculous scenario one could say. Yes, ridiculous, but we should all be able to figure out that economics and the market is one of gradational effects, dependent on how much things are skewed. If the minimum wage law is at or about the level of the free market, then very minimal consequences occur, but also very minimal to nonexistant advantages for the minimum wage earner, but as the minimum wage rises to a greater spread between it and what the natural force of the market would dictate, then you begin seeing more severe effects and unintended consequences.
0 Replies
 
 

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