Social Minimum Wage now at $20 an hour in California

UFCUCF said:
I am a (very) small business owner. Nobody who works for me makes less than $20 per hour. That is a lot more than the min wage here in FL. My prices are competitive in the market. I made a bit less proft in short term but have maybe made it up in loyalty/retention.

The suggestions that a $20 min wage would wreck the economy is corporate shill speak.
Click to expand...

Kudos to you for being a good small business owner.

No one is suggesting that a $20 min wage wrecks the economy. If you pay, lets say 5 people, above the min wage for doing min wage work, that actually helps those 5 people because their extra cash does nothing to sway the market. If millions and millions of people all the sudden make 25% more, that floods the market with a bunch of extra cash and supply takes a while to catch up. Prices will rise quickly, then fall but never fall back down to what they were before the unrealistic min wage hike so we all just wind up having to deal with inflation while the min wage folks are back to where they were in the first place.

It mostly just hurts the middle class because now they have to wait a while for their wages to catch up and their savings is now worth less due to inflation.
 
RoastBeast said:
Kudos to you for being a good small business owner.

No one is suggesting that a $20 min wage wrecks the economy. If you pay, lets say 5 people, above the min wage for doing min wage work, that actually helps those 5 people because their extra cash does nothing to sway the market. If millions and millions of people all the sudden make 25% more, that floods the market with a bunch of extra cash and supply takes a while to catch up. Prices will rise quickly, then fall but never fall back down to what they were before the unrealistic min wage hike so we all just wind up having to deal with inflation while the min wage folks are back to where they were in the first place.

It mostly just hurts the middle class because now they have to wait a while for their wages to catch up and their savings is now worth less due to inflation.
Click to expand...
It doesn’t cause society wide inflation. It could cause the goods that minimum wage workers buy but in the flip side other prices would go down where the money was siphoned from. For it to be inflation, new money would have to be created.

It’s also not like the price of those goods would go up dollar for dollar. They would only go up a fraction of the pay increase those people get. Minimum wage workers will ultimately be better off. This is a boogeyman they use to keep people from trying to raise wages.
 
Blayt7hh said:
It doesn’t cause society wide inflation. It could cause the goods that minimum wage workers buy but in the flip side other prices would go down where the money was siphoned from. For it to be inflation, new money would have to be created.

It’s also not like the price of those goods would go up dollar for dollar. They would only go up a fraction of the pay increase those people get. Minimum wage workers will ultimately be better off. This is a boogeyman they use to keep people from trying to raise wages.
Click to expand...

What prices would go down? Min wage workers buy the same stuff as the middle class. Yeah Bentleys aren't going to go up but every other common purchase will.

You'll see that the workers in CA who are now making $20/hr will be no better off once prices catch back up to them in short order. It's not a boogeyman. It's supply and demand.
 
RoastBeast said:
Kudos to you for being a good small business owner.

No one is suggesting that a $20 min wage wrecks the economy. If you pay, lets say 5 people, above the min wage for doing min wage work, that actually helps those 5 people because their extra cash does nothing to sway the market. If millions and millions of people all the sudden make 25% more, that floods the market with a bunch of extra cash and supply takes a while to catch up. Prices will rise quickly, then fall but never fall back down to what they were before the unrealistic min wage hike so we all just wind up having to deal with inflation while the min wage folks are back to where they were in the first place.

It mostly just hurts the middle class because now they have to wait a while for their wages to catch up and their savings is now worth less due to inflation.
Click to expand...
These are fairytales that you believe NOT based on real data. No, giving the lowest wage earners a modest bump does not hurt the middle class. Prices may rise a bit but the additional spending will power the economy. It is good for everyone.
 
UFCUCF said:
These are fairytales that you believe NOT based on real data. No, giving the lowest wage earners a modest bump does not hurt the middle class. Prices may rise a bit but the additional spending will power the economy. It is good for everyone.
Click to expand...

It's a 25% bump. That's not modest by any means.

Feel free to bump this thread in a year and let me know how successful this artificially large pay hike went for everyone.
 
Corona said:
More automated order systems incoming. No matter how you try and beat the corporate system, they’ll always win and the general population will pay for it in the end.
Click to expand...
I only wonder who will spend money if you replace everyone with robots and AI

Most businesses one way or another looking for ways to automate their business to some degree.

Notice that many businesses already closing their doors. This is result of automation already set in motion and it will get only worse from here.
 
Two Crows said:
It might be somebody's theory, but it sure as hell isn't mainstream, lol.

How do you think stocks pay dividends?

How do you imagine loans pay interest?

This is nonsense.
Click to expand...
The mainstream understanding is that economic profits trend toward zero in perfectly competitive markets, which is what he's alluding to.
 
RoastBeast said:
It's a 25% bump. That's not modest by any means.

Feel free to bump this thread in a year and let me know how successful this artificially large pay hike went for everyone.
Click to expand...
I like this idea! What is our metric? Average cost of a bigmac in CA on May 4, 2025??
 
UFCUCF said:
These are fairytales that you believe NOT based on real data. No, giving the lowest wage earners a modest bump does not hurt the middle class. Prices may rise a bit but the additional spending will power the economy. It is good for everyone.
Click to expand...

Why not pay them $100/hour then?
 
ColemanwastheGOAT said:
If paying more is good for everyone, why not pay even more? What's the cut-off? Why is there a cut-off? What happens if you exceed the cut-off?
Click to expand...
Because there is a point of diminishing returns at which the labor market and economy can absorb increases. The cut off is determined by studies of past wages as well as simulations of what would happen. As has been repeatedly said, and I assume you ignored, the economist consensus at this point is most decent sized minimum wage increases are net positives with limited downsides to overall employment., etc.
 
ColemanwastheGOAT said:
If paying more is good for everyone, why not pay even more? What's the cut-off? Why is there a cut-off? What happens if you exceed the cut-off?
Click to expand...

Paying a living wage. A wage where someone who is working can afford...

"by living wages I mean more than a bare subsistence level-I mean the wages of decent living."

That's what FDR's goal was when it was first created. So you can stop with your dumb "Why not $100 an hour!!?" garbage argument now.
 
jk7707 said:
Paying a living wage. A wage where someone who is working can afford...

"by living wages I mean more than a bare subsistence level-I mean the wages of decent living."

That's what FDR's goal was when it was first created. So you can stop with your dumb "Why not $100 an hour!!?" garbage argument now.
Click to expand...

Subsistence level means living hand to mouth. Even min wage workers make in the US make well above subsistence level wages.
 
avenue94 said:
Because there is a point of diminishing returns at which the labor market and economy can absorb increases. The cut off is determined by studies of past wages as well as simulations of what would happen. As has been repeatedly said, and I assume you ignored, the economist consensus at this point is most decent sized minimum wage increases are net positives with limited downsides to overall employment., etc.
Click to expand...

Oh we doing the 'consensus' thing again lol. Same playbook for every argument.
 

California's New Minimum Wage Law Triggers Massive Layoffs for Fast Food Workers©Wikimedia Commons
In California, the fast food industry is undergoing significant changes as a new $20 minimum wage law takes effect on Monday April 1st.
According to a report by The Wall Street Journal, restaurant chains, particularly pizzerias, are preparing for this adjustment by reducing their workforce. These businesses plan to cut hundreds of jobs, reduce working hours, and halt new hiring to cope with the increased labor costs. This development comes as more restaurant chains brace for the financial impact of the wage increase.
Click to expand...

www.hoover.org

California Loses Nearly 10,000 Fast-Food Jobs After $20 Minimum Wage Signed Last Fall

Last September, Gov. Gavin Newsom signed California Assembly Bill 1287 into law, which includes a $20 per hour minimum wage for fast-food workers and a fast-food regulatory council which has the authority to raise the industry’s minimum wage annually. But between last fall and January...
www.hoover.org www.hoover.org

Worked a charm. Gj guys.
 
ColemanwastheGOAT said:
Oh we doing the 'consensus' thing again lol. Same playbook for every argument.
Click to expand...
Do you have a better idea on assessing the economic impact of minimum wage increases than peer reviewed research from experts in the field?
 
ColemanwastheGOAT said:



www.hoover.org

California Loses Nearly 10,000 Fast-Food Jobs After $20 Minimum Wage Signed Last Fall

Last September, Gov. Gavin Newsom signed California Assembly Bill 1287 into law, which includes a $20 per hour minimum wage for fast-food workers and a fast-food regulatory council which has the authority to raise the industry’s minimum wage annually. But between last fall and January...
www.hoover.org www.hoover.org

Worked a charm. Gj guys.
Click to expand...
And yet unemployment effectively stayed flat in the state (slightly down due to economic slow down). Sounds like the labor market adjusted and absorbed these workers.
 
You must log in or register to reply here.

Latest posts

Forum statistics

Threads
1,238,452
Messages
55,560,978
Members
174,820
Latest member
GringoRonin

Share this page

Back
Top