Comments by "whyamimrpink78" (@whyamimrpink78) on "Minimum Wage Protests Break Out In 270 Cities" video.
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+kristabella222 I based that $4.50 off of the cost of living in my city. If you have four adults living in a one bedroom apartment, all splitting rent and utilities evenly, and paying for their own healthcare, and gas (if they even drive), and food, then you have $4.50. And 4 people living together is not extreme. It happens. People go farther to save money. I knew of 3 guys in a studio. My co-worker while living in so cal going to college lived in a 2 bedroom with 11 other guys. That is why the "living wage" is subjective.
What businesses are seeing huge profits? You might be able to point towards a few corporations (who have to keep shareholders happy mind you), but that is it. Even at that, if you were to look at Walmart, they are at 3--5% profit margins. Most businesses work off of very thin profit margins. They simply can't afford higher wages.
On stagnate wages, you have to
1. Look up Skilled Biased Technological Change
2. Businesses pay more in healthcare benefits
3. Consider that for the past few decades women involvement in the workforce has increased 15% since the 70s, men has dropped around 10%. Men get paid more than women (another topic all together)
4. Productivity increase means more wealth and cheaper goods and services that are better. Consider that you smart phone has more computing power than what put a man on the moon in the late 60s. People have more wealth overall
5. Disposable income is 7 times higher than it was in the 70s.
While people may seem to be earning the same wage, as a whole they are not.
"When wages are higher people have more disposable income which stimulates the economy. "
Stimulate what? Buying 2 dozen eggs instead of one for the month? That does not grow the economy. That is why there is not many, if any politician that supports raising the min. wage based off of growing the economy. Even Christina Romer said raising the min. wage will, at best grow the economy. 0.02%.
Now this is not to say that all has been good. I for one want to improve the situation as well. But to say it has all been bad, and to basically give out, at best deceptive information (and really wrong information in several ways) is not the solution to take. And with the min. wage, considering it has never been linked to any economic growth, but has been linked to job loss and price increases, it is not a route to take.
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