How is a $15 federal minimum wage connected to Covid relief?

The shelf price of a consumer good is the result of the sum total of all inputs in the context of the commercial environment. Price elasticity of demand concludes that more dollars chasing the same goods results in an increase of the retail price of those goods. You can track this over time to truly get a sense of the effect of increased input cost by looking at that gallon of milk 50 years ago. It was probably $0.39. And 100 years ago, it was probably $0.05. Why is it now $3.00? Because incremental input differentials -- driven primarily by wages -- have slowly moved that price needle as wages have increased. It does become a a chicken and egg argument at some point, but it is indisputable that wages and consumer prices are directly proportional.

You could set the m/w at $50,000/hr. and though low-wage earners would enjoy a temporary boost in buying power, the economy will eventually catch up and they will remain ever at the bottom unless they obtain a skill that substantively increases the value of their labor. If you really want to help the poor, stop tossing them crumbs -- which is a disincentive -- and start showing them a better way forward, ie education, skills training, etc..

 

What makes people believe that a federal one size fits all is appropriate for every region of the country?

Also why do these same people place no trust in the states to determine what’s right for the people of their state?

 

The reality is people in poverty are fairly content. They have access to food, education, medicine, entertainment etc. From their perspective they arent living as miserable an existence as you think. Wealthy people look down on the upper middle class folk the same way. Living in a 1800 sq foot home that you maintain yourself? Driving a 7 year old car that you repair? Poverty is all relative. When I lived in poverty from birth up unto college I didn't think anything of it. It was kind of cozy in a way. Now when I visit my old neighborhood I cant believe how anyone could live there. In reality many of them are happier than most people on this forum.

 

Actually the economy was destroyed by the way government addressed the virus. These shut-downs and such were irrational.

 

Maybe because the law of supply and demand is real.

 

"How is a $15 federal minimum wage connected to Covid relief?"

unless we want another 1929, we need to do something

 

Inflation weakens the dollar. China is hoping we raise the minimum wage up to $50 an hour. Bye bye fried chicken, hello fried rice!

 

title of article that you hid away

"Biden unveils $1.9T plan to stem COVID-19 and steady economy"

https://apnews.com/article/joe-biden-coronavirus-action-plan-3d8d5841bb9098a81ad9452fb2619024

 

Correct. However the biggest driver of inflation will be debt.

 

that is what they been saying for 80 year everytime the min wage rises, been wrong every time

inflation will happen cause of our huge debt.... the min wage needs to be raised as it's past due and not keeping up with inflation

 

What are you talking about???? We didnt have any social programs in 29. Now there is a program for everything. As a child my mother's family ate turnips for an entire winter during the depression. I dont think anyone will endure that today.

 

The retail price of any good (or service for that matter) is the sum total of inputs. Wages are one input. COGS is another. Transportation, compliance, debt service, insurance, taxes, infrastructure, spoilage, etc., all contribute to the sticker price. The interesting thing about wages is that when you raise the wage floor, wages above that threshold will also eventually realize an organic rise as prices move upward. So not only is McDonalds paying the burger flippers more money, but the Brinks guy who comes for the cash gets a bump, and so does the Taystee bread delivery driver, the refrigerator repair person, etc.. All these wages are pushed into the system and absorbed by all users of the system. This can result in reduced profits or increased prices. It is usually a mix of both. This is known as price elasticity of demand. More dollars chasing the same goods = higher prices. Econ 101 really.

If you really want to help the poor, stop tossing them crumbs -- which is a disincentive -- and start showing them a better way forward, ie education, skills training, etc.. so they can substantively increase the real value of their labor in a market economy.

 

The federal government has no business instituting a federal minimum wage.

 

No. The biggest driver will be injecting 10 trillion into the economy.

 

if we do nothing, we will have another 1929, your right, we did nothing back then.... thanks for proving my point

 

That is realized by injecting more money we don’t have ......debt.

 

For your argument to be correct, you'd have to point to retail pricing stasis -- but that is not the case. Prices and wages are directly proportional. The more dollars chasing the same goods = higher prices. The problem with relying on min. wage as a means of supporting "the poor" is that it insures they stay "the poor." If you really want to help the poor, stop tossing them crumbs -- which is a disincentive -- and start showing them a better way forward, ie education, skills training, etc.. so they can substantively increase the real value of their labor in a market economy.

 

So you are for raising minimum wage but not these stimulus bills?

 

paying them less than a living wage insures they stay poor, only the right thinks paying people less makes them richer

 

You seem to think the law of supply and demand does not exist. Maybe liberals should stop importing cheap labor and see what happens to wages. Just sayin.

Next from the Harris/Bidon cult: wage and prices controls.

 

The "poor" dont think they are poor.

 

Getting close to too late.

 

Hitler made it work. Isnt that interesting. The only guy that made socialism work economically was hitler. That's a fascinating thought.

 

Exactly. College is not all its made out to be and nobody would go if they can make $15 flipping burgers.

 

The crumbs of min. wage are actually what insures that.

Straw man fallacy, red herring fallacy,