It's high-time that we doubled the National Minimum-Wage in America!

Yeah, and if economics were as simple as child's play, there would be no discussion on this forum.

Look at the forum's title, it says "Economics & Trade". Get it ... ?

 

It is quite simple when dealing with labor cost, supply and demand, you artificiality raise something, what will happen?


You don't even have to go to skool to understand that one..

 

I gather you came into this Economics-forum to tell us how simple the subject is?

You are confusing the word "you". Going from singular to plural is a very w-i-d-e hop, skip and a jump! In your case it is the matter of raising prices in a "given economic context" - and I have already responded as regards the key importance of the economic context.

Good luck on that one - and enough-is-enough with your simplism ...

 

Zzzzz once a poster goes for the grammar and spelling ..it tells me you have nothing and lost a argument.


No critical thinking skills...

 

Why are there two threads essentially titled the same?

It's high-time that we doubled the National Minimum-Wage in America!
It's high-time that we doubled the National Minimum-Wage in America

I agree, there should be a minimum wage, except that it should be zero. There should be no government, Federal, State or local mandatory minimum wage at all. A person should be allowed to work for no pay at all should they desire to do so, and all wages should be what both the employer and employee are willing to accept paying and receiving. Payment for labour, both physical and mental should relate ONLY to the work to be performed, the value the employer is willing to expend and the willingness of the employee to perform it.

 

yes if you can interfere with the market for low wages why not interfere with all markets? Why not give everyone a huge wage increase or a huge price decrease?

 

Why should government be giving people anything at all?

 

because its so easy for them. All they have to do is pass a law giving everyone a 50% pay raise or 50% price reduction!! That's a whole lot easier and faster than trying to growing the economy 50%

 

Stimulus DOES NOT WORK, and HAS NEVER WORKED.

The United States is heading into another recession, because either the Fed keeps interest rates low, fueling a speculative bubble, or the Fed increases interest rates and the Federal government goes bankrupt. Negative interest rates do not exist, which is why every dollar borrowed during Obama's entire Presidency has been constantly floated in short term Treasury securities.

 

That really isn't why we are headed into a recession but we have both feet into the low interest trap for sure. We are heading into a recession because CEO's and CFO's are running out of games to play to pump their own stocks. I know of at least one major company that is doing it by extending supplier payments. They used to do it every 2 months, then it became three and now they are up to 5 months i.e. when you sell them a widget today, they don't want to have to pay you for it for 5 months.

 

I grew up in a business class family-the people who made America an economic giant before business schools and computerized systems capable of easily handling large inventories.

The recession I'm referring to is a speculative real estate bubble or a substantial cut to Federal spending, because one of those two will happen relatively soon if we don't truly get spending under control. Not the end of the world.

But back to the topic you brought up, my family has successfully run a business of immense profitability and razor thin overhead since 1949. Gimmicks are for college kids who don't know **** about business unless it came out of a textbook.

 

You must be young. Very young - to make such an archly wrong statement in an Economics Forum.

The last time it worked stupendously well is with Roosevelt who employed it to temper but not solve the 1930s depression. Government Spending mitigated unemployment from 1932 onward only somewhat. See here:


The damage-done to consumer spending by the crash of 1929 was more than just a "passing event". What finally corrected it was the massive spending of WW2.

Even Obama, having been gifted the Great Recession by Dunderhead Dubya, had to call upon Stimulus Spending to spike a skyrocketing Unemployment Rate. Which he accomplished by the ARRA-spending bill of $831B - which stopped-dead the exploding rate at 10% and turned downward.

Were he and a Dem-Congress rewarded for Quick Action? Nope, American voters gave the HofR to the Replicants in the 2011 elections. What colossal stoopidity! So, what happened? The Replicants refused any more stimulus-spending, instead they offered America "Austerity Budgeting" and stopped-dead the only proven remedy to create jobs!

The consequence of which was this (BLS Employment-to-population Ratio here):

What happened from 2010 onward with the HofR in control of the Replicants? Without stimulus-spending the E-to-p Ratio stagnated as just-enough-job-creations equaled job-reductions. The Ratio (at 58.5%) did not budge at all from 2010 to 2014 - four long, long years of employment-stagnation for America's working-class.

And that was Obama's fault! You gotta be kidding!

Finally, all by itself (at the end of 2014) the ratio started moving again upwards, whereupon America's version of an Errant Democracy gave the presidency to Donald Dork - who is now trying to take credit for Making America Great Again.

Which had started long before he even thought of running ...

 

There won't be a substantial cut in federal spending. They might stop spending as much in X so they can spend more on Y. As for real estate bubble, not likely. A bond bubble is more likely. As I have posted in various threads before, I keep my whole 401K in emerging markets for this reason. I ain't investing in Wall Street until the bottom falls out of the market again.

 

I paid $240,000 for my home in December, 2015, and at the time several other homes sold for $265k and $305k. New neighbors right across the street paid $480k first day on the market, and I got approved for a HELOC for $120,000. I'd call that a bubble.

 

Lmfao......


All we got was cute signs and trees,

 

Government spending during WWII didn't end the depression.

The labor movement significantly shrank the labor pool by legislative initiatives that banned child labor and limited the number of hours you could work in a day.

While my grandfather was off fighting the war, there wasn't much to spend money on board ship or on a tiny island in the Pacific, and my grandmother and great aunt were both working double shifts at the local munitions plant, living under strict rationing quotas for even the most basic necessities, and putting half their incomes into buying war bonds.

The combination of less competition in the labor market, a generation of extreme austerity, unprecedented household wealth, and manufacturers desperate to keep production levels up all combined into the perfect storm.

Obama's deficit spending costs us about $200 billion a year at rock bottom interest rates. Explain to me how that benefits people

 

and I paid about 40 cents on the dollar for my house in 2013, the people up the road paid about 50 cents on the dollar last year, and around the corner someone got full asking price in between. The market is largely localized. To get my 40 cents and the people up the road their 50 cents were auction prices. My assessed value only went up 1%ish between the purchase and now after I spent more that about 15% on may improvements. Fairly certain this will be my forever home so it really doesn't matter one way or the other.

 

The ARRA spending-bill ($831B) in 2009 - Obama's first year in office - spiked a skyrocketing unemployment rate at 10% that had been created by the Great Recession that started in Dubya's last years in office.

See that fact from the Bureau of Labor Statistics here:

When Obama asked an HofR for more spending money in 2012 to reignite the economy - what he and the nation got were lectures on Austerity Budgeting - aka Useless Nonsense: The austerity delusion (by Paul Krugman, 2015) - excerpt:

Where have you been the last 7-years - holed up in a cave ... ?

 

You're right!

It's a terrible lie that I've entered into the forum. Terrible, terrible.

It was actually - get this - Mickey Mouse ... !!!!!!!

 

I've never worried about market corrections, because you can typically see them coming, and as long as you're not a greedy **** sucker won't get burned.

So you're saying that $100 billion is all it took to prevent economic collapse?

 

And what makes that debt extra-special from any of the others if not the Great Recession, where any rational minded PotUS would try to stimulate the economy?

From here: U.S. Debt by President: By Dollar and Percent

Obama was fighting a Great Recession so spending to support the unemployed was not a sin - and they were a great many. So, and this is the point, aside from magnitude was it really any different in habit than any previous PotUS?

Dubya built his deficit based upon a senseless war over in the sandbox ...

 

Austerity, you mean the austerity that Obama took credit for?




President Obama 2/19/13: “Over the last few years, both parties have worked together to reduce our deficits by more than $2.5 trillion. More than two-thirds of that was through some pretty tough spending cuts.” (President Obama, “Remarks by the President on the Sequester,” The White House, 2/19/13)

President Obama 7/24/13: “And our deficits are falling at the fastest rate in 60 years.” (President Obama, “Remarks by the President on the Economy – Knox College, Galesburg, IL,” The White House, 7/24/13)

“Our deficits are falling at the fastest rate in 60 years. Deficits have been cut by almost half from the time I took office.” (President Obama, “Remarks By The President On The Economy — Warrensburg, Missouri,” University Of Central Missouri, The White House, 7/25/13)

“Our deficits are falling at the fastest rate in 60 years.” (President Obama, “Remarks By The President On The Economy — Jacksonville, FL,” Jacksonville Port, The White House, 7/25/13)

“Our deficits are falling at the fastest rate in 60 years.” (President Obama, “Remarks Of President Barack Obama Weekly Address,” The White House, 7/27/13)

“Our deficits are falling at the fastest rate in 60 years.” (President Obama, “Remarks By The President On Jobs For The Middle Class,” Amazon Chattanooga Fulfillment Center, The White House, 7/30/13)

President Obama 9/16/13: “But our deficits are now falling at the fastest rate since the end of World War II. I want to repeat that. Our deficits are going down faster than anytime since before I was born. By the end of this year, we will have cut our deficits by more than half since I took office.” (President Obama, The White House South Court Auditorium, C-SPAN, 9/16/13)

President Obama 10/2/13: “The deficits are coming down at the fastest pace since World War II. They’ve been cut in half since I came into office.” (President Obama, “Remarks by the President in a Town Hall on Innovation — Los Angeles, CA,” The White House, 10/9/14)

President Obama 11/19/13: “And since I took office, we have now cut our deficits by more than half.” (President Obama, “Remarks By The President To The Wall Street Journal CEO Council,” The White House, 11/19/13)

President Obama 1/28/14: “Our deficits – cut by more than half.”(President Obama, State Of The Union Address, The White House, 1/28/14)

President Obama 9/1/14:“We cut our deficits by more than half.” (President Obama, “Remarks By The President At Milwaukee Laborfest,” The White House, 9/1/14)

 

Ok, but then there should be a maximum business profit and a maximum income.

 

Because it's a stupid, simplistic, naive idea.

 

why is it stupid???