Posts tagged with: minimum wage

Photo courtesy of flickr

Photo courtesy of flickr

This past week, one of the rising political figures in the Democratic Party, Mayor Peter Buttigieg of South Bend, Indiana penned an op-ed for the South Bend Tribune arguing that raising the minimum wage is “the right thing to do.”

Mayor Buttigieg, cites three reasons why he believes raising the minimum-wage is the right thing to do: It’s good for business, good for the economy, and good for family.  All these “goods” assume that raising the minimum-wage does not reduce employment.

So what do basic economic principles say about raising the minimum wage? Take a look at this graph.

RMUqwRR (more…)

dncplatformEarlier this week, I talked about the religious and economic implications of the RNC platform. As the DNC wraps up, it is time to examine the relevant points of the Democratic platform.

Innovation & Entrepreneurship

We need an economy that prioritizes long-term investment over short-term profit-seeking, rewards the common interest over self-interest, and promotes innovation and entrepreneurship.

Minimum Wage

Democrats believe that the current minimum wage is a starvation wage and must be increased to a living wage. No one who works full time should have to raise a family in poverty. We believe that Americans should earn at least $15 an hour and have the right to form or join a union. We applaud the approaches taken by states like New York and California. We should raise and index the minimum wage, give all Americans the ability to join a union regardless of where they work, and create new ways for workers to have power in the economy. We also support creating one fair wage for all workers by ending the sub-minimum wage for tipped workers and people with disabilities.

Democrats support a model employer executive order or some other vehicle to leverage federal dollars to support employers who provide their workers with a living wage, good benefits, and the opportunity to form a union. The $1 trillion spent annually by the government on contracts, loans, and grants should be used to support good jobs that rebuild the middle class.

Poverty

We believe that today’s extreme level of income and wealth inequality—where the majority of the economic gains go to the top one percent and the richest 20 people in our country own more wealth than the bottom 150 million—makes our economy weaker, our communities poorer, and our politics poisonous.

We reaffirm our commitment to eliminate poverty. Democrats will develop a national strategy to combat poverty, coordinated across all levels of government. We will direct more federal resources to lifting up communities that have been left out and left behind, such as the 10-20-30 model, which directs 10 percent of program funds to communities where at least 20 percent of the population has been living below the poverty line for 30 years or more. We will also focus on communities that suffer from persistent poverty, including empowerment zones and areas that targeted government data indicate are in persistent poverty.

Democrats will protect proven programs like the Supplemental Nutrition Assistance Program (SNAP)—our nation’s most important anti-hunger program—that help struggling families put food on the table. We will also help people grow their skills through jobs and skills training opportunities.

Religious Liberty

Opposes attempts to impose a religious test to bar immigrants or refugees from entering the United States.

Supports a “progressive vision of religious freedom that respects pluralism and rejects the misuse of religion to discriminate.”

Supports protecting both Muslims and religious minorities and the “fundamental right of freedom of religion” in the Middle East. (Read more here)

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image1We live, work, and consume within an increasingly grand, globalized economy. Yet standing amidst its many fruits and blessings, we move about our lives giving little thought to why we’re working, who we’re serving, and how exactly our needs are being met. Adam Smith’s “invisible hand” feels more invisible than ever.

In response to our newfound economic order, big and blurry as it is, many have aimed to pave paths toward more “communitarian” ends, epitomized by recent waves of “localist consumerism,” “artisanal shops,” and “social entrepreneurship.” Such efforts can be tremendously fruitful, and insofar as they meet real human needs, we should heed their resistance to blind marches toward “progress.”

I only wish that such movements would appreciate the broader range of possible solutions. The slow and local is all well and good, but something as mundane and mainstream as a local McDonald’s can serve community needs just as well as the trendy mom-and-pops of the future. The big and global is not necessarily the enemy of the small and local.

As Chris Arnade demonstrates through a series of stories, for many low- and middle-income areas, “McDonald’s have become de-facto community centers and reflections of the surrounding neighborhood,” offering a hub for the very sort of social fabric-weaving that crunchy communitarians crave. (Note: I was an employee and then shift manager of a McDonald’s during my teenage years.)

One can be resistant to the nutritional risks of the food — just as I remain resistant to the budgetary risks of overpriced “artisanal donuts” — and still perceive the value that such enterprises bring to local communities everywhere: economic, social, and (dare I say) spiritual. (more…)

no-signWhat just happened?

On May 18, the Obama administration announced the publication of a new Department of Labor rule updating and expanding overtime regulations.

Why did the overtime rule change?

Since the 1930s some white collar jobs (i.e., those performed in an administrative setting) have been exempt from the overtime requirement. The white collar exemption salary level was adjusted in 2004 to $455 per week or $23,660 a year. The new rule will entitle most salaried white collar workers earning less than $913 a week ($47,476 a year) to overtime pay.

The rule also updates the total annual compensation level above which most white collar workers will be ineligible for overtime. The final rule raises this level to the 90th percentile of full-time salaried workers nationally, or from the current $100,000 to $134,004 a year

The salary threshold will also automatically be updated every three years, beginning January 1, 2020. Each update will raise the standard threshold to the 40th percentile of full-time salaried workers in the lowest-wage Census region, estimated to be $51,168 in 2020.

How is overtime pay determined?
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chobani-ceoAs politicians continue to decry the supposed “greed” of well-paid investors, business leaders, and entrepreneurs — promoting a variety of reforms that seek to mandate minimums or cap executive pay — one company is demonstrating the value of economic freedom and market diversity.

Chobani, a privately owned greek yogurt manufacturer, recently announced it will be giving a 10% ownership stake to its roughly 2,000 full-time workers, a move that could result in hundreds of thousands, if not millions, of dollars for some employees.

According to the New York Times:

Hamdi Ulukaya, the Turkish immigrant who founded Chobani in 2005, told workers at the company’s plant here in upstate New York that he would be giving them shares worth up to 10 percent of the company when it goes public or is sold.

The goal, he said, is to pass along the wealth they have helped build in the decade since the company started. Chobani is now widely considered to be worth several billion dollars.

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Terminator-2-Judgement-Day-posterI oppose implementing Skynet and increasing minimum wage laws for the same reason: to forestall the robots.

It’s probably inevitable that a T-1000 will return from the future to terminate John Connor. But there is still something we can do to prevent (at least for a time) a TIOS from eliminating the cashier at your local McDonalds.

In Europe, McDonalds has ordered 7,000 TIOSs (Touch Interface Ordering Systems) to take food orders and payment. In America, Panera Bread will replace all of their cashiers with wage-free robots in all of their 1,800 nationwide locations by 2016. There is even a burger-making robot that can churn out 360 gourmet hamburgers per hour.

I, for one, welcome our new fast-food robot overlords. I’m just not ready for them yet.
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outofworkIn almost every long-term clash over a cultural or political policy, there comes a point that I’d call the “comfort-level concession.” If the agenda of one side has been won — or has at least moved sufficiently toward achieving victory — the winning side often feels comfortable making concessions about claims that they may have previously denied.

Initially, they will firmly state, “The claims of our opponents are overblown; the detrimental effect they predict will never happen.” Once they’ve won the public over to their side, though, they become comfortable enough to admit the truth: “Well, maybe our critics were about the detrimental effect. But so what?”

This is where we are in the debate over a $15 minimum wage. For years, critics of wage floors have complained that raising the minimum wage to that level would increase unemployment. And for years supporters of the minimum wage claimed that wouldn’t happen. However, now that the $15 wage has been approved in two of the largest states in the union — California and New York — the advocates are willing to admit, “Yeah, it will lead to increased unemployment. But so what?”

If you think I’m exaggerating, consider a recent headline at the Washington Post: “The $15 minimum wage sweeping the nation might kill jobs — and that’s okay

In the article Lydia DePillis notes the very shift in response I outlined. Step #1: Critics complain about the detrimental impact, and are assured it will not happen:
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