WHY have wages NOT kept up with skyrocketing productivity gains?

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GREED is a SIN

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Mar 20, 2013
 

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No matter how you calculate it, minimum wage has flat-lined over the past 50 years. That's the finding in a 2012 study from the Center for Economic Policy Research. The study reads, "By all of the most commonly used benchmarks - inflation, average wages, and productivity - the minimum wage is now far below its historical level." If wages had kept up with productivity gains since 1968, it would be nearly $22 dollars an hour.


Senator Elizabeth Warren cited the study in a Senate Committee Hearing last week, calling for the national minimum wage to be tripled. While questioning University of Massachusetts Amerherst Professor, Dr. Arindrajit Dube, who has studied the economic impact of minimum wage, Warren said, "with a minimum wage of $7.25 an hour, what happened to the other $14.75? It sure didn't go to the worker."


Dube said if wages had kept pace with income going to the top 1%, today it would stand at $33 an hour. Productivity gains show Americans are working harder than ever, and profits have skyrocketed over the last half century. It's time businesses in our nation start rewarding that hard work, and start paying workers a living wage.

Since: Dec 12

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Mar 20, 2013
 

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GREED is a SIN wrote:
No matter how you calculate it, minimum wage has flat-lined over the past 50 years. That's the finding in a 2012 study from the Center for Economic Policy Research. The study reads, "By all of the most commonly used benchmarks - inflation, average wages, and productivity - the minimum wage is now far below its historical level." If wages had kept up with productivity gains since 1968, it would be nearly $22 dollars an hour.
Senator Elizabeth Warren cited the study in a Senate Committee Hearing last week, calling for the national minimum wage to be tripled. While questioning University of Massachusetts Amerherst Professor, Dr. Arindrajit Dube, who has studied the economic impact of minimum wage, Warren said, "with a minimum wage of $7.25 an hour, what happened to the other $14.75? It sure didn't go to the worker."
Dube said if wages had kept pace with income going to the top 1%, today it would stand at $33 an hour. Productivity gains show Americans are working harder than ever, and profits have skyrocketed over the last half century. It's time businesses in our nation start rewarding that hard work, and start paying workers a living wage.
First, I wouldn't trust anything coming from the CEPR. The founders of that think tank are borderline if not full fledged socialists. Second Elizabeth Warren Ms. I'm Native American and has been proven she's not and now doesn't have the courage to list herself as one http://conservativebyte.com/2013/01/elizabeth...

Regarding the minimum wage, it has been proven that raising the minimum wage has an adverse effect on teens and those just entering the job market. It has also been proven that very few American families breadwinners are working for minimum wage. Now if you raise the minimum wage what happens to product cost? It increases. Why? Because the largest cost in any business is labor. If I have to pay someone 22.00 as opposed to 7.25 where is that money going to come from? That's right the consumer. I am going to have to pass that cost on to the consumer. Then what do you have? Inflation and the people earning 22.00 are still going be in the same position relative to before. Its the classic dog chasing its tail scenario. http://www.aei-ideas.org/2013/02/lets-review-...
http://www.heritage.org/research/reports/2013...
GREED is a SIN

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Mar 20, 2013
 

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EJCDad wrote:
<quoted text>
Regarding the minimum wage, it has been proven that raising the minimum wage has an adverse effect on teens and those just entering the job market.


Proven by whom?? Kindly site your source, so we can all see whether or not THAT source is trustworthy.
EJCDad wrote:
<quoted text>
It has also been proven that very few American families breadwinners are working for minimum wage.
Again, by whom?? That's not what I heard. I've heard there are quite a lot people that are forced to be dependent on a minimum-wage job to provide for their families. Even moreso in the past few years.
EJCDad wrote:
<quoted text>
Now if you raise the minimum wage what happens to product cost? It increases. Why? Because the largest cost in any business is labor. If I have to pay someone 22.00 as opposed to 7.25 where is that money going to come from? That's right the consumer. I am going to have to pass that cost on to the consumer. Then what do you have? Inflation and the people earning 22.00 are still going be in the same position relative to before. Its the classic dog chasing its tail scenario. http://www.aei-ideas.org/2013/02/lets-review-...
http://www.heritage.org/research/reports/2013...
Gimme a break. Those articles are slanted. Raising the minimum wage to what it SHOULD be in relation to productivity gains ethically should not raise production costs in the least.....that pay increase should RIGHTFULLY come from the greedy over-inflated profits that they've made all this time while underpaying employees. Third quarter profits reached RECORD HIGHS last year!! They've been making THEIR money off the sweat of their workers all of this time, their profits increasing and increasing, yet the worker have seen no increase in pay? Yeah, THAT'S the "American Dream". pfft. You already know that if given the chance, most companies would return to slave labor faster than you can say NAZI(many already DO: http://www.huffingtonpost.com/news/slave-labo... ), so THEY are the ones spouting off all this propaganda about how raising the minimum wage hurts everyone.

I just don't get it. So many are constantly bitching about people on welfare, yet at the same time, those SAME people want to block each and every chance for anyone to make something of themselves and NOT be dependent on handouts. How in the hell is a teenager who WANTS to work AND wants to go to college to better her or himself and who's parents can't possibly help financially, be able to save for college on $7.35/hr?? Let alone all the adults who have to support a family on a piddly minimum wage job because all those "job creators" that got all those special "tax breaks" have provided NO jobs to Americans, but instead shipped said jobs overseas so that they can make even MORE massive profits off the sweat of employees/slaves that they only have to pay $.65/hr.

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Mar 21, 2013
 

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