Seattle's just proved (again) that central planning of the economy always leads to pain for the people it's meant to help
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FightForFifteen

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Seattle's just proved (again) that central planning of the economy always leads to pain for the people it's meant to help

By Goran_K following x   2017 Jun 28, 10:42am 899 views   17 comments   watch   quote     share  


https://www.washingtonpost.com/news/wonk/wp/2017/06/26/new-study-casts-doubt-on-whether-a-15-minimum-wage-really-helps-workers/?utm_term=.be192fdab5e4

Seattle, along with LA, took the lead in the past couple of years by implementing a higher minimum wage than the Federal standard, the nationally celebrated #FightForFifteen chant you heard at numerous rallies in McDonalds or Walmart parking lots.

We now have 3 years of data from Seattle, and here are the results according to left leaning Washington Post:

- Employers have reduced hours
- Held off on new hires
- Reduced hours for current employees
- Let go of employees

According to the University of Washington, which was commissioned by the Seattle City Council to evaluate the effects of the higher minimum wage, "the costs to low-wage workers in Seattle outweighed the benefits by a ratio of three to one, according to the study."

On the whole, the study estimates, the average low-wage worker in the city lost $125 a month because of the hike in the minimum.


Photo: Dumb Idiot who lead the charge for $15 minimum wage in Seattle.

Socialism, creating more poverty than any economic system of the modern era.

1 Goran_K   ignore (1)   2017 Jun 28, 10:48am   ↑ like (2)   ↓ dislike (0)     quote        

Even Nate Silver and 538 have jumped off the minimum wage bandwagon.

https://fivethirtyeight.com/features/seattles-minimum-wage-hike-may-have-gone-too-far/

In January 2016, Seattle’s minimum wage jumped from $11 an hour to $13 for large employers, the second big increase in less than a year. New research released Monday by a team of economists at the University of Washington suggests the wage hike may have come at a significant cost: The increase led to steep declines in employment for low-wage workers, and a drop in hours for those who kept their jobs. Crucially, the negative impact of lost jobs and hours more than offset the benefits of higher wages — on average, low-wage workers earned $125 per month less because of the higher wage, a small but significant decline.

2 BoomAndBustCycle   ignore (0)   2017 Jun 28, 10:56am   ↑ like (0)   ↓ dislike (0)     quote        

$125 less a month for how much free time gained? I would trade $125 for a Friday off a month with my kids in a heartbeat!

To be fair I make $125 in two hours.

3 Goran_K   ignore (1)   2017 Jun 28, 10:59am   ↑ like (2)   ↓ dislike (0)     quote        

BoomAndBustCycle says

$125 less a month for how much free time gained? I would trade $125 for a Friday off a month with my kids in a heartbeat!

To be fair I make $125 in two hours.

Well you don't fall into the low wage bucket.

$125 for someone working at McDonalds or Walmart could be 1/3 of their weekly pay.

The Fight for Fifteen movement will lead to more unemployment and less money in the pockets of the poor. It is literally creating more poverty.

4 zzyzzx   ignore (2)   2017 Jun 28, 11:03am   ↑ like (2)   ↓ dislike (0)     quote        

BoomAndBustCycle says

$125 less a month for how much free time gained?

I'm guessing that nearly 100% of these low wage workers would rather have the $125 more per month.

5 Strategist   ignore (1)   2017 Jun 28, 11:07am   ↑ like (1)   ↓ dislike (0)     quote        

Goran_K says

- Employers have reduced hours

- Held off on new hires

- Reduced hours for current employees

- Let go of employees

According to the University of Washington, which was commissioned by the Seattle City Council to evaluate the effects of the higher minimum wage, "the costs to low-wage workers in Seattle outweighed the benefits by a ratio of three to one, according to the study."

On the whole, the study estimates, the average low-wage worker in the city lost $125 a month because of the hike in the minimum.

And what about the higher fast food prices etc that everyone has to put up with?
All these idiots did was to create a catalyst for the robots to come marching in and create an even greater disaster for the teenagers. Teens should be in school, universities, or training at a job. Now more of them will be in the streets committing crime.

6 curious2   ignore (1)   2017 Jun 28, 11:10am   ↑ like (0)   ↓ dislike (0)     quote        

Goran_K says

Crucially, the negative impact of lost jobs and hours more than offset the benefits of higher wages — on average, low-wage workers earned $125 per month less because of the higher wage, a small but significant decline.

PatNet had a debate about this policy at the time. I remember trying to explain economic considerations to @CL. Regressive identitarian liberalism is a secular faith-based government, refusing on general principle to gather data and do math and think through consequences, instead insisting on whatever belief people want emotionally to identify with and be seen supporting.

7 KimJongUn   ignore (0)   2017 Jun 28, 11:11am   ↑ like (1)   ↓ dislike (0)     quote        

I heard on the NPR yesterday, that one of the things which fucked Puerto Rico bigly was Federal minimum wage. Because for Puerto Rico $7.25 per hour is actually a very generous wage. And this shit has FUBARd their labor market and caused persistent high unemployment.

8 Goran_K   ignore (1)   2017 Jun 28, 11:13am   ↑ like (0)   ↓ dislike (0)     quote        

zzyzzx says

I'm guessing that nearly 100% of these low wage workers would rather have the $125 more per month.

Yup, $125 could mean the difference between a paid bill or delinquency.

Another unintended consequence of #FightForFifteen

You simply cannot use central planning to get around the realities of the Supply & Demand Curve. Minimum Wage philosophy is the result of seeing the economy as one stagnant pie rather than a pie that grows bigger and larger (which it has for the past 200+ years of US History).

9 KimJongUn   ignore (0)   2017 Jun 28, 11:14am   ↑ like (1)   ↓ dislike (0)     quote        

Want better wages for low skill workers? Kick out the illegals.

10 Goran_K   ignore (1)   2017 Jun 28, 11:16am   ↑ like (1)   ↓ dislike (0)     quote        

curious2 says

PatNet had a debate about this policy at the time. I remember trying to explain economic considerations to @CL. Regressive identitarian liberalism is a secular faith-based government, refusing on general principle to gather data and do math and think through consequences, instead insisting on whatever belief people want emotionally to identify with and be seen supporting.

CL had a good heart, but didn't quite grasp how an actual economy worked.

The truth of the matter is, we have supply, and demand. The most efficient way found to man kind to reach equilibrium, and help the MOST people find prosperity, has always been free market capitalism.

11 Goran_K   ignore (1)   2017 Jun 28, 11:33am   ↑ like (0)   ↓ dislike (0)     quote        

Strategist says

And what about the higher fast food prices etc that everyone has to put up with?

All these idiots did was to create a catalyst for the robots to come marching in and create an even greater disaster for the teenagers. Teens should be in school, universities, or training at a job. Now more of them will be in the streets committing crime.

People need to realize that minimum wage jobs are not meant to be permanent employment. They are transitive jobs for people looking for experience, or working part-time while going to school, but certainly not a final career destination.

Whenever I see a sign like this:

I already know the person holding it is a complete idiot who thinks they are entitled to more than they are worth. Because if they were worth "more", why couldn't they find employment that pays them more?

Like the lady who became the face of the McDonalds protest in LA claiming "I've worked for McDonalds for 15 years and haven't gotten a raise", really? You worked at McDonalds for 15 years and couldn't find an employer who would pay you more for your skills?

Guess you better THANK McDonalds for keeping you around!

12 Quigley   ignore (1)   2017 Jun 28, 11:41am   ↑ like (2)   ↓ dislike (0)     quote        

That is pretty sad, working for McDonalds for fifteen years. I mean, I worked there for a year and was totally done, and I was 17 at the time! Every job since then has paid more.
But then I've been acquiring new skills this whole time, so I'm worth more than that 17 year old kid I used to be.

13 lostand confused   ignore (0)   2017 Jun 28, 11:42am   ↑ like (1)   ↓ dislike (0)     quote        

I never understand their logic. YOu want 15 bucks an hour fine. But you also want unlimited illegal aliens who are ready to work under the table for far less-so how does that compute in their heads??

14 Strategist   ignore (1)   2017 Jun 28, 11:42am   ↑ like (1)   ↓ dislike (0)     quote        

Goran_K says

LOL. If you are too stupid to figure out why some people get paid more, and why some people get paid less, you deserve minimum wage and nothing more.

15 Goran_K   ignore (1)   2017 Jun 28, 11:46am   ↑ like (1)   ↓ dislike (0)     quote        

lostand confused says

I never understand their logic. YOu want 15 bucks an hour fine. But you also want unlimited illegal aliens who are ready to work under the table for far less-so how does that compute in their heads??

The same people who say "Not all Muslims are terrorist" whenever ISIS mows down a dozen people with a van, but will also claim white people are the beneficiaries of "privilege" even if you're a 38 year old, father of 3, who works in a coal mine.

Progressive leftist are insane, and literally drove me completely away from the Democrat party.

16 The Original Bankster   ignore (2)   2017 Jun 28, 8:47pm   ↑ like (0)   ↓ dislike (1)     quote        

Im tired of these fucking chinks coming to the us and telling us we dont need laws.

17 BlueSardine   ignore (3)   2017 Jun 28, 9:06pm   ↑ like (0)   ↓ dislike (0)     quote        

it's not their fault.
Too much rain saturates the brain...


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