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Discussion: (8 comments)

  1. Raising the minimum wage will cause an explosion of innovation in automation, robotics, and information technology.

    The Baxter Robot costs $22,000, and can work for as little as $1/hour. Increasing the minimum wage to $9/hour simply means that the Baxter breaks even sooner than expected, which will cause more Baxters to be purchased by manufacturers, which in turn drives innovation to create futures versions that cost under $22K, but work even cheaper (Moore’s Law)..

    Increasing the minimum wage will cause a huge explosion of innovation in automation and robotics.

    1. John Dewey

      Not sure if this is a serious comment or not.

      I don’t agree that raising the minimum wage will cause an explosion of innovation. It will cause some jobs to be automated, and others to be offshored. But innovation will continue “exploding” regardless of the level of the minimum wage. The big issue for the U.S. is whether government intervention in free markets prevents the U.S. from participating in the global innovation explosion.

  2. About 50-70% of adult women will support a minimum wage increase to $9, $12, or even $15/hour. This includes women who got an ‘A’ in their college economics course.

    Getting an ‘A’ in a course can be achieved by memorization for short-term exam passage. But that does not mean the knowledge is internalized.

    Yep, 50-70% of women would support a minimum wage increase (so would 10-20% of men, but that is still far less than a majority). Women go on short-term emotion than basic logic, even if they passed an economics course in the past. Once that grim truth is recognized, you will see why an advanced democracy like ours is in the economic shambles it is in.

  3. Benjamin Cole

    I don’t mind getting rid of the minimum wage.

    I do think there ought o be a maximum wage on lawyers, and they purposely limit admission to the bar, of whatever state they are in.

    And why does everyone have to be a full-fledged lawyer to practice even routine types of law. In Great Britain they have different gradients of lawyers..

    Really law should become a pink-collar ghetto, max pay $40 an hour…..

    Indeed, all this obsession with the minimum wage seems besides the point, given the tiny sliver of workers at the minimum wage it is not much of an issue.

    Whereas the chronic sandbagging and parasitism of lawyers is a major drain on anyone who is misfortunate enough to get caught in lawsuit…..

    1. Setting a maximum wage for lawyers, or anyone else for that matter, is wrong. It reveals an intense desire to control others that you should give up. Rather, the barriers to entry and exit in any industry should be removed, which would allow demand by consumers of such goods and services and the available supply to set prices. By the way, lawyers are by no means the worst rent seekers. Doctors and the medical industry are by far the worst.

      1. Ah, Greg, spoken like a man who does NOT have a folder filled with numerous class-action lawsuit notices, actions wherein I am a incidental plaintiff, wherein the usual outcome is millions of dollars for the lawyers, nothing for me (my portion of the “settlement” is so small it doesn’t warrant writing a check).

        I am included because I own stocks or bought products or used services. (If you do NOT have numerous such lawsuits under your belt, howEVER have you avoided them?!)

        Worse are the defensive actions doctors are forced to take–extra, possibly expensive, tests or changing procedures (John Edwards’ lawsuit led to doctors performing more Cesarian-section baby deliveries, which are more expensive and more dangerous than the natural method), as well as the precautions manufacturers take (ever read a “Warning!” that caused you to laugh at its absurdity?).

        Lawyers become quite wealthy but their cost to the economy must be in the billions of dollars.

        Law schools spew out lawyers far in excess of what’s needed; those lawyers must then find a way to make a few dollars. The oversupply has created a forced, manufactured demand.

        Doctors and the medical industry just don’t have the ability to impose that big a cost to society.

  4. One aspect of the minimum wage is seldom discussed — many earning minimum wage ALSO receive tips. Many states mandate a full minimum wage for such workers. In CA we mandate a $8 wage.

    Hence in CA we have waiters easily making $15-$30 (or more) an hour. That’s why you’ll find so many college educated people waiting on you in CA restaurants — a huge misallocation of human capital. And this was going on BEFORE the recession hit.

    And catch this — states requiring minimum wage for such “tip” employees force restaurants to raise their food prices. Given that 15% is the minimum “non-insulting” tip expected, patrons are expected to pay a tip on the minimum wage of the employee (hidden in the restaurant bill).

    Thanks to quality prepared dishes available in Costco and grocery stores, my family seldom eats a “sit down” meal outside the home any more.

    That trend doesn’t bode well for restaurants and their employees. Oh well.

  5. MacDaddyWatch

    UNIONS WILL ALSO DEMAND A WAGE HIKE…

    …in order to maintain their usual spread/premium to the new hourly rate. The hike is nothing but more payola to those who got him elected. Obama doesn’t give a damn about the lowest end, least educated and least experienced of the middle class. The UR doesn’t concern him.

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