General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMinimum Wage: Who Decided Workers Should Fall Behind?
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If workers at the bottom had continued to share in the economys growth in the years since 1968 as they had in the three decades before 1968, we would be looking at a very different economy and society. If the minimum wage had risen in step with productivity growth it would be over $16.50 an hour today.That is higher than the hourly wages earned by 40 percent of men and half of women.
It shouldnt seem strange that the wages of workers at the bottom rise in step with productivity, after all they do for many other workers even when the work has not in any direct way become more complex. For example, when a realtor is selling a $400,000 home rather than a $200,000 home it does not necessarily require any greater effort or skills. In fact, if we were talking about the years of the housing bubble, it may just be the case that the same home had doubled in price. Yet, the commission will be twice as much.
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As a practical matter we couldnt possibly raise the minimum wage any time soon to $16.50 without serious disruptions to the economy. One result would also be higher prices in the economy. Of course this is also the result of having doctors who average $250,000 a year and Wall Street bankers who can pocket many millions of dollars a year. Their income is a cost to everyone else.
Somehow the issue of higher prices and inflation is an important point when we discuss the wages of people getting $7.25 an hour to wash dishes but it is not supposed to enter into polite conversations when we talk about the most highly paid workers. That is a political choice, not an economic one...
Read more: http://www.cepr.net/index.php/op-eds-&-columns/op-eds-&-columns/minimum-wage-who-decided-workers-should-fall-behind
OceanEcosystem
(275 posts)They spend a tremendous amount of time in medical school. The lives and well-being of many people depend on their professional judgment. They must learn and retain a massive amount of information. They work hard. Plus, many of them are burdened with heavy student loans.
A $250,000 income for doctors sounds very reasonable to me. I can understand the complaints about some CEOs, but not doctors.
limpyhobbler
(8,244 posts)Minimum wage should a lot higher than $7.25.
Warren Stupidity
(48,181 posts)Why? Because they use votes on raising it as a flag waving exercise. Link it and making a show of actually being the labor party goes away.