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'[OT] Why minimum wage laws are bad'
2008\08\22@053133 by Vitaliy

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Vitaliy wrote:
>> While often well-intentioned, the minimum wage laws hurt the very people
>> they're supposed to help: those at the bottom of the food chain -- the
>> young, the unskilled, and the uneducated.
>
> And perhaps those a little higher on the food chain sometimes?

Absolutely. You pay more for everything from food, to clothes, to hamburgers
at your local MacDonalds.


{Quote hidden}

Bob, the problem with your sob story is that I am not the exploiting rich
capitalist s.o.b. that you seem to make me out to be.

I came to the States as a teenager. I bought my first PC with the money I
made working for a a schoolteacher, mowing the lawn, weeding the plants, and
doing all kinds of work around the house. Then I worked as a bagger at
Safeway. I won't bore you with the dozen other jobs (from tech support to
pizza driver) that I held at one point or another.

When my friend and I started ScanTool.net in 2002, we were both freshmen in
college. That year, we routinely worked 40-50 hour weeks, while going to
college. I got married the year before, my daughter was born in September
2002, so I juggled family and college life with running a business for five
years (instead of the three years it was supposed to take, because I had to
drop out so many times). I still put in 50 hours/week on average, although
at various points in time 60 hours (Mon-Sat) was the norm. My wife and I are
still paying our school loans, since our immigrant parents weren't able to
assist us financially (nor did we ever expect them to).

I know what hard work is, and I know financial hardship. Your hypothetical
Jim is your own invention, by the way -- because the real Jim is nothing
like the dope-smoking lazyass you dreamed up. Although the story perfectly
illustrates the attitude of many people: poor people's problems are always
somebody else's fault.


> So your answer would be to pay less to the guys who did the maintenance
> on your jet ski? I'd say pay more and you might get better work. If he
> earns more, he's got more to lose if he screws up.

"Economists connected with the Left -orientated Economic Policy Institute
and the Clinton Administration have concocted a rational for minimum wage
increases. According to these economists higher wages make employees more
content with their jobs, and this leads to higher worker productivity. Thus
workers will be worth paying a minimum wage once their employers are forced
to pay these wages. Of course, if this were true - if employers could get
higher productivity out of less educated and experienced workers by paying
higher wages - they would be willing to do this without minimum wage
legislation."   [http://mises.org/story/2130]

Give me one instance, when you paid more and got better work. My experience
was that increasing the salary of a sloppy or lazy worker doesn't make them
work harder. Salary matters, but for a different reason -- unless the pay is
competitive (at or above the market rate), the best workers will find
employment elsewhere.

Put another way, productivity drives wages -- wages do not drive
productivity. Want to make more money? Make yourself more productive!

Vitaliy


P.S. As far as the real Jim is concerned, he'd be better off if there was no
minimum wage: his salary wouldn't be affected, but he would be able to buy
more with his money.

2008\08\22@064728 by Jeff Findley

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"Vitaliy" <spam_OUTspamTakeThisOuTspammaksimov.org> wrote in message
news:070501c90439$cbc43410$6f02a8c0@ws11...
> Put another way, productivity drives wages -- wages do not drive
> productivity. Want to make more money? Make yourself more productive!

All other things being equal this is true.  Unfortunately, many of us are
now competing with off shore jobs that upper management sees as being 1/4
the cost of our jobs.  In order to become more productive, and earn more
pay, you've got to be at least 4x as productive as the offshore employee.
There are precious few developers who are *that* productive, and they're the
ones with 20+ years of experience.

Luckily, the off shore employees currently have little experience (five
years or less compared to an average of at least 20 years here).  They're in
such high demand they hop from job to job, never truly gaining much
applicable experience.  So, management wants to keep you on for now.  They
give you just enough of a raise each year to keep you employed, so you can
keep training the off shore workers.

I've no doubt that the long term goal of management is to eliminate
development in the US.  Whether they can ever reach that goal, due to the
extreme difficulties of working with off shore developers half way around
the world, is uncertain.

Jeff
--
A clever person solves a problem.
A wise person avoids it. -- Einstein



2008\08\22@075643 by Vitaliy

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Jeff Findley wrote:
>> productivity. Want to make more money? Make yourself more productive!
>
> All other things being equal this is true.  Unfortunately, many of us are
> now competing with off shore jobs that upper management sees as being 1/4
> the cost of our jobs.  In order to become more productive, and earn more
> pay, you've got to be at least 4x as productive as the offshore employee.
> There are precious few developers who are *that* productive, and they're
> the
> ones with 20+ years of experience.

Jeff, this may sound cruel -- but in all fairness, if a worker in India or
China can do your job for 1/4 of the cost, why shouldn't he have it? After
all, your job is not your birthright, and it's not guaranteed by the
Constitution. Restricting companies' access to foreign labor won't solve the
problem -- if people on the other side of the world are capable of doing the
same job at 1/4 the cost, what would prevent them from competing with your
company, and driving it out of business?

In all honestly, I don't think the situation is nearly as bad as you think.
Overall, US programmers are still more productive than their counterparts
elsewhere. If the Chinese or the Russians had the human capital and the
right environment to write Windows, or invent a Segway, they already would
have.


> Luckily, the off shore employees currently have little experience (five
> years or less compared to an average of at least 20 years here).  They're
> in
> such high demand they hop from job to job, never truly gaining much
> applicable experience.  So, management wants to keep you on for now.  They
> give you just enough of a raise each year to keep you employed, so you can
> keep training the off shore workers.

Boy, you have a grim view of management! :)

Most companies nowadays understand the value of face-to-face communication.
The overhead associated with outsourcing is far from negligible. You have a
huge advantage over foreign workers: you are here!

And it's not about experience, it's about skills and education (see for
example Microchip's "merit pay"). Continue learning and improving yourself,
and you will be fine. If worst comes to worst, become a consultant, or start
your own company.

Another good news is that the living standard in developing countries is
improving at a much faster pace than in the US and other developed nations.
There are many reasons for this, but the two main ones is that there's a lot
of room for improving productivity, and their economies are reaping the
benefits of the transfer of technology. Salaries of Indian developers
continue to go up, and eventually there will be little incentive for
companies to outsource.


> I've no doubt that the long term goal of management is to eliminate
> development in the US.  Whether they can ever reach that goal, due to the
> extreme difficulties of working with off shore developers half way around
> the world, is uncertain.

What makes you say that? Do you mean the management of your company, or
management in general?

Vitaliy

2008\08\22@101107 by Peter

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Minimal wages are a necessary evil in countries where the free market (aka the
invisible hand) does not work, for whatever reason. Communist and Capitalist
countries both need it. If the invisible hand would be left alone then minimal
wage laws would not be needed. If the invisible hand cannot work, for example
because the borders are closed (inwards and/or outwards), or because there are
restrictive union or other trade association laws, and the workforce cannot
migrate (or organize, when it is pushed too far) legally, then the minimum wage
law is needed to prevent slavery-like conditions, and labor wage dumping. It is
probably not an accident that there are no minimum wage laws in most advanced
countries where the freedom to migrate and to organize is taken for granted.
They are not needed.

Peter


2008\08\22@105717 by Bob Blick
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Vitaliy wrote:

>> And perhaps those a little higher on the food chain sometimes?
>
> Absolutely. You pay more for everything from food, to clothes, to hamburgers
> at your local MacDonalds.

And what is wrong with that?

> Bob, the problem with your sob story is that I am not the exploiting rich
> capitalist s.o.b. that you seem to make me out to be.

In relative terms you are rich, because you are smart and talented, and
make enough money for some luxuries.

How about the teeming masses who have no talent, a low IQ, etc. etc? Do
we just let them suffere and die, or do we act like citizens of a first
world country and do something about it?

{Quote hidden}

I believe you. But you have talent, too. Lots of hardworking people will
never be able to achieve what you have, and will be stuck with minimum
wage all their lives.

Your hypothetical
> Jim is your own invention, by the way -- because the real Jim is nothing
> like the dope-smoking lazyass you dreamed up. Although the story perfectly
> illustrates the attitude of many people: poor people's problems are always
> somebody else's fault.

The same with everybody else who won't take some responsibility

> "Economists connected with the Left -orientated Economic Policy Institute
> and the Clinton Administration have concocted a rational for minimum wage
> increases. According to these economists higher wages make employees more
> content with their jobs, and this leads to higher worker productivity. Thus
> workers will be worth paying a minimum wage once their employers are forced
> to pay these wages. Of course, if this were true - if employers could get
> higher productivity out of less educated and experienced workers by paying
> higher wages - they would be willing to do this without minimum wage
> legislation."   [http://mises.org/story/2130]

Ahh, Ron Paul :) Libertarian thinking has no place for human suffering.
It is ignored.

> Give me one instance, when you paid more and got better work. My experience
> was that increasing the salary of a sloppy or lazy worker doesn't make them
> work harder. Salary matters, but for a different reason -- unless the pay is
> competitive (at or above the market rate), the best workers will find
> employment elsewhere.

I think people who work low-end jobs need a living wage. If better work
is a side-effect, fine.

> Put another way, productivity drives wages -- wages do not drive
> productivity. Want to make more money? Make yourself more productive!

Actually I'm happy where I am. But you seem to base everything solely on
an economic model(one that I don't agree with) and don't seem to care
about the huddled masses or social justice. Not everyone has an IQ of
140 or the ambition of a CEO or the body of an athlete/supermodel, but
they are still human beings and deserve to be treated as such.

Cheerful regards,

Bob


P.S. Jim Anchower is from The Onion and quite a laugh to read.

2008\08\22@114803 by Walter Banks

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Vitaliy wrote:

> Clipped long set of comments

I agree with a lot of the description of what you are saying.

The political factor (if you can call it that) is that most
major changes in either a society or country seems to
take a generation. I am not sure why but it is very often
true. The distance between cheap copies and quality
products for example is about 25 years. This seems
to occur on a lot of levels. The political factor is an attempt
to change this time constant to extend the status quo
or speed up change through (dis)incentives.

Coffee's ready...

w..




2008\08\22@115552 by Bob Blick

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Oops, politics, strike that.

:) Bob

Bob Blick wrote:
> Vitaliy wrote:
>> legislation."   [http://mises.org/story/2130]
>
> Ahh, Ron Paul :) Libertarian thinking has no place for human suffering.
> It is ignored.

2008\08\22@203020 by Vitaliy

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Peter wrote:
> Minimal wages are a necessary evil in countries where the free market (aka
> the
> invisible hand) does not work, for whatever reason.

There are other ways to address the "social injustice". The problem I have
with minimum wage, is that it makes it look like the government is doing
something good, but in reality is pushes the cost on (mostly) small
businesses, and it doesn't solve the problem. Not only does it create
unemployment among the poorest people, it hurts them in other ways as well.
It contributes to crime (think of all those teenagers with nothing to do),
and the poor folks end up paying more for food and other necessities.

{Quote hidden}

I wasn't aware such countries existed. Can you name a few?

VItaliy

2008\08\22@231440 by Peter Todd

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On Fri, Aug 22, 2008 at 07:56:49AM -0700, Bob Blick wrote:
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Minimum wage laws have to be coupled with social infrastructure for the
unemployed. The whole point of minimum wage laws is to *increase*
unemployment, amoung those people who would otherwise earn so little
that our society has decided they do not earn a livable living. But, if
that social infrastructure, such as welfare, isn't there, instead they
are simply forced out of jobs into absolute poverty.

Assuming adequate social infrastructure, if the minimum wage is too low
you end up with people spending their lives for unlivable wages. On the
other hand when the minimum wage is too high a different problem
happens. My brother lives in Australia, the first country in the world
to enact a minimum wage along with New Zealand. Currently the minimum is
$13.74 (rising to $14.31 October 1st) verses Ontario's $8.75 and the
US's ~$5-$8. What happens in Australia though, is that employers with
jobs paying minimum wage can't afford to risk hiring potentially below
average workers, and instead hire relatively bright, skilled youth who
would otherwise go to college or university. If you truely have no
skills, and never will, you're never going to get a job. Essentially
your flattening the work-vs-reward curve at the low end. Here I went
from $9.10/hour work at university to a $17/hour entry-level job
generally requiring a degree, almost doubling my income. In Australia
you'd go from a $15/hour job to a $20/hour job. Who wants to put in four
years for that? My brother knows a lot of people who didn't bother, and
university tuition is free there. (it's actually taken out of your
taxes, but only if you pay taxes...)

Of course, those numbers in themseleves are misleading in many ways,
Australia has had quite a bit of inflation due to that high minimum
wage, anything involving service tends to be very expensive, but again
the real test is what additional rewards hard work gets you, and it's
not as much as it would be, if the minimum wage was a low lower.

- --
http://petertodd.org 'peter'[:-1]@petertodd.org
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2008\08\23@033700 by Vitaliy

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Bob Blick wrote:
>>> And perhaps those a little higher on the food chain sometimes?
>>
>> Absolutely. You pay more for everything from food, to clothes, to
>> hamburgers
>> at your local MacDonalds.
>
> And what is wrong with that?

I was agreeing with you that it doesn't negatively affect just the people at
the bottom of the food chain. Most people will agree that paying a higher
price for something is generally a bad thing.

>> Bob, the problem with your sob story is that I am not the exploiting rich
>> capitalist s.o.b. that you seem to make me out to be.
>
> In relative terms you are rich, because you are smart and talented, and
> make enough money for some luxuries.
>
> How about the teeming masses who have no talent, a low IQ, etc. etc? Do
> we just let them suffere and die, or do we act like citizens of a first
> world country and do something about it?

"Teeming masses"? "Just let them suffer and die?" :) You know what it
reminded me of?

   Arise ye workers from your slumbers
   Arise ye prisoners of want
   For reason in revolt now thunders
   And at last ends the age of cant.
   Away with all your superstitions
   Servile masses arise, arise
   We'll change henceforth the old tradition
   And spurn the dust to win the prize.

http://www.marxists.org/history/ussr/sounds/lyrics/international.htm

But seriously, Bob. I'm all for helping the less fortunate, minimum wage
isn't going to help. There are much better ways to help people lift
themselves out of poverty.

>> I know what hard work is, and I know financial hardship.
>
> I believe you. But you have talent, too. Lots of hardworking people will
> never be able to achieve what you have, and will be stuck with minimum
> wage all their lives.

What is your solution?

>> the story perfectly
>> illustrates the attitude of many people: poor people's problems are
>> always
>> somebody else's fault.
>
> The same with everybody else who won't take some responsibility

Are you suggesting that I am not taking responsibility?

{Quote hidden}

It's easy to label and dismiss. Easier than answering the question: if
paying workers more improves productivity, why do you need minimum wage
legislation?

{Quote hidden}

Fine, then let's give them money. I would support a negative tax.

Minimum wage keeps poor people out of jobs, and unfairly placed the bulk of
the burden on small businesses.

>> Put another way, productivity drives wages -- wages do not drive
>> productivity. Want to make more money? Make yourself more productive!
>
> Actually I'm happy where I am.

That's great. I'm also quite content with my situation. :)

> But you seem to base everything solely on
> an economic model(one that I don't agree with) and don't seem to care
> about the huddled masses or social justice.

I'm sorry you got that impression. I do care about the less fortunate, I
think we just disagree on how to best help them.

> Not everyone has an IQ of
> 140 or the ambition of a CEO or the body of an athlete/supermodel, but
> they are still human beings and deserve to be treated as such.

What do you mean when you say that someone "deserves to be treated as a
human being"?

> P.S. Jim Anchower is from The Onion and quite a laugh to read.

So you've been pulling my leg all this time?

http://www.theonion.com/content/node/37330

2008\08\23@055541 by Vitaliy

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Peter Todd wrote:
{Quote hidden}

Excellent story, thanks Peter.

I heard a very similar account from a Danish acquaintance. According to him,
in Denmark there are lots of people on welfare, who work and get paid under
the table. The combined tax (income + sales tax) is around 60-70%.

Vitaliy

2008\08\23@080114 by Tony Smith

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{Quote hidden}

Well, you take those stories with a large grain of salt.

Declaring a minimum wage doesn't guarantee that anyone will turn up to do
the job anyway, and if they averge colledge graduate thinks they're much
worth more than that, they're usually wrong.

In Australia there's currently a discussion about importing labour from a
few Pacific islands in order to pick fruit (about 2,500 people), presumably
they'll be paid minimum wage, and presumably because no Australians want to.
IIRC, unemployment is about 3-4%, and it's always higher in rural areas,
oddly enough where one grows fruit.

Weird.

The capitalist would probably point out that's the problem with welfare, the
socialist would complain about poor working conditions on farms, and the
communists are quiet because what they say doesn't matter much these days.

There are some that say everything will working out fine in the end, so
don't worry about it.  Fruit gets picked, people get paid, I get some
bananas.  Yay for all!

On a side note, I recently did my income tax, and discoved I was entitled to
a 'low income allowance'.  "WTF LOL" was pretty much my reaction.  It was
only about $40, but still.  Dumb-arse government has found yet another
dumb-arse way to give people money.  I do wish they would stop things like
that.

Tony

2008\08\23@125442 by Byron Jeff

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On Sat, Aug 23, 2008 at 03:35:07AM -0400, Vitaliy wrote:

Thought to self: why am I wandering into this minefield?

{Quote hidden}

What's missing is that there's a cost for paying lower prices too, but it's
hidden. It comes in the export inequity. But it's an infrastructure issue
that's hard for individuals to see. It shows up in areas what used to have
manufacturing and other jobs that have moved overseas.

{Quote hidden}

[snippage of Marxist lyrics]
>
> www.marxists.org/history/ussr/sounds/lyrics/international.htm
>
> But seriously, Bob. I'm all for helping the less fortunate, minimum wage
> isn't going to help. There are much better ways to help people lift
> themselves out of poverty.

This is what brought me into this thread. How exactly do you help those who
have neither the capability nor interest to help themselves?

> >> I know what hard work is, and I know financial hardship.
> >
> > I believe you. But you have talent, too. Lots of hardworking people will
> > never be able to achieve what you have, and will be stuck with minimum
> > wage all their lives.
>
> What is your solution?

For some, it's presenting an opportunity to change their station. That may
be further educational opportunities, business loans, or other
infrastructure support.

But there are unfortunately, as Bob pointed out, many who are unwilling or
unable to seize upon such opportunities. Then you get a multitude of
directions, none of them too terribly good:

1) Welfare where you give them support they require. This perpetuates
  a generational cycle of unproductivity.

2) Do nothing, which because the need stills requires filling often leads
  to illicit activity. In short if you won't give it to them, then they'll
  try to take it from you.

3) Make them work for it. The problem here is that if the money isn't
  sufficient, they'll either take one or the other of the two options
  above.

> >> the story perfectly
> >> illustrates the attitude of many people: poor people's problems are
> >> always
> >> somebody else's fault.
> >
> > The same with everybody else who won't take some responsibility
>
> Are you suggesting that I am not taking responsibility?

I'll leave that for Bob to address.

{Quote hidden}

Agreed. So let me ask a different question: If you did not have minimum
wage laws, what do you think would be the balance point for wages? Pay too
low and no one will do the job, pay too high and your competitors run you
out of business. So what would you do for labor if their costs were
unfixed?

{Quote hidden}

But that's back to a welfare system, which is designed to make people idle.

> Minimum wage keeps poor people out of jobs, and unfairly placed the bulk of
> the burden on small businesses.

Tough choice, welfare or minimum wage. You say you support a negative tax,
then how about this:

1) Have a minimum wage.

2) For small businesses under a certain size, subsizide those businesses
with minimum wage tax breaks. So instead of giving the money directly to
individuals, you subsizide the small business that gives them jobs.

3) When you get to be a big business, you lose the tax break.

Now small businesses are incentivized to hire, workers make enough money
that they don't need to be on welfare, the government is going to tax their
wages, which will help fund the tax breaks, and maybe by showing the
unwilling how working can improve their living standard, that future
generations will be more motivated and more capable of contributing to the
overall economy.

{Quote hidden}

Again can you outline your thoughts on that?

BAJ

2008\08\23@135457 by Peter

picon face
> There are other ways to address the "social injustice". The problem I have

Minimal wage laws do not address social injustice at all. They may help create
it. 'Illegal' (and non-tax-paying) work usually does not exist where wage laws
do not exist, and where workers can migrate freely (in *AND* out). Wage laws are
a part of trade barriers imposed by states and/or locally by unions in certain
industries. They create a niche where the usual economic forces cannot work.
This can serve immediate financial interests or political powers. The 'political
success' of imposing or raising a minimal wage is a very powerful populist
political platform that has been used by union officials and by politicians
likewise.

It is interesting to notice that in most developed countries that do not
actually have a minimal wage law, other local organizations, such as huge
unions, impose such laws nevertheless, with additional barriers against the
entry of others into the job market they control. F.ex. non union workers cannot
work in a unionized place, lawyers cannot practice without joining the bar and
accepting its minimal wages policy, and so on.

The worst possible kind of minimal wages laws are those imposed by developing
countries that have no separation between state, judicial and industry. There,
minimal wages are just digits in a five year plan. They do not reflect anything
tangible or meaningful outside the commitee that dreamed them up.

Peter


2008\08\23@144056 by Peter Todd

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On Sat, Aug 23, 2008 at 10:00:04PM +1000, Tony Smith wrote:
{Quote hidden}

Why would you bother picking fruit when you could just collect
welfare/unemployment insurance and spend that 30 hours a week looking
for a decent job instead? (or just lie to your caseworker)

Besides, frankly picking fruit is a hard physical job that lots of
people just can't realisticly do. Obesity and other forms of poor health
is much more common in the poor, and the cause and effect go both ways.
Again, it's a work-vs-reward thing, if the alternative was starving to
death, more people would do it, but the whole point of social safety
nets is we don't leave that as an option.

- --
http://petertodd.org 'peter'[:-1]@petertodd.org
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2008\08\24@005759 by Tony Smith

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{Quote hidden}

That sounds like what I said...

Fruit picking might be hard work, but so is mining.  Nothing seems to be
stopping people travelling 4,000km across the country to go dig iron ore.

I wonder why that is.

Oh right, mining boom, big money.

So why don't the growers raise the wages?  Because that increases the price
of the produce, and they have contracts with supermarkets etc that have
fixed prices.  The buyers won't pay over a certain amount.  Or the
supermarkets play one grower against the other, or against imports.

There ya go, it's all the capitalists fault, or the consumer who won't pay a
decent price.  It's always someones fault.  Ah hell, let's just blame the
guvmint as usual.

Tony

2008\08\30@110140 by Gerhard Fiedler

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Peter wrote:

> 'Illegal' (and non-tax-paying) work usually does not exist where wage
> laws do not exist, and where workers can migrate freely (in *AND* out).

I agree in principle with most of your post, but I think this is not
correct -- however, I don't have any facts to cite, just a few observations
and thoughts.

In Brazil, there are many people informally "employed" below the official
minimum wage -- and of course without the legal benefits that go with
formal employment. I don't think that a substantial part of these workers
would be formally employed (that is, receiving legal employment benefits)
if there was no minimum wage. I don't even think that anybody would
actually bother to formalize their employment if there weren't any legal
benefits attached to formal employment. I also think that this is nothing
really special about Brazil, but that it is symptomatic for any society
with a large number of workers without a certain degree of general
education.

(As a side note, I think that income tax on the wages is a non-issue for
the wages we're talking about. They are IME way below the threshold for
paying income taxes.)

So I have difficulty accepting this statement of yours. Do you have any
examples or whatever else to show that this is in fact so? Is there
actually a single example? (Let alone so many that one can rightfully use
the term "usually".)

Thanks,
Gerhard

2008\08\30@112019 by Gerhard Fiedler

picon face
Byron Jeff wrote:

>> It's easy to label and dismiss. Easier than answering the question: if
>> paying workers more improves productivity, why do you need minimum wage
>> legislation?
>
> Agreed. So let me ask a different question: If you did not have minimum
> wage laws, what do you think would be the balance point for wages? Pay
> too low and no one will do the job, pay too high and your competitors
> run you out of business. So what would you do for labor if their costs
> were unfixed?

Can't speak for Vitaliy, but I think he'd just pay something between what
he needs to pay to get the quality of work he needs and what he can pay
while still selling his products at a competitive price. Sometimes the
latter is lower than the former, for whatever reason, and that's when you
have trouble with your business model :) -- no minimum wage law will change
that.

I think one problem with minimum wages is that people often think of
themselves as employees, dependent workers. I don't think there's a way
where a society can "provide work" for everybody. IMO people should get
used to the approach that if you want to receive something, you have to
trade with something -- which leads you to the question "what do I have to
trade?" In that situation, you need to look at yourself and ask "what can I
do that makes someone pay me X?" The key point here is that what I can and
what I want doesn't really matter for itself, what matters is what any of
that is worth to someone else, and who that is. I think looking at working
from this perspective helps a good deal, and getting used to looking at it
from that perspective as early as possible may help some.

Gerhard

2008\08\30@130522 by Peter

picon face
Gerhard Fiedler <lists <at> connectionbrazil.com> writes:

> > 'Illegal' (and non-tax-paying) work usually does not exist where wage
> > laws do not exist, and where workers can migrate freely (in *AND* out).
>
> I agree in principle with most of your post, but I think this is not
> correct -- however, I don't have any facts to cite, just a few observations
> and thoughts.

> So I have difficulty accepting this statement of yours. Do you have any
> examples or whatever else to show that this is in fact so? Is there
> actually a single example? (Let alone so many that one can rightfully use
> the term "usually".)

Examples (also by counter example): Germany, has no minimum wages but the social
system implements them nevertheless, supplementing the income of certain
underpaid persons. There are also very extensive social benefits supported by
very heavy taxes. As a result, the unemployment rate is sky high, growth is
negative, and factories close and move to Eastern Europe and to China (and even
to America). Also, most menial jobs are done by foreigners who work below what
is considered minimal pay. That includes Polish plumbers, Czech cleaning ladies,
Turkish garbage truck operators and much more, many of them likely doing 'gray'
work and/or paying taxes in their countries of origin (at a lower rate than the
extortionate rates practiced by Germany). The newest German 'Green Card'
equivalent even stipulates that a worker who can come on that program to work in
Germany must have earned a ridiculous salary for a number of years previously
abroad, and must be paid a certain minimum salary (that is also relatively
ridiculous). Compare to H1Bs for the USA.

In Eastern Europe things work the other way. The collapse of the
quasi-inexistent health care and pensions system at the end of the COCOM era 20
years ago left these states in shambles, many of them with badly tainted and
still red leadership and policies which discouraged foreign investment for 15
years, and they have started to come out of it only very recently, with 2-digit
annual growth rates. The result is a daily conflict between free-for-all
Capitalism and the vestiges of state-enforced economies.

In Romania, a recent newspaper article said that 47% of de polled Romanians who
work legally say that they do not receive their pay as recorded in their work
documents. There is a nationally enforced minimal wages system and another
enforced by large unions. Worker mobility is very low, they cannot migrate
elsewhere easily due to restrictive work laws imposed by the EC (this country is
a recent EC member). As a result, the wages can be kept almost as low as it
goes, and periodic symbolic 'minimal wage rises' are practiced. In reality,
Romanians who work abroad can earn 5 times more than at home doing the same job.
It's an artifically maintained cheap worker pool. Of course, whoever can leave
and work abroad does so. As a result there is a severe shortage of skilled
workers, yet unemployment is relatively high because nobody will work for the
minimal salaries dreamed up by the unions.

>From what I read, California has a 'Mexican' problem in the sense that the
border cannot be enforced. The result is almost free Capitalism in the lower end
job market, but with wages set by the standard of living of the Mexican laborers
who accept to work for very low wages.

As you can see it's always the same picture. A place that calls itself '*istic',
but in fact has some very strange local 'modifications' of the *ism it claims to
belong to, and as a result there is imbalance in the system. The result seems to
be invariably a mess. One could argue whether this kind of mess is better or
worse than the mess that is 'free for all Capitalism', and in what way. But it's
clearly a mess. And the imposed wage system is almost always (i.e. usually) a
part of the mess, as you can see above.

Sorry for the long posting,
Peter


2008\08\30@141947 by Byron Jeff

flavicon
face
On Sat, Aug 30, 2008 at 11:19:53AM -0400, Gerhard Fiedler wrote:
> Byron Jeff wrote:
>
> >> It's easy to label and dismiss. Easier than answering the question: if
> >> paying workers more improves productivity, why do you need minimum wage
> >> legislation?
> >
> > Agreed. So let me ask a different question: If you did not have minimum
> > wage laws, what do you think would be the balance point for wages? Pay
> > too low and no one will do the job, pay too high and your competitors
> > run you out of business. So what would you do for labor if their costs
> > were unfixed?
>
> Can't speak for Vitaliy, but I think he'd just pay something between what
> he needs to pay to get the quality of work he needs and what he can pay
> while still selling his products at a competitive price. Sometimes the
> latter is lower than the former, for whatever reason, and that's when you
> have trouble with your business model :) -- no minimum wage law will change
> that.

And the business goes under. Understood.

{Quote hidden}

Rightly or wrongly I still see minimum wages as a pacification systen in a
civilized society. The bottom line is that those who cannot see a useful
and legal trade scenario will turn to illegal and dangerous activity. It
devolves into lawlessness. Welfare is one solution but does not require any
activity on the part of the recipient. Offer enough for a decent standard
of living, and folks will be inclined to work for it.

BAJ


'[OT] Why minimum wage laws are bad'
2008\09\02@091720 by Gerhard Fiedler
picon face
Peter wrote:

> Gerhard Fiedler <lists <at> connectionbrazil.com> writes:
>
>>> 'Illegal' (and non-tax-paying) work usually does not exist where wage
>>> laws do not exist, and where workers can migrate freely (in *AND*
>>> out).
>>
>> I agree in principle with most of your post, but I think this is not
>> correct -- however, I don't have any facts to cite, just a few
>> observations and thoughts.
>
>> So I have difficulty accepting this statement of yours. Do you have any
>> examples or whatever else to show that this is in fact so? Is there
>> actually a single example? (Let alone so many that one can rightfully
>> use the term "usually".)
>
> Examples (also by counter example):

[Snipped counter examples Germany, Romania, California]

> As you can see it's always the same picture. A place that calls itself
> '*istic', but in fact has some very strange local 'modifications' of the
> *ism it claims to belong to, and as a result there is imbalance in the
> system. The result seems to be invariably a mess. One could argue
> whether this kind of mess is better or worse than the mess that is 'free
> for all Capitalism', and in what way. But it's clearly a mess. And the
> imposed wage system is almost always (i.e. usually) a part of the mess,
> as you can see above.

Again, I don't really disagree with your interpretation of the examples.
But I still don't see how this shows that "'Illegal' (and non-tax-paying)
work usually does not exist where wage laws do not exist, and where workers
can migrate freely (in *AND* out)" -- your original statement for which I
would like to see where it actually works that way. You having used
"usually" implies that you know places where it works that way -- but I
have a hard time imagining a place without any wage laws, no migration
restrictions, and no illegal and no non-tax-paying work.

Gerhard

2008\09\02@093100 by Gerhard Fiedler

picon face
Byron Jeff wrote:

> Rightly or wrongly I still see minimum wages as a pacification systen in
> a civilized society. The bottom line is that those who cannot see a
> useful and legal trade scenario will turn to illegal and dangerous
> activity. It devolves into lawlessness. Welfare is one solution but does
> not require any activity on the part of the recipient. Offer enough for
> a decent standard of living, and folks will be inclined to work for it.

Maybe, and in some circumstances, given the right balance of values, it may
work to some degree. But it's a difficult balance; make the minimum wage
too high, and you get exactly the contrary: low-wage jobs (which often
don't provide essential services) just vanish as the minimum wage gets too
high to pay for these non-essential services, so they get cut or the
workers are employed illegally for lower wages.

The latter of course is always some sort of "agreement" between the
"employer" and the "employee": the "employee" needs a job and can't find
one that pays the official minimum wage (plus official benefits), the
"employer" wants something done but can't or doesn't want to pay the
official minimum wage (plus official benefits), so both agree that this has
to be done illegally, paying whatever the market rate and market benefits
(usually none, in this range) are...

It's difficult to explain to someone desperately looking for something to
work and make /some/ money why he/she shouldn't work for X dollars just
because that's below minimum wage and not officially registered... once
you're desperate enough, you take anything you can get. And that's again
something that won't be changed by minimum wage laws.

I think the problem with minimum wage is not the intent (which I agree
with), it's the unintended consequences and distortions. I think the only
ones who are helped by minimum wage laws are the ones holding jobs that
make a little bit less; their wages probably get increased and so they make
more. But they didn't make much less than the set value to start with, so
the effect is probably marginal (even though it can be substantial for an
individual). All others are either above (and not affected) or way below
(and their jobs just go away).

Gerhard

2008\09\02@150934 by Peter

picon face
Gerhard Fiedler <lists <at> connectionbrazil.com> writes:
> Again, I don't really disagree with your interpretation of the examples.
> But I still don't see how this shows that "'Illegal' (and non-tax-paying)
> work usually does not exist where wage laws do not exist, and where workers
> can migrate freely (in *AND* out)" -- your original statement for which I
> would like to see where it actually works that way. You having used
> "usually" implies that you know places where it works that way -- but I
> have a hard time imagining a place without any wage laws, no migration
> restrictions, and no illegal and no non-tax-paying work.

The counter-examples pretty much showed that there seems to be no place without
minimum wages, even if they are not called that or are not enforced nationally.
They also showed that in general where something resembling minimal wages does
exist (such as in California), 'gray' work abounds and very often economic
pressures cause factories to close and move elsewhere, where the local minimal
wages are lower. Example: the unionized workers at a Nokia cell phone plant in
Bochum, Germany, recently got laid off, because the factory moved in corporem to
a unionized place with lower "minimal wages", namely to Cluj (Klausenburg) in
Romania. To top that, the German Parliament recently (2007, during or after the
move) voted against introducing minimum wages "because they would cause job
losses". So you have an example of a highly developed country that
has-no-minimum-wages yet loses jobs to another country that has-minimal-wages
(Romania has them) but where they are massively lower than in Germany.
Apparently at the time of the move (2007) some German workers moved to
Klausenburg as they were told that they could keep their jobs if they moved with
the factory. But they  found the conditions unfit and went back. I do not have
the full details of this latter story, it may be folklore.

Peter


2008\09\02@155934 by Paul Anderson

face picon face
On Fri, Aug 22, 2008 at 10:56 AM, Bob Blick <.....bobblickKILLspamspam@spam@ftml.net> wrote:
>
>
> I think people who work low-end jobs need a living wage. If better work
> is a side-effect, fine.
>
Something that is commonly ignored is that increasing the severity of
poverty impacts crime.  The worse off people are, the more lucrative
crime becomes.  People who argue against minimum wages usually aren't
in a place to be on the wrong end of their beliefs.  Having the guy
around the corner make 70 cents a day is fine as long as you're
comfortable.  When you find yourself in that position, it's altogether
less pleasant.

--
Paul Anderson
VE3HOP
wackyvorlonspamKILLspamgmail.com
http://www.oldschoolhacker.com
QRP ARCI #13228, GQRP #12447

2008\09\03@085802 by Gerhard Fiedler

picon face
Peter wrote:

> The counter-examples pretty much showed that there seems to be no place
> without minimum wages, even if they are not called that or are not
> enforced nationally.

Right... if nothing else, there is the general wage level that provides
some kind of minimum for what people get up and go to work, enforced by
whatever social security system there is in place.

> They also showed that in general where something resembling minimal wages
> does exist (such as in California), 'gray' work abounds and very often
> economic pressures cause factories to close and move elsewhere, where
> the local minimal wages are lower.

Agreed. However, they don't show how it would be if there wasn't something
resembling minimum wages. In fact, I'd say that there is /always/ something
like minimum wages, from the perspective of both the employer and the
employee. If a certain job is generally paid $20/h in your area, you'd
probably have difficulties finding someone who really can do this job to
work for $2/h; somewhere in between is the de-facto minimum wage for this
job in this area.

> Example: the unionized workers at a Nokia cell phone plant in Bochum,
> Germany, recently got laid off, because the factory moved in corporem to
> a unionized place with lower "minimal wages", namely to Cluj
> (Klausenburg) in Romania.

Shows exactly my point. If he can (and wants to) move, that's probably what
the employer would do to lower the de-facto minimum wage.

I don't think that this picture changes drastically with or without legal
minimum wages; IMO the only thing a legal minimum wage does is distort the
market a bit for jobs that have a de-facto minimum wage not too far away
from the legal minimum wage. Wages way below generally mean
informal/illegal employment (these jobs probably have been or would be
informal even without a minimum wage); wages way above are not affected at
all.

Gerhard

2008\09\03@090638 by Gerhard Fiedler

picon face
Paul Anderson wrote:

> On Fri, Aug 22, 2008 at 10:56 AM, Bob Blick <.....bobblickKILLspamspam.....ftml.net> wrote:
>>
>> I think people who work low-end jobs need a living wage. If better work
>> is a side-effect, fine.
>>
> Something that is commonly ignored is that increasing the severity of
> poverty impacts crime.  The worse off people are, the more lucrative
> crime becomes.  People who argue against minimum wages usually aren't in
> a place to be on the wrong end of their beliefs.  Having the guy around
> the corner make 70 cents a day is fine as long as you're comfortable.
> When you find yourself in that position, it's altogether less pleasant.

Of course... but what makes you think that just because there is a legal
minimum wage, someone would all of a sudden pay this guy $20 a day to do
the same job? The job then just doesn't exist anymore. Or the guy continues
to work for the same wage, but now illegally... which may be even worse for
him.

I don't see how the people who make way less than the legal minimum wage
are positively affected by it. IMO the only ones who are positively
affected are the ones who hold a formal job (with all legal benefits) and a
wage that's slightly below. They probably will get a raise and continue to
get a raise as the minimum wage increases. The ones who make far less
simply either lose their job (when a legal minimum wage is introduced) or
go illegal -- because the fact that they make far less shows that they
can't find a job in the neighborhood of the legal minimum wage, and no
minimum wage law creates those jobs for them.

Gerhard

2008\09\03@130752 by Paul Anderson

face picon face
On Wed, Sep 3, 2008 at 9:06 AM, Gerhard Fiedler
<EraseMElistsspam_OUTspamTakeThisOuTconnectionbrazil.com> wrote:
>
>
> Of course... but what makes you think that just because there is a legal
> minimum wage, someone would all of a sudden pay this guy $20 a day to do
> the same job? The job then just doesn't exist anymore. Or the guy continues
> to work for the same wage, but now illegally... which may be even worse for
> him.
>
Not necessarily.  It's a question of profitability.  The increase
doesn't necessarily make it unprofitable to have the fellow working.
If we compare labour to any other cost in a business, for example oil,
it becomes clearer.  Shell doesn't shut down refineries just because
oil went from $100 to $120.  Similarily, they don't shut down
refineries just because the cost of labour goes from $26/hr to $28/hr.
The effects are more complicated.  Sometimes they result in increased
prices, sometimes not.  There are a huge number of factors that
influence these prices.

It is also true that while an increase in labour costs does not
directly translate into an increase in prices, a decrease in labour
costs does not directly translate to a decrease in prices.  Places
like Walmart argue that increasing minimum wage will increase prices,
but do you honestly think a decrease would result in a direct decrease
in prices?  The notion is, in my opinion, silly.  They would be just
as happy to keep the prices the same and rake in more profit.




--
Paul Anderson
VE3HOP
wackyvorlonspamspam_OUTgmail.com
http://www.oldschoolhacker.com
QRP ARCI #13228, GQRP #12447

2008\09\04@091306 by Gerhard Fiedler

picon face
Paul Anderson wrote:

>> Of course... but what makes you think that just because there is a legal
>> minimum wage, someone would all of a sudden pay this guy $20 a day to
>> do the same job? The job then just doesn't exist anymore. Or the guy
>> continues to work for the same wage, but now illegally... which may be
>> even worse for him.
>>
> Not necessarily.  It's a question of profitability.  The increase doesn't
> necessarily make it unprofitable to have the fellow working. If we
> compare labour to any other cost in a business, for example oil, it
> becomes clearer.  Shell doesn't shut down refineries just because oil
> went from $100 to $120.  Similarily, they don't shut down refineries
> just because the cost of labour goes from $26/hr to $28/hr.

Remember, you (and I) were talking about your example of a guy who makes 70
cents a day. I don't know where you are, but assuming you are talking about
the USA, it seems the lowest minimum wage is in Kansas with some $20 per
day. (OTOH, it also seems that the federal minimum wage, which is around
$55/day, overrides this, so I don't know what's the purpose of having a
state minimum wage that's lower... ?)

The differences you are talking about is exactly what I was talking about:
if someone makes $50 a day, raising the minimum wage to $55 a day probably
gives the guy a rise and he gets to keep his job. That's why I was saying
that I think the ones that would make a little less than the minimum wage
profit from it. (That's the part of my reply that you snipped :) But they
are not the example you started out with: 70 cents a day (always assuming
USA).

> The effects are more complicated.  Sometimes they result in increased
> prices, sometimes not.  There are a huge number of factors that
> influence these prices.

Most markets would probably be influenced by an 80fold increase in labor
cost ($0.70/d to $55/d), but I wasn't talking about prices. I was talking
about jobs. Do you really, really think that someone hiring a guy for 70
cents a day to do something worth that little would be willing to pay $55
for the same job after introducing a legal minimum wage? Do you have an
example? What kinds of job do you see people do for 70c a day, that you
(yes, you personally, not some anonymous employer -- it is always a good
thing to put things into perspective) would pay the same guy for the same
job $55 a day?

I personally know that there are limits, from my own experience: there is
only so much I'm willing to pay for someone unskilled to occasionally help
me out with odd jobs around the house. I usually end up hiring someone
reasonably skilled who makes more than minimum wage anyway, because of the
skills, because that ends up being less expensive than hiring someone
really cheap who doesn't have any skills. There are many low-wage jobs here
in Brazil, and many people hold a job below the legal minimum wage. Many of
these informal jobs are some form of help in the household: maid, nanny,
gardener, handyman, almost all not particularly skilled or else they'd not
work below minimum wage without legal benefits. (There are people working
in these jobs who make much more than minimum wage, but many if not most
make way less.) Many of these jobs also are not essential (due to lack of
skills) and simply would cease to exist if people were forced to decide
between hiring the same person for the same job, paying legal minimum wage
and benefits (which often would end up being 2 or 3 or 4 times more), or
not hiring anybody at all. Now I agree that it would be best if these
people could get the general and specific skills that allowed them to do
work that pays better, but as long as they don't have these skills, there
is no minimum wage law that can get them a minimum wage job -- if the law
(that exists) were rigorously enforced (which it isn't), most of them
simply would be without a job, while a small portion of them would get a
rise and legal benefits and keep their job. So I'm not sure whether
strictly enforced minimum wage laws really would do good for a majority of
these people. Better public education probably would, but that's a
different story.

FWIW, the comparison chart in
http://en.wikipedia.org/wiki/Minimum_wage_in_the_United_States shows a weak
correlation between higher minimum wage and higher teenager unemployment.
Which makes sense... if you have to pay a wage that gets you someone with a
certain experience, you probably are less inclined to hire someone with
less experience for the same money. A minimum wage law doesn't strongly
affect the worth of work, it just tries to fight it -- and it does so, with
intended and unintended consequences.

> It is also true that while an increase in labour costs does not directly
> translate into an increase in prices, a decrease in labour costs does
> not directly translate to a decrease in prices.  Places like Walmart
> argue that increasing minimum wage will increase prices, but do you
> honestly think a decrease would result in a direct decrease in prices?

I'm not Walmart, I'm not arguing their perspective, and I never talked
about prices of goods, so you'd have to ask Walmart, not me, to get your
question answered :)  For me, minimum wage is not about prices of goods, it
is about prices of work. Prices of goods may or may not be a secondary
consequence, but the primary issue is the work, and what it is worth to
both the hiree and the hirer.

Gerhard

2008\09\04@114646 by Paul Hutchinson

picon face
> -----Original Message-----
> From: @spam@piclist-bouncesKILLspamspammit.edu On Behalf Of Gerhard Fiedler
> Sent: Thursday, September 04, 2008 9:12 AM
>
> Paul Anderson wrote:
>
>> Of course... but what makes you think that just because there is a legal
<snip>
>
> Remember, you (and I) were talking about your example of a guy who makes
70
> cents a day. I don't know where you are, but assuming you are talking
about
> the USA, it seems the lowest minimum wage is in Kansas with some $20 per
> day. (OTOH, it also seems that the federal minimum wage, which is around
> $55/day, overrides this, so I don't know what's the purpose of having a
> state minimum wage that's lower... ?)

U.S. federal minimum wage only applies to jobs that are tied to interstate
commerce in some way. Waiters, waitresses, janitors, etc. who work for
companies not involved in interstate commerce are exempt from federal
minimum wage.
http://www.dol.gov/compliance/guide/minwage.htm

Five states have no minimum wage law so, in those states exempt employees
can be paid whatever the employer desires.
http://www.dol.gov/esa/minwage/america.htm


Paul Hutch

<huge snip>


2008\09\04@121845 by Apptech

face
flavicon
face
> Remember, you (and I) were talking about your example of a guy who makes
> 70
> cents a day. I don't know where you are, but assuming you are talking
> about
> the USA, it seems the lowest minimum wage is in Kansas with some $20 per
> day. (OTOH, it also seems that the federal minimum wage, which is around
> $55/day, overrides this, so I don't know what's the purpose of having a
> state minimum wage that's lower... ?)


70 cents  aday sounds like 'outer exploit them for all the market will bear
ville.' Worst case China is perhaps about $US2/day for a sensible full time
job. And people in areas where that is acceptable can live well enough on
that!. NEVER ask for a level playing field ! :-) - (just like you should
never ask God for justice for yourself :-) ).



       Russell

2008\09\04@161028 by Youda He

flavicon
face
Ever since China post there minimum wage, plus raising currency
exchange rate to dollar,
a lot of factories moved from China to Vietnam, any info on minimum
wage on Vietnam?

-- Youda

On Thu, Sep 4, 2008 at 9:15 AM, Apptech <KILLspamapptechKILLspamspamparadise.net.nz> wrote:
{Quote hidden}

> -

2008\09\04@163411 by Spehro Pefhany

picon face
Quoting Youda He <RemoveMEyoudaTakeThisOuTspamgeometrysystems.com>:

> Ever since China post there minimum wage, plus raising currency
> exchange rate to dollar,

Ever since the Olympics were announced to be in Beijing too.. maybe there
is some connection?

> a lot of factories moved from China to Vietnam, any info on minimum
> wage on Vietnam?
>
> -- Youda

libcom.org/news/vietnemese-minimum-wage-set-rise-16052007
http://www.pacificbridge.com/publication.asp?id=100

China has been discouraging (or at least not encouraging) low value-added
industry for quite some time (maybe 10 years), starting in the most  
developed areas and SEZs.

{Quote hidden}

>> --

2008\09\04@172539 by Apptech

face
flavicon
face
>> Ever since China post there minimum wage, plus raising currency
>> exchange rate to dollar,

> Ever since the Olympics were announced to be in Beijing too.. maybe there
> is some connection?

>> a lot of factories moved from China to Vietnam, any info on minimum
>> wage on Vietnam?

ie About $US45/month for Foreign Invested Enterprises (FIEs).
Rather less for local companies.
Below market rates, they say.
So $US45/ 4.33 weeks/ /6 days ~~~= $US1.75/day.

The Chinese mimimum rate varies but is AFAIK still under $US1/hour.
And I know of people still paying far less than that.


       Russell McMahon



> libcom.org/news/vietnemese-minimum-wage-set-rise-16052007
> www.pacificbridge.com/publication.asp?id=100
>
> China has been discouraging (or at least not encouraging) low value-added
> industry for quite some time (maybe 10 years), starting in the most  
> developed areas and SEZs.

2008\09\05@065659 by Gerhard Fiedler

picon face
Paul Hutchinson wrote:

>>> Of course... but what makes you think that just because there is a legal
> <snip>
>>
>> Remember, you (and I) were talking about your example of a guy who
>> makes 70 cents a day. I don't know where you are, but assuming you are
>> talking about the USA, it seems the lowest minimum wage is in Kansas
>> with some $20 per day. (OTOH, it also seems that the federal minimum
>> wage, which is around $55/day, overrides this, so I don't know what's
>> the purpose of having a state minimum wage that's lower... ?)
>
> U.S. federal minimum wage only applies to jobs that are tied to interstate
> commerce in some way. Waiters, waitresses, janitors, etc. who work for
> companies not involved in interstate commerce are exempt from federal
> minimum wage.
> www.dol.gov/compliance/guide/minwage.htm
>
> Five states have no minimum wage law so, in those states exempt employees
> can be paid whatever the employer desires.
> http://www.dol.gov/esa/minwage/america.htm

Thanks, Paul, that makes sense.

Given this, the USA must be a good showcase for the effect of minimum wage
laws. It should be relatively easy to find similar (!) places in states
with high minimum wage, low minimum wage and no minimum wage and see
whether there is a drastic difference in what and for how much the poor
work. FWIW, the CA minimum wage is not much more than a piece of paper.
There is a huge population that earns way less.

Gerhard

2008\09\05@071936 by Lindy Mayfield

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How are minimum wage laws different from a "living wage"?  If there is
one.

-----Original Message-----
From: TakeThisOuTpiclist-bouncesEraseMEspamspam_OUTmit.edu [RemoveMEpiclist-bouncesspamTakeThisOuTmit.edu] On Behalf
Of Gerhard Fiedler
Sent: 5. syyskuuta 2008 13:56
To: piclistEraseMEspam.....mit.edu
Subject: Re: [OT] Why minimum wage laws are bad


Given this, the USA must be a good showcase for the effect of minimum
wage
laws. It should be relatively easy to find similar (!) places in states
with high minimum wage, low minimum wage and no minimum wage and see
whether there is a drastic difference in what and for how much the poor
work. FWIW, the CA minimum wage is not much more than a piece of paper.
There is a huge population that earns way less.

Gerhard


2008\09\06@100038 by Gerhard Fiedler

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Lindy Mayfield wrote:

> How are minimum wage laws different from a "living wage"?  If there is
> one.

IMO:

A (legal) minimum wage is defined by law, and you can't get formally
employed with a lower wage, even if you wanted to. There's no guarantee
that you actually can live with minimum wage.

A living wage is whatever you can live with, and as such depends a lot on
many things. I think there are people who can't imagine living with less
than $10k/month, while others may be able to manage with much less... and
it has nothing to do with whether that is from a formal employment or not.

I think there may be the use of 'living wage' to indicate how much a
certain minimum level of living costs in a certain place, used to get a
measure of how many people live below that line. But again, it depends a
lot on what you consider as 'living'.

Gerhard

2008\09\06@111147 by Lindy Mayfield

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The reason I was asking about that, Gerhard, is because I live in
Finland and although I don't have any hard facts about it, it seems that
anyone who works (and many who do not) get what I assume to be a "living
wage".  

I base this on the fact that there are no slums or housing projects in
Finland.  It is impossible to find drug dealers on street corners.
There are no gang related drive-by shootings.  An office worker who
answers the phones or a person who works in a kiosk can afford a decent
place to live.

Now while I cannot attribute all of this to salaries, it is hard to
believe that how much people make doesn't play some major role.

Taxes are also high here, but I don't have to look more than out my
window to see that I get what I pay for.

Lindy



{Original Message removed}

2008\09\07@090508 by Gerhard Fiedler

picon face
Lindy Mayfield wrote:

> Taxes are also high here, but I don't have to look more than out my
> window to see that I get what I pay for.

I always felt (more than knew, because I never spent any significant time
there) that the Skandinavian countries have quite silently developed a form
of social capitalism or socialism (in the eyes of the more hardcore
capitalists:) that works pretty well.

I wonder what it is that makes this work there and not almost anywhere
else.

Gerhard

2008\09\07@114303 by Bob Blick

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It's cold and they snuggle together to stay warm. One thing leads to
another, and you have a cooperative society.

In the mideast, they have rocks, so they throw rocks.

Need any more oversimplifications? I got 'em :)

Here in the U.S. we have lots of cars and cheap appliances, so we have
innovation like this:

http://www.youtube.com/watch?v=Bd876iqGdT4

Cheerful regards,

Bob


Gerhard Fiedler wrote:
{Quote hidden}

2008\09\07@114851 by Chris Smolinski

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>Gerhard Fiedler wrote:
>>  Lindy Mayfield wrote:
>>
>>>  Taxes are also high here, but I don't have to look more than out my
>>>  window to see that I get what I pay for.
>>
>>  I always felt (more than knew, because I never spent any significant time
>>  there) that the Skandinavian countries have quite silently developed a form
>>  of social capitalism or socialism (in the eyes of the more hardcore
>>  capitalists:) that works pretty well.
>>
>>  I wonder what it is that makes this work there and not almost anywhere
>  > else.

How well will it continue to work as the populate ages, and there are
fewer workers to support it?

--

---
Chris Smolinski
Black Cat Systems
http://www.blackcatsystems.com

2008\09\07@182207 by Dave Joyce

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Here in Australia we have minimum wage laws, along with government
funded medical, I don't think it is a bad thing. It stops a lot of
exploitation of vulnerable  people, and it works quite well.

Dave...

Gerhard Fiedler wrote:
{Quote hidden}

2008\09\07@220152 by Rich

picon face
I do not know where Lindy lives, but I can look out of my window and wonder
what I am getting for my money, and I am not looking forward to $845 Billion
in additional taxes to give to the UN when I am already over taxed to the
point that I have to do without things I need.


{Original Message removed}

2008\09\08@024258 by Lindy Mayfield

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About 35 kilometers outside of Helsinki.

And Finland is famous for not sticking their nose into other countries
business. (-;

And don't forget, if you are in the US, that there are two current wars
to pay for plus all the occupation in other countries like S. Korea,
Germany, and so on.

{Original Message removed}

2008\09\08@235959 by Rich

picon face

Hi Lindy.  Glad to know where you are from.  Actually, I would love to visit
Helsinki.  I had a client in Helsinki years ago but I never made the trip.
You are right, of course, there is an expense associated with maintaining
security forces.  But the even greater expenses from corruption like the rip
off by Fannie Mae and Freddie Mac and all the Pork deals and so-called
community organizations that suck up billions and are a virtual "Bridge to
Nowhere." These community organizations achieve nothing but political
organization. And, that political organization does nothing but beget more
funding, and more spending on political organizations to do more of the
same.  At least one of the community organizations uses taxpayer money to
train political activists.  When you look at the military budget in
perspective it pales by comparison. Of course, there are exceptions to the
rule and some valuable community organizations arise.  But by and large
these are the exceptions and not the rule.

It would be wonderful to have a world at peace with no threats from others.
I would like to include America in that secure group with no threats against
it but we all know that at least two major powers continue threaten America
and America's allies with war, aside from the threat of Terrorism.  But
again, it would be wonderful if there were no need to make alliances for the
sake of national security or commitment to the security of smaller more
defenseless nations.

I am more afraid, however, that America will crumble under the weight of
internal greed and corruption among certain politicians in congress, than
from war.  Fighting a war has proven to be easier than eliminating the greed
and corruption among some politicians (but thankfully not all) in Congress.
I am all for taking away the opportunity for business to get in bed with
congress and line the politician's pockets at the expense of the citizen.
Caveat Emptor, it seems, is appropriate regarding politicians.  It seems
like we work for them when they should be working for us.

Lindy, everything I have said here needs considerable expansion and
explanation.  There are so many complexities that obscure truth that it is
no longer possible to state something political simply.  Also, I like to
qualify what I say lest someone take offense where none is intended.  I hope
you do not.  I would like to know what you say, and if possible, why you say
it.  This is a tremendous learning experience for me.  Would you be willing
to tell me what newspaper(s) you read regularly?
Respectfully,
yours



2008\09\09@003104 by Bob Blick

face
flavicon
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Please stay calm, everybody! As some of you may recall, this is the
PICLIST, and one of the things we don't want is politics, even in OT.

There is a lot of red meat here that could be easy to run with, and I'm
just not up for dealing with the fallout from it.

Let sleeping dogs lie.

Rich, thanks for your opinion, but we don't need it or the inevitable
counterarguments. In other words, thanks for nothing.

You could have asked more about Finland, which I am actually interested
in :)

Cheerful regards,

Bob "your happy moderator and 1/2 Finn" Blick

Rich wrote:
> Hi Lindy.  Glad to know where you are from.  Actually, I would love to visit
> Helsinki.  I had a client in Helsinki years ago but I never made the trip.
> You are right, of course, there is an expense associated with maintaining

-- LONG Economic/political thread snipped --

2008\09\09@144307 by Lindy Mayfield

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Yes, Helsinki is a wonderful city for a visit.  It's amazing how high
quality everything is, including the people.  And while there is quite a
presence of security people watching over stores, hotels, pubs, etc.
there is no heavy-handedness from them or the police.

I understand exactly what you say and of course I don't take offense.  I
have my opinions about things internally in the US but they are a bit
radical and not appropriate for this forum.  But now that I live in
Europe (for going on 9 years now) I look at things from a different
angle.

You make good points about greed and corruption.  I'm not exactly sure
about the thread of terrorism though.  While the 911 attack was
extremely tragic (and graphic, that's the key) there were only 3,000
people.  (As opposed to what it could have been, I mean.)

One estimate of the cost of the war in Iraq is 577 billion.  That works
out to $192,333,333 per person.  And about 34 Iraqis for each one.
Again, no disrespect meant, but a war on homelessness, or a war on
cancer, or a war on poverty etc. would make more sense.  The War on
Terror (tm) should really just be a criminal matter. IMHO.

According to cancer.org each year 483,000 people die from illnesses
related to cigarette smoking.  They'll spend 577 billion to kill 100,000
Iraqis because Saudi Arabians flew jets into the WTC and killed 3000
people, while allowing a substance more addictive than crack to kill
483,000 people per year. If they eradicated tobacco like they attempt to
eradicate smack then... Well.  I'm kind of on a tangent now, huh?

I normally get my news from web sites, NPR, The Daily Show, BBC World,
things like that.  The things that are important to me are the macho
mumble peg games with Russians, a new "Cuban Missile Crisis" the Polish
edition, and the general destabilizing effect.  I watch the cops mace
and beat the crap out of a kid for asking a rambling question and think
things really aren't too bad where I'm living now. (-:

And I really think that this isn't a ramble-off-topic from what we were
discussing.  Getting people up to a higher standard of living would make
everyone's life in the US better.  It's the old "clean up your own yard
before complaining about the neighbor's."  

And seriously, the world won't fall apart if the US isn't there to keep
an eye on everything.  As an example, they left Viet Nam and they are
doing just fine.  

As you said things are a bit more complex than I too am able to convey,
and I hope I haven't said anything that offends.  I was very, very
careful not to.

Lindy


{Original Message removed}

2008\09\10@135133 by Rich

picon face
Thank you for the reply, Lindy.  I am happy that we can discuss such things
in a civil and even pleasant and respectful way.  I believe it is a mark of
civil maturity.  Yes, things are very complex.  I find that being informed
is a matter of careful research.  I also listen to NPR and BBC and too many
resources to mention. I find NPR to be one of the major outlets of
misinformation.
Also,  I recently read a book by Joyce Davis entitled "Between Jihad and
Salaam."  She is from NPR.  I was totally amazed at her complete lack of
knowledge and understanding of foreign policy and especially American
foreign policy.  I will not generalize that to the greater population of her
camp without good evidence.  I have found that the mass media does not
necessarily present valid information.  Sometimes it is valid when it
supports the political view of the organ.  Disseminating valid information
is not their purpose; though it may have been at one time.  The mass media
presents an image of events according to a political alignment with some
ideological agenda. The New York Times is notorious for that.  It is
important to understand at AT LEAST two things; what is the political
position that a particular media is promoting, and how that will affect your
own understanding of the actual events with respect to their purpose and
impact.  It is a mistake not to include the media propaganda in one's
research because it would be like trying to understand color with only two
of the three primary colors.

I like what you say about "clean up your own back yard."  How true, how
obvious and yet how difficult. There is a lot of cleaning to be done in the
American back yard. Drugs, gangs, and neighborhoods that fertilize criminal
opportunity, and  now illegal aliens have created a new wave of crime. But
there are monumental problems and the socio-political landscape is
ill-equipped to solve real problems.   One difficulty is that some
politicians believe tor pretend to believe that money will solve all
problems:  Fund It!!  Fund It!! Fund It!!  Just blind funding.  That may
create the illusion that they have acted responsibly but the problems are
not resolved.  Social issues that need to be addressed directly are couched
in obtuse political language to suit one party or another and in the end
mask the real cause of the problem in "political correctness."  Things get
worse.  I liked it better when we had a real two party system (in reality
not just image) and each party had the same goal of American prosperity,
progress and opportunity for ALL.

The war on terrorism is not a war on America it is a war on everyone and the
American government has not been aware of the dangers of radical Islam as it
should have been. The idea that the American government carried out the
attack on the twin towers is the kind of political obstructionism that I am
opposed to.  Ignorance?  Perhaps, but by whom?  The Carter Administration
through ignorance or otherwise was very instrumental in the effecting
overthrow of the Shah of Iran and the installation of the Ayatollah
Khomeini, which unleashed a reign of terror that affected the entire world.
It is the product of American Liberalism and it's world agenda of
superficial harmony.   And when I say American liberalism I do not restrict
it to the democrats but I include the liberal republicans.   I am not
convinced that sprinkling the magic dust of liberalism over every nation of
the world will bring harmony and and peace between nations.  I believe that
nations look to self-interest and that peace is more likely to rest on such
conditions as mutual agreements that look to national interests and not
exploitation.  But we cannot write a treatise on the list so please be aware
that I leave this open to many challenges that cannot be answered in brief.

I noticed that you referenced the dollars spent on security (military).  I
will posit that world hunger cannot be solved if all "wealthy" nations
contributed 75% of their wealth to the problem. The problem is not money, it
is greed and political ambition that is not an American trademark; it is an
international trademark.  Finger pointing is easy because it avoids national
introspection.  It takes more than money to solve world hunger and it takes
involvement in the nations of the hungry.

You may be interested in this link.
video.google.com/videoplay?docid=4094926727128068265
though it is tangential.

Thank you for allowing me to discuss with you what appears to be different
perspectives, in a mutually respectful way without any hint of animosity.
And yet, we are free to express our individual ideas.  It would be great if
it could become contagious. :-)  :-)

Consider me as a friend





----- Original Message -----
From: "Lindy Mayfield" <EraseMElindy.mayfieldspamssf.sas.com>
To: "Microcontroller discussion list - Public." <RemoveMEpiclistEraseMEspamEraseMEmit.edu>
Sent: Tuesday, September 09, 2008 2:41 PM
Subject: RE: [OT] Why minimum wage laws are bad


{Quote hidden}

> {Original Message removed}

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