Does Minimum Wage Increase Help Or Hurt The Appraisal Business?

[J Grant]

You make 40K,, your favorite activity (whatever it may be) costs 8% more this than last. What happened to your buying power of that activity?

I get it, no need to keep repeating it like a broken record ( about how purchasing power works)...Prices still rise for certain things regardless of a low min wage so its pretty funny to link it to omg if min wage rises everything will go up and thus my purchasing power will go down! It is not a simplistic formula like that, ( see my other posts, it will also lift economy and not everything will go up)

If a price goes up for X 8%, my "purchasing power" for that activity has gone down, so I either can earn more, cut back in some other area or do that activity less, my choice.

 

[DTB]

The reality is that at the base min wage level, it is legislation hat the min wage is set.- nearly every nation in the world has a min wage or collective bargaining law because of that.

No argument there, but buying power, i.e. the costs of goods and services are for the most part not set legislatively.

So what happens when more dollars chase the same goods and services?

 

[DTB]

I get it, no need to keep repeating it like a broken record ( about how purchasing power works)...Prices still rise for certain things regardless So, why add an additional factor rising prices? Makes no sense.of a low min wage so its pretty funny to link it to omg if min wage rises everything will go up nd thus my purchasing power will go down! It is not a simplistic formula like that, ( see my other posts)c

If a price goes up for X 8%, my "purchasing power" for that activity has gone down, so I either can earn more, cut back in some other area or do that activity less, my choice.

All wage earners have that same choice right? Or are you special?

 

[J Grant]

No argument there, but buying power, i.e. the costs of goods and services are for the most part not set legislatively.

So what happens when more dollars chase the same goods and services?

I can't spend all day on this, but look at the nations chart and note the nations with higher min wages are also the nations doing the best economically- if low min wage was what it took for a thriving economy, all those low wage places would be economic power houses ( they are not ). In fact as a nation starts gaining economically its wages go up...when a nation's wages are low it might attract foreign factories but after a certain # of years, unless the citizens want to stay indentured servants, they start earning more and generate their own economy rather than remain as poor outsourced labor for another nation. Well I better do my own work now.

 

[J Grant]

All wage earners have that same choice right? Or are you special?

No not all workers have that same choice or capacity due to many reasons, so this RW anyone can pull themselves by bootstraps only goes so far. Because even if a worker gets more skilled and leaves a min wage job behind, someone else will take that min wage job and there will always be a core of min wage workers,. Therefore the question remains what are they paid and it is a legislative question. .

 

[The Warrior Monk]

3) Obvious I wanted to earn a higher income , did you need to ask that?

I'm a little confused by you arguments. You're discussing "earn" here. The minimum wage is not about earning, but "giving." These are two entirely different concepts.

The difference between us on this is I fail to see how a min wage worker getting a raise pulls me down, means I earn less, or would make me resentful about them since I was able to achieve more.. how does their rising up a bit pull me down? Some of them have it in them to leave min wage work behind and some may not, but I fail to see how under paying them makes my achievement shine brighter. I could have done a lot better for myself btw...

Let's do some easy math in a theoretical situation. Let's say the minimum wage is raised to what you earn. Now, as DTB points out, you have a massive amount of dollars chasing the same amount of goods. The dollar was devalued, and now your dollar earns less. And you value of your job has greatly diminished.

Of course, in the real world, just handing people money creates inflation. More dollars chasing the same amount of goods, and you can buy less.

We have value extremes in the various areas I work, and the values in different market segments increase at different rates. It should be not surprise that when income increases in one particular market segment, the prices increase in that market segment disproportionate to others.

 

[The Warrior Monk]

I can't spend all day on this, but look at the nations chart and note the nations with higher min wages are also the nations doing the best economically- if low min wage was what it took for a thriving economy, all those low wage places would be economic power houses ( they are not ). In fact as a nation starts gaining economically its wages go up...when a nation's wages are low it might attract foreign factories but after a certain # of years, unless the citizens want to stay indentured servants, they start earning more and generate their own economy rather than remain as poor outsourced labor for another nation. Well I better do my own work now.

People like to discuss these issues in a vacuum, not taking into account all factors. I can tell you right now that these countries have structural differences and much smaller populations than the U.S. In these types of comparisons, you will NEVER see the countries that have the most similar population proportionately used in these example; e.g., India, China, Brazil, Indonesia, Pakistan, etc.

 

[J Grant]

People like to discuss these issues in a vacuum, not taking into account all factors. I can tell you right now that these countries have structural differences and much smaller populations than the U.S. In these types of comparisons, you will NEVER see the countries that have the most similar population proportionately used in these example; e.g., India, China, Brazil, Indonesia, Pakistan, etc.

The USA also is on that list and within that list has a higher min wage than other nations, and we are an economic powerhouse ...albeit one with a debt problem and our debt had nothing to do with the min wage ,It's that relative to our standard of living the min wage has fallen behind.

My point was if a low min wage is the economic panacea some seem to believe, why is it so many nations with a low min wage are also the poor nations with stinky economies?

Australia also on that list a large nation and as India and China emerge as the next economic powerhouses their wages are going up, not going down or staying stagnant.

 

[DTB]

I guess this concept is so basic that not everyone can understand it, so it's best to go by one's feelings instead.

 

[DTB]

My point was if a low min wage is the economic panacea some seem to believe, why is it so many nations with a low min wage are also the poor nations with stinky economies?

That logic is so twisted and backwards and using it would conclude that the higher the minimum wage, the more productive a nation becomes. EZ PZ