Does Minimum Wage Increase Help Or Hurt The Appraisal Business?

[Meandering]

As someone who has limited knowledge regarding economics/finances/etc....

I wonder why a $15 minimum wage in 2024 will be the demise of the US economy....

2 WORDS to explain this.
Global Trade.
You have to know that "the wage" increase, also increases the expense of unemployment taxes to the employer. Keep making wages more expensive and try to compete with China, India or any other country that can use prisoners to work for nothing more than lunch and government housing.

Haven't wages been rising throughout our history, albeit slowly for the lower 50% than the upper 50%....Is the US economy too fragile to absorb an additional $7.00/hour over the course of 5 years? And yet the US is still considered the only superpower....So why is $15 the line in the sand?

4 words
Global Trade, Global Corporations.

But keep pulling at straws. The history can not repeat itself with "free" trade, or even favorable tariff trade (below replacement cost if made here), as long as the costs of living and production here are impacted by mountains of state and federal laws, rules, regulations, fines and taxes. But you can believe none of that exists.

You're old enough to remember when the clothes you were wearing were made, 20-30 miles from where you lived. Why now do you think that it is cheaper to buy a t shirt and jeans that are made 1/2 a world away and shipped here, than it is, to buy one made 20-30 miles away from you? Because your local wages are too low?

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[Randolph Kinney]

So why is $15 the line in the sand?

The cut in hours and layoffs happened at $11/hr in Seattle but accelerated at $13/hr. 2/3 minimum wage workers had reduced hours and 1/3 lost their job.

$15/hr is a product of socialism with liberal groups and unions boosting for same.

 

[Jacob Coleman]

As someone who has limited knowledge regarding economics/finances/etc....

I wonder why a $15 minimum wage in 2024 will be the demise of the US economy....

Haven't wages been rising throughout our history, albeit slowly for the lower 50% than the upper 50%....

Is the US economy too fragile to absorb an additional $7.00/hour over the course of 5 years?

And yet the US is still considered the only superpower....

So why is $15 the line in the sand?

The problem with minimum wage is we are grouping all the companies as ONE entity. In reality, there are companies who could afford to pay for the minimum wage, but there are others that cannot.

Those that cannot afford to increase the minimum wage will be force to either reduce the number of staffs, or reduce their work hours. In some case, they may even need to close down their business.

My point being is increasing wage is not always a bad thing, but that should be the negotiation between the employers and employees. So whether the increase is reasonable or not is subject to the profitability of individual business and the value an employee is bringing to the company.

Furthermore, for staffs working in a minimum wage environment, the chances are a significant amount of their customers could be earning low wages too. (i.e.: fast-food restaurants). If the company needs to remain its revenue, then it would eventually pass on some of the wage increase to its customers through price increase of their products. Therefore, in some degree, the minimum wage is really asking low wage customers to subsidize for the low wage workers.

 

[Meandering]

Jacob,

As a content writer at Appraiser Newbie,

How do you get new appraisers to reconcile, they will be working for transactions, of borrowers obtaining 30 year mortgages for homes which will have to be re-built in 10 years, because the world is going to end in 12 years if they drive a fossil fuel burning vehicle to inspection, and use fossil fuel generated electricity to charge their cell phone, or car if electric, and to run their computer?

Maybe in the face of a "new reality" that the "Green deal" might happen,
Content concerning the impact of the "green DEAL" should be discussed with people who think they want to be appraisers,
if the world isn't going to be around in 12 years.

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[ucbruin]

Will $15 in 2024 be the first brick removed in the foundation of the US economy and standing in the world?

Is $15/hour in 2024 truly a tipping point?

But

$15/hour in 2034 not a problem?

 

[chad hampton]

Can we all at least agree that the current system isn't working?

If you can agree with that, then don't be afraid to try something else. Fear is a very powerful emotion. And the folks that enjoy the benefits of the status quo know that.

 

[Randolph Kinney]

Will $15 in 2024 be the first brick removed in the foundation of the US economy and standing in the world?

Is $15/hour in 2024 truly a tipping point?

But

$15/hour in 2034 not a problem?

It all depends on inflation and automation. The higher the minimum wage increases, the more it pays to automate.

In April, 2016, California Gov. Jerry Brown signed the state’s $15-an-hour minimum wage law into effect.

Federal jobs data for 2018 suggests that California’s rural manufacturing base might be getting hammered by the higher mandated minimum wage.

Unless a future governor waives the scheduled increases due to economic weakness, the government mandated hourly wage hikes will keep coming—$1 per hour every year—until they reach $15. per hour.

California coastal cities are ahead of the states minimum wage.

 

[Randolph Kinney]

Wages should reflect the cost of living in a geographical area and the level of skill or experience required to do the job.

Having national minimum wage will always be set too low for New York and California. Even now, the lowest paying job in Brevard, NC is a crew member working at McDonalds at $8.50/hr.

North Carolina matches the federal minimum wage of $7.25/hr.

 

[ucbruin]

Wages should reflect the cost of living in a geographical area and the level of skill or experience required to do the job.

Having national minimum wage will always be set too low for New York and California. Even now, the lowest paying job in Brevard, NC is a crew member working at McDonalds at $8.50/hr.


North Carolina matches the federal minimum wage of $7.25/hr.

So fees for 1004 in Mississippi, Arkansas, Carolinas and the like should be around $200 or less?

 

[Randolph Kinney]

So fees for 1004 in Mississippi, Arkansas, Carolinas and the like should be around $200 or less?

You sound like AOC. Your logic escapes me how you leap from minimum wage to a statement on 1004 fees.