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Interesting Article About Mandated Minimum Wages And Job Creation

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Randolph Kinney

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Government is, however, very good at destroying jobs and incentivizing the reallocation of jobs to more highly skilled people and even to robots.

Government-imposed mandates do not create wealth. Instead, they create a misallocation of resources.

Under minimum prices of wages, the unskilled, the newly sober, the recently-released felon and those re-entering the workforce for other reasons (such as raising children) are reallocated from starter jobs where they can acquire basic job skills, to the unemployment line. And because less is produced, lower overall aggregate living standards are the long-term result.


The grand experiment to sovle wage inequality by force from the bottom will compress the wage scale and the surplus labor created will be expanded on goverment support programs. Capital goes to automation and overseas for labor cost savings.

Wonder why the economic plan of "expanding growth from the middle out" never works? They have been saying that for 8+ years and that was said also in this election cycle.
 

J Grant

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http://money.cnn.com/2016/11/17/technology/trump-tech-populism-automation/index.html

How is building a wall , or any of Trump's ideas going to solve this? (they don't) . The only check I see on it is if corporations keep reducing human labor and more and more people are unemployed/marginally employed, how will people afford to buy their products or services? If "they" want to create a basic income fund for all the laid off workers, fine, but is that realistic?
 

Randolph Kinney

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If we set aside the many emotions generated by immigration and just consider statistics, we find that the U.S. added almost 14 million new immigrants in the decade 2000-2010. A Record-Setting Decade of Immigration: 2000-2010.

In periods of strong job growth, demand from employers is high enough to absorb the added supply of labor from native population growth and immigration. In periods of stagnant job growth, immigration adds to the oversupply of native labor from population expansion.

immigration11-16.jpg


Common sense suggests high immigration becomes an economic issue when job growth no longer absorbs net native population expansion and the influx of immigrants.

The fourth dynamic generating labor supply/demand imbalances is automation. Though automation has been a dynamic force reducing the demand for human labor for hundreds of years, the pace has increased as software and robotics are now increasingly replacing higher-skill workers.
 

J Grant

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Aside from posting more charts, what is the answer as more and more jobs including professional level jobs replaced by AI or marginalized by it, what do you think all the displaced from employment Americans will do? We won't have any safety net or a small one, unlike other nations that invest in that. So what do you think will happen?
 
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Mr Rex

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Work at the sprocket factory?.

 

Randolph Kinney

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Aside from posting more charts, what is the answer as more and more jobs including professional level jobs replaced by AI or marginalized by it, what do you think all the displaced from employment Americans will do? We won't have any safety net or a small one, unlike other nations that invest in that. So what do you think will happen?

Okay, charts mean nothing to you. To me, the majoriy of jobs created were filled by immigrants (legal & illegal).

Automation is the natural response when tecnology is cheaper than labor.

Unless changes are made to limit labor supply, more of the same. Unless changes are made to cause companies to expand here, more of the same.
 

Terrel L. Shields

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Chick-fil-a & Taco Bell both told a small town mayor that the town needs a pop. of at least 5,000. Locals complained they wanted these two franchises. So the city planning board approved a large housing project that will add hundreds of apartments to a town of 3,500. The development is sponsored by a chicken processor, who hdq's in the town to the south (larger) and has multiple plants (chicken, feed mill, dog food plant, hatchery) in a smaller town north. Who will live there? Immigrants from Guatemala, Mexico, and U.S. Somalia imported to keep labor prices low. The company didn't want them in their town and the small town said no way. Meaning additional schools will need built on top of the new ones just completed, new sewers, etc. all just to get a ****ing Taco Bell.

 
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