How a $15 Federal Minimum Wage Might Affect the Economy | WSJ 

Amazon and other big techs are already paying 15 and automating lots of robots. They must be super happy raising to 15$, because it will just drive out all of their competitors (small businesses) .

I really appreciate how WSJ is pretty much the only news source I find that doesn't blatantly try to twist in their own narrative. Giving an equal floor to two economists of differing opinions and mentioning problems with both sides. 10/10 WSJ.

It's not about a minimum wage.... healthcare, education and etc needs to be fixed. You can raise it to $20/hr and still not be able to afford college if they keep adding a few thousand every yr to the tuition.

The problem I'm having is that I NEVER hear anything about the increased wage equaling increased buying power. It's always about job loss due to labor costs, never increased revenue due to increased buying power.

What isn’t being taken into account: automation. How much motivation is enough for a company to start automating?

They raised minimum wages here in AZ to $12 an hour... Rents and cost living went up the same %. Taxes took in more money.

The answer also lies in reducing health bill costs, education, food and rent, transportation, and the y. Which I forgot what it stands for.

Im on both sides, but we have to keep in mind that prices will go up regardless of minimum wages

People also seem to forget what 15 dollars means in different parts of the country. 15 dollars in Chicago isn't too much. It helps but isn't like over the top. 15 dollars in a medium sized town in the midwest is a lot though.

"if businesses can't offer a 15 dollar minimum wage they shouldn't even be open"- she clearly has now idea how the economy operates. Inflationary-pressures, incentives to hire, then people complain that businesses drift to digitalisation.... doubling minimum wage is a huge risk

Simple math and basic economics. Companies exist to make money for their owners (stock holders). They do not exist to create jobs. You want a good job? Create more value for your company than it costs them to pay you. Artificially inflating a wage beyond the market value for that labor only accelerates inflation. Not only does it help devalue the dollar, you're right back to needing another wage increase in another few years. Vicious cycle that many don't seem to understand.

This is why most USA companies are hiring more in developing countries.

Once price increases due to higher labor costs, the new poverty wage will be $15 and the fight for $25 minimum wage will begin and once price increases (inflation) due to higher labor costs, the fight for $50 minimum wage will begin......

“I can’t even put a roof over my head”. …. Bruh

What will happen is, companies will turn workers into contractors who become perma temps ( permanent temps) with limited benefits

If I am a employer and my labor expenses just double-am I going to keep my prices the same? Or am I going to decrease my number of employees? Or am I going to raise the prices of my services and/or my products? There doesn't seem to be a win win situation. Somebody is going to lose.

Up to $15 companies may cut their employees amount like ½/¼, and expect the rest to do multitask to compensate the lost worker maybee? Which can means harder work for employees

Shouldve also gotten someone who is currently making 15/hr

Why must the minimum wage be the same across the country for every single job? Wouldn't it make more sense to set it based on industry, location, and company size? Man, politicians are so useless

I'm tired of these reports dancing around the real issue. Each side argues past the other instead of responding directly. Conservatives can't argue that living on $7.25/hr is sustainable. But progressives can't deny that this incentivizes businesses to adopt automation. Every time the minimum wage rises, funding for automation grows. What should be happening is a discussion about how to create a UBI and retrain workers, not fighting against automation. The Uber vs California issue perfectly encapsulates it. Uber might have to pay its workers & give them benefits, but they're just waiting until self-driving cars are accepted. Then they'll furlough all the workers to avoid these rising costs.

I don't know where I stand with the minimum wage increase. What I do know is that advocate they interviewed for this is so unconvincing that she literally hurts her own cause

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If these corporations weren't so greedy this wouldnt even be a discussion

We need money going towards job training rather than minimum wage. We are facing shortages in various jobs that have high earning potential.

Why does everyone talk about “how can we pay people more?” Instead of “how can we make people’s skillset more competitive on the market?” I just graduated college and yes, it taught me a lot of skills, but the most critical skills that I have taught myself on the internet and pursuits on my own have made me far more competitive than bartering for a higher wage. Also, we need to teach people how to negotiate a higher wage. Many minimum wage jobs have negotiable pay, but YOU have to negotiate.

if anyone really bothers to pay attention, the rate of inflation (i.e., cost of goods) has gone up much faster than the rate of minimum wage (which hasn't changed since *_2009_* )

In 2018, South Korea increased its nationwide minimum wage by 17%. The result: low-paying jobs were erased, while those who were employed enjoyed higher pay, increasing the wealth gap. Of course, the United States is not South Korea, but definitely something to consider.

Higher wages doesn’t necessarily mean you’ll keep that job. Profits still need to be made for companies

very fair video, appreciate that they made sure to explore the multiple impacts of the proposal, rather than trying to just label good/bad.

"Hello robots..."

I'm all for a fair working wage, but I'm afraid that this will just accelerate robots and AI taking over menial jobs.

Clearly this person has not owned a business, considering how she feels it is so easy to pay employees top dollar as a new business. Please don't run for politics.

Look up the minimum wage of the five states with the highest homelessness rates, then look up the minimum wage of the five states with the lowest homelessness rates.

Amazon: pushing for higher minimum wage Also Amazon: first no checkout supermarket...

4:30 the guys says people are not having jobs, but unemployment was literally at the lowest point before the pandemic like????

I like the argument and counterargument style of the video. Really gives a feel for all sides of the matter and leaves me just a bit more knowledgeable.

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The collapse of interest economy is just kick started

Not from the US, but having a minimum wage at $15 an hour like it is here also forces companies to make jobs that are worth that much. I'm sure you've gone to fast food places or grocery stores and there's people just standing around talking. Companies don't care that much when they're paying you $7.25 an hour. Also being more efficient with other things in their business to make it worth it. Workers with low skills are basically fighting there way to the bottom of whatever the minimum wage is so when it's cheap companies don't care about being efficient. Even though I'm nowhere close to minimum wage I think it's fair that a person working 40+ hours should have a livable wage. The minimum wage has been $15 here for over 5 years and before 2020 we had the lowest unemployment since the 70's.

6:21 a large majority of small businesses are restaurants, and those have little profit, a company's largest cost is employees, and you are DOUBLING that, literally every single restaurant would close.

Instead of artificially raising the minimum wage the focus could be on reducing the cost of HEALTHCARE. That would keep more money in people’s pockets and lower business expenses, boosting the economy. This issue has been untouched for too long. It is time for MAJOR CHANGES in this inefficient sector which is draining people’s budgets.

Then $15 will be the new zero

A miniscule wage increase does nothing when housing and rent prices outpace those gains by 1000%. Fix the root problems that put people into poverty (inflation, high housing prices, predatory lending) and dispel this fantasy that increasing wages by a miniscule amount will fix this problem.

Make no mistake! The only negative impact of a $15 minimum wage is on billionaire bank accounts!

I agree that the minimum wage should rise, but gradually. Unfortunately, Congress has not made this happen. Pushing a doubling of minimum wage will only cause shock to small businesses who often employ low wage workers and operate with low profit margin. This is not going to significantly impact businesses that hire well paid, highly skilled workers, and make big money on the fruits of their labor. Stating that a business that cannot afford a higher minimum wage, is unhealthy, and should therefore no longer exist, is equivalent to stating that a person who cannot educate themselves and strive for higher paying work is weak and not fit to live. In more expensive regions, a person making $15/hr, or approximately $30k/year, is also likely in the food assistance programs even now, especially if supporting a family. Food assistance will still exist because someone is always at the bottom. So how am I saving money, Mr. 35cents?

Raising the minimum wage to such high amount is the beginning of Socialism in America, with high inflation, high prices for food and huge unemployment ...

I think it should be raised, but $15 is waaay too high, should be about $11-$12 right now.

With inflation today $15 isn't enough. Two years ago I considered $15 the minimum living amount. Inflation now needs to change. We need at least $20.

About a million US Workers would lose their jobs. About 9 million US Workers would benefit. #DoTheMath

Can you remember when a person took your order at Micky D. Now the customer punches his order into a kiosk. Expect more jobs to go to drobots.

Sure but 15 dollars in downtown LA is very different from 15 dollars in Mississippi where it’s close to the median wage. Why not set it by state or district rather than a unilateral rate?

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Amazon are begging for this. Cause as soon as their competition have to first people they can automate their competition out of existence. They are pitching this everywhere

Should eliminate minimum wage all together.

LET EACH STATE DECIDE THEIR OWN MINIMUM WAGE!!! Don't FORCE a one-size-fits-all approach onto all states. Consider the different costs of living. It is easier for a state to change than for the entire country to change. Different people want different minimum wages or none at all, let each state control their own path. Don't force your views onto everyone else.

This issue has two sides. If minimum wage is increased, it is harder for small businesses to hire more people. If minimum wage is exclusively required for large corporations, then demand will fall for workers of small businesses, which makes things unfair

This is being pushed by big corporations who can actually pay it while small businesses go under

Some of these low skilled workers wouldn't take much automation to replace

For small businesses you need to provide tax credits for paying minimum wages. Otherwise small businesses can't survive.

Living Wages for each state adjusted for cost of living > One standard Federal minimum wage. #jakehunter88

Democrats have 15 trifecta state governments across the country. If they want to increase the minimum wage to $15 (AOC said the minimum wage should actually be $24 an hour), no one is stopping them from doing it.

I have a really revolutionary idea for that chick... Ask for a raise, or go get a job that pays better 🤯

There’s only 1 real minimum wage: $0. That happens when you get laid off because your company can’t afford to pay you $15/hour.

Minimum wage is meant to be an entry point into the workforce, not a living wage for a family. Even the, it would be 2 people making minimum wage not 1.

As a parent I'm really curious what this will do to childcare cost.🤔 Childcare is already unaffordable for most families, If minimum wage doubles? Does that mean childcare cost doubles too? I can see more parents forced out of the work force due to cost.

You shouldn't be thinking about raising a family on a minimum wage. Lol!!

This is all your fault for abolishing unions and vilifying them. If workers were unionized, they'd go on a strike in their millions if their employers wouldn't raise the wage and benefits. Now it's everyone for themselves... and in that situation the employers win.

Whenever you hear "raising minimum wage will result in higher prices and layoffs", remember that's not basic business. It's corporations making a choice: pay more or give shareholders billions more. Example: Costco vs Walmart

You should ask a small business owner how they’d react to the wage too

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Australia has living wages for a minimum salary, people have more money to spend and business has more customers and businesses. Students can earn enough to survive working casual hour/part-time while studying. How come US politicians doesn't talk about the economic gain from extra businesses due to more income?

If a small business has to choose between Robot = $5 per day + no taxes Human = $15 + taxes Which do you think they would choose?

in Europe minimum wage IS a living wage, and yet in USA they make it look like a feast of magic, smh.

Have all elected positions, from dog catcher to US president, be paid the minimum wage. Watch the minimum wage be raised.

No thanks. I don't want to see my favorite local restaurants go out of business.

Inflation will rise eventually. But it does help more than it hurts.

MORE B.S. from these corrupt politicians.

A minimum wage that high is an amazing way to destroy small businesses

This finance issue and not a political one. Stop politicizing everything. Do the numbers.

$15 min will make $4 milk into $7

It is very ironic people complain about the high unemployment at the same time asking to have higher minimum wage. It is the same people who prefer to not work and depend on the government hand outs instead.

Why is it OK to use American tax payer money to Bailout HUGE corporations but when it's time to Pay Americans a fair wage, we need to "think about it"?????????????????

The future looks dark, people want to make more and just serve frozen food and still can’t get the order right, “I said no mayonnaise”

Why not automatically raise the minimum wage by the rate of inflation?

Minimum wages do not hurt big corporation. They always hire enough skilled employees at market salaries. Minimum wages hurt SMEs a lot because they rely on cheap labor to compete with the big sharks in the market.

The thing is corporations don’t care about minimum impact, if it’s not making more money than last year, they are firing people

If a business can't run without the paying their workers more than $7.25 an hour, especially in the US, then it shouldn't exist.

$15 MW would infuse the economy at the main street level with $435,000,000,000. That is growth! That is decency.

Sometimes i feel that the south actually won the civil war and slavery in the USA just got rid of some of the extra steps afterwards, allowing to scale up the operation. From this viewpoint, it makes off course a lot of sense that republicans are against raising the minimum wage - it could lead to some of the slave workers escaping poverty ....

If you double minimum wage, do you also double someone currently making $15 or are you just devaluing them? Shouldn’t you double everyone?

Make everyone a Jeff Bezos, advocate 15 Billion dollars per hour minimum wage. Who said hyperinflation can't solve all our problems?

Can we talk about why this young lady is making minimum wage at 21? What kind of education does she have, what kind of family did she grow up in? Without looking into the details, raising the minimum wage is just slapping a bandaid on a very complex problem. Imagine a doctor prescribing the same medicine for all patients. That’s what raising the minimum wage is.

With record unemployment after COVID-19, this is to the worst timing to introduce this policy....

If the Seattle studies proved anything, it's that minimum wages effects are delayed and that they depend on the industry being measured. It isn't as simple as supply and demand. In the short term, raising the MW means that business compensate by reducing work hours or firing, but in the long term, as the effects reverberate throughout the entire economy, purchasing power does increase, and the businesses that cut workers and hours have to hire those workers back on the higher wage and raise the prices of their goods to compensate. When this equilibrium is reached once more, people are essentially in the same place they were before the MW raises, except some industries have decided to further offshore or automate. This is partly why developed countries trend towards service sectors, because everything that can be moved offshore or automated due to these policies eventually will be, while it is impossible to offshore the person flipping your burgers (although automation is further encroaching here as well). In this sense, the MW fails to meet its desired objective of increase the purchasing power of the average worker, because it returns them to equilibrium in an even worse situation for the labour market. If you don't want people to struggle economically, your best bet would be to eliminate the MW so that some of these industries can return home, and then institute some kind of UBI, as this would meet your objective without distorting the labour market. Alternatively, you can take a Scandinavian approach to the problem and give unions decision making powers in a company, as they can negotiate better wages independently in a way that won't cause massive inflation across the board and can veto attempts to offshore their positions. There's a sense of urgency to give people more money due to increasing cost in healthcare, education, and housing, but those are separate problems with their own fixes, it doesn't chance the fact that the MW is an ineffective policy.

And by setting a floor preventing wage deduction, which artificially raises prices (in this case wages) above the level of supply and demand, a surplus of supply of workers will be created leading to more unemployment

If a company cannot provide a liveable salary to its employees, it should not be in business.

Do people not understand that if labor is more expensive, goods will be more expensive, thus negating the perceived spike in buying power? It’s common sense. I’m a drop out.

The point rests on the velocity in which that increase is done. Doubling the minimun wage in just 5 years is too fast, a 15$ minimun wage should be a more long-term think, kind of increasing it by inflation+75cents or something like that, so that the increase is enoughly progressive that the economy has time to adjust and plan for it

Too many excuses on why minimum wage should not be raised its wrong poor low-income people have the right to prosper to.

This happened in Ontario. No job losses or conversion to temp or contract jobs. Just millionaires having to drive an E class instead S class Mercedes