Feed on

I vaguely recall people arguing, during the health care “debates” that the increased cost of health care puts American firms at a disadvantage and hurts American workers because health costs eat up so much of the firms’ labor costs – so pay is lower than it otherwise would be, and firms have to skimp on valuable things like job training, vacation, and other desirable working attributes. It was even thought that high health costs hurt American employment. Ignore for now whether any of that is true and ponder this:

Many people, including wealthy retailers, are arguing that not only do “we” have a moral obligation to force some employers to pay more for their workers than they do today via increases in the minimum wage, but that by putting more money in the pockets of workers and by reducing labor turnover, that increasing the minimum wage will not only not harmful, but actually “good” for the American economy.

Now, I CAN make an argument, an awkward one, about minimum wages being “good” but just keep in mind the first paragraph above when you start hearing things like this. As we like to say here, YCHIBW.

Have a great weekend.

One Response to “Weekend Ponderance: Labor Demand Curve Edition”

  1. Harry says:

    Not arguing here with you, WC, but what wealthy retailers? Do we refer to Sam Walton, one of the retailers who succeeded, or the original owners of Abercrombie & Fitch, the ones who safari jackets? Retail is a very tough business, not the same as if you go to work for any company where your future is at risk, even if you go with a company that fires 100 out of 1. It takes bravery and smarts for starters, to open a store, and a lot of labor, if one were to pay one’s self, at $.01 per hour.

    So who are these people talking about the unfairness created when people turn themselves into rich people when they build a business, collect a boatload of money, and then perhaps go on to go public, and get a few more thousands of millions? What the hell is wrong with that? Because we, sitting around hoping for something did not get it and are covetous of their wealth? In any ethical conversation, folks who defend covetousness lose, even if they reject the Ten Commandments.

    So, how about promoting laws to make more fair the profits of North Korean retailers, Cuban retailers, or Venezuelan retaiers who sell toilet paper, chicken, and Che Guevara tee shirts?

Leave a Reply