New “min” wage

[andrew_j]

I found in my state(NH) to afford average rent of 2bdrm where housing is not more than 30% of income the “min wage” is $32/hr.

Our laughable min wage in state is set at $7.50/hr however I believe that is for J visas and summer seasonal help. The real min wage in my area is $15-$19/hr to beg for help at less desirable work places.

 

[SC Maintenance]

Minimum wage was meant for entry level / experience gaining positions. It was never intended as a living wage.

Having said that, I believe its still too low as it hasn't changed since 2009. It should be around $11 - $12. Which seems right since that is about what fast food starts 16 year olds at around here.

The market self corrects when its balanced.

 

[John105]

imho what I learned in college, is in fact true. Economics isn't a hard science, but it can be used to explain behavior.

Minimum wage is a floor. We all know the problems that arise when they exist, be it wages, or apartments.

Since when would this be determined based on the cost of housing? there are people who spend 200% of their income on a new car, it's a choice.

p.s. years ago I heard a girl who looked to be 17 maybe, say this is BS, I'm getting $16. At a grocery store helping with bagging.

 

[joekingcorvette]

I was in Florida in January and a chain burger place had a sign where they were paying $25 per hour for part time help. The only problem is these jobs to not come with vacation, medical, dental and paid holidays therefore it's probably within reason. Part time employees should be treated decent and if not, find another job. As far as minimum wage a few years ago people were crying when they wanted to increase it to $15 per hour. It's amazing how everything from wages to consumer goods went up in price so quickly in a few years.

 

[John105]

I was in Florida in January and a chain burger place had a sign where they were paying $25 per hour for part time help. The only problem is these jobs to not come with vacation, medical, dental and paid holidays therefore it's probably within reason. Part time employees should be treated decent and if not, find another job. As far as minimum wage a few years ago people were crying when they wanted to increase it to $15 per hour. It's amazing how everything from wages to consumer goods went up in price so quickly in a few years.

That's a very good wage imho. to me if it's a chain burger place, that should be the mgr or asst mgr, not a counter person.

When I was a waiter making $2.xx/hr (1980's) health care was an option, if you can believe that.

Anyway, nowadays, most health care that employers provide, other than if municipal or government, is pretty bad. Even people making 7 figures complain about deductibles and they are rushing come October to get all these procedures done. Sometimes, I think that employers offer perks that can't be quantified, such as unlimited time off, car detailing at work, all useless stuff. But when health care costs $30k per employee, suddenly even a $500k employee isn't worth that.

 

[joekingcorvette]

That's a very good wage imho. to me if it's a chain burger place, that should be the mgr or asst mgr, not a counter person.

When I was a waiter making $2.xx/hr (1980's) health care was an option, if you can believe that.

Anyway, nowadays, most health care that employers provide, other than if municipal or government, is pretty bad. Even people making 7 figures complain about deductibles and they are rushing come October to get all these procedures done. Sometimes, I think that employers offer perks that can't be quantified, such as unlimited time off, car detailing at work, all useless stuff. But when health care costs $30k per employee, suddenly even a $500k employee isn't worth that.

All of the jobs I had would provide good health insurance plans and after the deductible of $4000.00 is met you pay $0.00 out of your pocket. I guess it depends on the area where you live. As far as wages there is a brand new gas station that opened in my area paying $25 per hour to start. Many burger places pay $20 per hour. I remember many years ago working at McDonald's for $2.00 per hour.

 

[Dave Hess]

It’s a difficult topic cause so many places in the USA vary so much.

$3.35 an hour when I started working at 15 years old.

I told that to my kids and they thought I was joking.

 

[alarmguy]

Minimum wage was meant for entry level / experience gaining positions. It was never intended as a living wage.

Having said that, I believe its still too low as it hasn't changed since 2009. It should be around $11 - $12. Which seems right since that is about what fast food starts 16 year olds at around here.

The market self corrects when its balanced.

Well said, I find it unbelievable that some people think they are entitled to a living wage.
If you can’t cut it, figure it out.

 

[SC Maintenance]

I am renting an apartment for my daughter who is going to grad school. Is not near the school, simply on a bus line that gets her there, in a nothing special part of town. Apartments are starting at $1700 a month for under 500 square feet. Realize this is South Carolina not SIlicon Valley.

Using the 30% math you would need to make about $70K a year to rent said apartment.

 

[Boomer]

Back n the mid 1960's, I worked at a frozen food factory two summers while in college. IN PA, there was no overtime for this job because it was agriculture related. My pay was $1.40/hour and I worked 60 hours a week for about 10-11 weeks each summer. HOWEVER, by saving all the money I earned, I was able to pay a full semester of tuition, room and board at the private liberal arts college I attended.That same college today lists a year at well over $50,000!

 

[PWMDMD]

The fact is setting a minimum wage above the market equilibrium price results in a scarcity of minimum wage jobs. I agree with SC Maintenance that these jobs were never meant to provide a living wage but they clearly are the only option for many people. So, if you're actually employed and making $16.50/hr (the minimum wage in MA) then it's good for you. If you're looking for a minimum wage job there are likely fewer available so bad for you. This happens because the increase in wage expense does not get passed on entirely to the customer as there is also an equilibrium point for say McDonalds cheeseburgers or the price McDonalds is trying to sell a cheeseburger at and the price people are willing to pay for it. Eventually, McDonalds can't increase the price anymore and they are forced to hire fewer people to keep wage expenses down. The same economics apply to unionization. If you're trying to make a living wage on $16.50 per hour, good luck!

 

[alarmguy]

I made $1.85 an hour but that was the early 70s
I would feel privileged if my boss would let me work over 40 hours a week to get overtime and some holidays.
I bought my own cars, paid my own insurance, nothing was handed to me except college.
My siblings and I were given two choices at the age of 18. Go to college and parents would pay or no college then get a full time job and pay room and board until you had your own place

 

[SC Maintenance]

Back n the mid 1960's, I worked at a frozen food factory two summers while in college. IN PA, there was no overtime for this job because it was agriculture related. My pay was $1.40/hour and I worked 60 hours a week for about 10-11 weeks each summer. HOWEVER, by saving all the money I earned, I was able to pay a full semester of tuition, room and board at the private liberal arts college I attended.That same college today lists a year at well over $50,000!

$1.40 in 1965 is equal to $14.09 today according to the CPI calculator. Most believe CPI is understated because it undercounts housing costs mainly (it was never intended as a cost of living calculator - its a macro economic tool).

So I will state again minimum wage is way too low, even for brand new workers - but still doesn't need to be a living wage.

 

[SHOZ]

The value of money is based on how well those who provide it manage things. They have to have inflation or they cannot 'grow'. The problem is they think they can manage it.

5 silver quarters of 1960 minimum wage is equal to todays current value for 90% silver melt or about $25.

 

[Dave Hess]

I made $1.85 an hour but that was the early 70s
I would feel privileged if my boss would let me work over 40 hours a week to get overtime and some holidays.
I bought my own cars, paid my own insurance, nothing was handed to me except college.
My siblings and I were given two choices at the age of 18. Go to college and parents would pay or no college then get a full time job and pay room and board until you had your own place

Dang….

I always thought you were just a few years older than me. LOL

 

[Astro14]

The value of money is based on how well those who provide it manage things. They have to have inflation or they cannot 'grow'. The problem is they think they can manage it.

5 silver quarters of 1960 minimum wage is equal to todays current value for 90% silver melt or about $25.

View attachment 227669

Not by fiat, per se, but robbed by inflation.

 

[John105]

All of the jobs I had would provide good health insurance plans and after the deductible of $4000.00 is met you pay $0.00 out of your pocket. I guess it depends on the area where you live. As far as wages there is a brand new gas station that opened in my area paying $25 per hour to start. Many burger places pay $20 per hour. I remember many years ago working at McDonald's for $2.00 per hour.

Isn’t $4k a lot? For example, mine was $1800 and in Dec my doctor sent me for 3 ultrasounds and an X-ray. I knew I had $0
Towards deductible and decided to do them and it was $1200.

Today on my wife’s it’s $40. I didn’t wait.m

Also after the $1800 it was 20% coinsurance up to around $5k max out of pocket. Meaning thousands when it already cost maybe $7500/yr

 

[alarmguy]

Dang….

I always thought you were just a few years older than me. LOL

Well let’s change that from early 70s to mid 70s
(and Stairway to Heaven was out for a few years already)

 

[joekingcorvette]

Isn’t $4k a lot? For example, mine was $1800 and in Dec my doctor sent me for 3 ultrasounds and an X-ray. I knew I had $0
Towards deductible and decided to do them and it was $1200.

Today on my wife’s it’s $40. I didn’t wait.m

Also after the $1800 it was 20% coinsurance up to around $5k max out of pocket. Meaning thousands when it already cost maybe $7500/yr

Not sure exactly what you mean however if you have a huge bill over $250,000 and you only pay $4000 deductible IMO that's a pretty good deal. I have never hit the $4000 deductible when I was working and am now on the hind teat of Medicare/SSI and they pretty much cover everything.

 

[PWMDMD]

The value of money is based on how well those who provide it manage things. They have to have inflation or they cannot 'grow'. The problem is they think they can manage it.

5 silver quarters of 1960 minimum wage is equal to todays current value for 90% silver melt or about $25.

View attachment 227669

So this enters into the great debate about government regulation. I have said here several times if left to their own devices, businesses in a totally self-regulated market are a nightmare because they don't self-regulate, they plunder and pillage to their benefit. Only $12.50 of that $23.55 difference is due to inflation and the other $11.05 is due to other reasons including businesses pay less because they can and that maximizes profit. Even the states with high minimum wages only cover half of that difference between 1964 and 2024.

On another note - there is not a stable amount of gold in the world and one issue is the US isn't the largest gold miner in the world. China and Russia both mine almost twice as much gold as the US does. Our growing economy would have a voracious appetite for gold, much like oil, and much like oil we'd be very dependent on other countries to obtain the gold we'd need to back our FIAT, and this could allow these countries to exert political pressure and manipulate the price. The US is the largest oil producer in the world by a wide margin, producing more than Russia and OPEC, and look at how much influence both can have on oil prices. The US is the 5th largest gold miner in the world and so the gold standard wouldn't represent the stable value measure it would need to be to keep the dollar stable. We outgrew the gold standard...