Re: Help with a Minimum Wage Model

From: Charles Hixson (charleshixsn@earthlink.net)
Date: Sun Apr 06 2003 - 15:39:30 MDT

  • Next message: Dehede011@aol.com: "Re: Help with a Minimum Wage Model"

    Dehede011@aol.com wrote:

    >In a message dated 4/5/2003 11:21:14 PM Central Standard Time,
    >rafal@smigrodzki.org writes: As usual with such schemes, those who are
    >burdened so, will attempt to reduce the payout, e.g. by substituting
    >mechanized labor, stopping to patronize businesses which have to increase
    >...
    > Figuring here on the back of my envelope I will lose the savings in
    >labor as that is lost due to the payraise.
    >Ron h.
    >
    I did a few spreadsheet calculations, involving the current minimum
    wage, the hours in a week, and the cost of rent in substandard housing
    in the area where I live. Working full time at minimum wage, and
    without counting taxes or any other expenses (e.g., food, clothes, etc.)
    a persons would end up with less than $7 per day after paying their
    rent. (I forget how much less, and I made several optomistic assumptions.)

    You might want to think about that, when you are recommending that the
    minimum wage be lowered or removed. Effectively, it already has been.
    People can't avoid paying taxes, so they would actually end up in the
    hole for paying their rent at the end of a month, even with no other
    expenses at all. (e.g., food, clothes, medicine.)

    Now actually the way people live through this is by stuffing an illegal
    number of people into one apartment. So this means that they are at the
    mercy of any authority who has it in for them, and since they are easy
    targets there are many who take advantage. And I forgot to include
    transportation. Another necessity which must be paid, and can't be
    afforded.

    Your estimates and models are based on assuming that free choice is
    available. This is in contradiction to the observed facts. If you want
    to know why a disporportionate number of low income people turn to
    violent crime, look at the above and consider that desperation might be
    involved. Or a reluctance to willingly sign themselves over to a life
    of slavery. (Yes, it's a bad answer. But desperation frequently yields
    bad answers.)

    And yes, I know individuals who have escaped from the trap. This
    doesn't alter the fact that for the majority, it is real, present, and
    appearantly unavoidable. If you strip hope from people, don't be
    surprised if they strip life or property from you. It can be reliably
    predicted that this wouldn't help most of them much, but *you* wouldn't
    be there to know.

    I have never supposed that "Homeland Security" was mainly intended to
    protect us against foreigners. I look at what they are doing, and
    observe who is mainly being observed, and I figure that where they are
    paying attention is where they intend to act. Most of the powers they
    have been granted have nothing to do with stopping foreign terrorists,
    and a lot to do with controlling citizens. Especially those who have
    been "law abiding". So I feel that the government is well aware that it
    is driving many citizens to the point of desperation, and is intending
    to be able to ride out the storm. Like Napoleon as the Corporal of the
    Guard (I think he was still a corporal then), they will be able to draw
    a deadline, and kill anyone who crosses it. I don't know how that bit
    of history will work out this time around, but if we live to see it, we
    will consider ourselves quite lucky if we live through it.



    This archive was generated by hypermail 2.1.5 : Sun Apr 06 2003 - 15:49:18 MDT