http://www.npr.org/blogs/thesalt/2013/10/16/235398536/why-u-s-taxpayers-pay-7-billion-a-year-to-help-fast-food-workers
I found this article to be very interesting, and as we will be discussing labor in the food industry this next week I felt that this article tied into our discussion at least somewhat. While it may not discuss a farm worker's labor issues, I feel that it is still very relevant to the food system as a whole. I know this subject may be slightly touchy for some individuals as unions and workers rights discussions tend to get very politically charged and often end up being pointless - I would just like to hear some peoples personal thoughts on what raising wages not only in the fast food industry but also in the food production industry as a whole would possibly do to the price of food, the excess taxpayer spending associated with food workers, and how this may affect the way we as Americans perceive the food production industry.
Thanks for reading,
Riley Hilderbrandt
That's really shocking. It's interesting how different the narrative that is being used to oppose the wage increases is from the reality of things. The economist does have a point that it may not effect much. After minimum wages are increased, there is (at least according to my economics professor) a period of time where the increase raises the workers' spending power until it eventually evens off due to inflation. However the minimum wage in America has not been increasing at the same rate as inflation- real spending power of the minimum wage has plummeted since the 1950s (http://www.bloomberg.com/news/2011-12-28/minimum-wage-in-u-s-fails-to-beat-inflation-chart-of-the-day.html) and because of it taxpayers are subsidizing unethical business practices.
ReplyDeleteThat is a good read that brings up the good ole question of minimum wages being too high, too low, just right, or not good at all. I agree with Michael Strain. I believe that raising the minimum wage will lead to job cuts to cover for the hikes in wages. With a maintained minimum wage or even no minimum wage, employers are able to drive prices lower, giving workers more purchasing power by a means that is more natural and free-market orientated. With lower prices, consumers alike get more bang for their buck, which increases overall consumer spending. This increases the GDP, which in turn could result in lower tax policies for all brackets, but this is only mere speculation. However, history tells us that this timeline of events occurs with these conditions.
ReplyDeleteIt's difficult to determine what the minimum wages should be, but I do think that $15 is rather high for a minimum wage. The article mentions the "In-N-Out Burger" joint and how they pay their employees higher than minimum wages but they still make a profit. With that certain instance in mind, I do think that if some of the fast food places raised the wages of the employees, they wouldn't be making a profit. I think that the popularity of the restaurant will determine whether or not the increase of employee wages will still allow the restaurant to make a profit. The article was right, in my opinion, when it said that often times, people think that fast food workers are just teenagers living with his/her parents, but when I go to fast food places, depending on the location, most of the workers are older people. I do think that minimum wage could be raised some, but depending on the place, the outcome of the raise in wage could have a positive or negative effect.
ReplyDeleteReading the article reminded me of a comment that Elizabeth Warren made a few months ago: that if wages would have kept up with worker productivity, then minimum wage should be around $22/hr right now. With that in mind, an increase in minimum wage seems essential. Because a system that is driven by the exploitation of workers is dehumanizing and self-destructing. By increasing pay, workers can have the flexibility of maybe not working so many hours (many people work three jobs to be able to get by), the hopeful reduction in poverty can lead to greater physical and psychological health for workers, In essence, the aphoristic "work to live, don't live to work" can start becoming more materialized. An increased minimum wage is beneficial to everyone.
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