What are the alternatives to raising minimum wage?

https://www.reddit.com/r/PoliticalDiscussion/comments/3fokbf/what_are_the_alternatives_to_raising_minimum_wage/

created by The_seph_i_am on 03/08/2015 at 23:36 UTC

7 upvotes, 14 top-level comments (showing 14)

Some have seen me post this as a solution in providing an alternative to forcing a rise in minimum wage. But I'm generally curious if there are other alternatives. I'm pretty convinced corporations would never allow it to happen very quickly. I basically need money now so here's the facts as most biased as I can arrange them.

http://www.nytimes.com/aponline/2015/07/31/us/politics/ap-us-employments-costs.html?WT.mc_id=SmartBriefs-Newsletter&WT.mc_ev=click

States that current wages are at a all time slow pace.

This is bad and plutocrats are aware of it. some even know that raising the wages of their lower level employees is better for their company but can't find a reason to beyond doing something the board of dirrectors would never allow

http://www.businessinsider.com/rich-people-dont-create-jobs-2014-6

https://www.ted.com/talks/nick_hanauer_beware_fellow_plutocrats_the_pitchforks_are_coming?language=en

So since companies would likely pull every string they can to prevent a national minimum wage increase why not give them an carrot instead of a stick.

So Here's a tax loop hole that people might like that will increase pay without increasing minimum wage:

• If the majority of your employees and sub contractors are US citizens

• if you provide at least 80% of your entry level and middle tier(let's say the first five pay grades) directly employed or sub contracted employed US citizens (none of this H1B contractor crap that Disney pulled this year) with income that is higher than the start of the national poverty line.

• And then provide at least a 5% increase in wages for each step above entry level,

• publish the first five pay grades of the company to an IRS website

your company should receive a comparable decrease in taxes to profit (maybe for every dollar payed to the lower teir employees you receive a 1.20 deduction to profits taxed either imported from over seas or not). Not sure what would be the best percentage there.

This:

• increases pay, (making democrats happy)

• doesn't force companies to raise pay that can't afford it (making corporate lobbyist happy)

• gives companies a reason to hire US citizens at higher pays (conservatives should be happy about that)

• increases the spending power of consumers. (Face it the 1% can only buy so many cars)

• provides incentives to companies to make their pay scale public for the first five teirs if they are willing (ie if they want the tax credit) (liberals should be happy about that as it encourages fair pay)

• provides incentives for companies to declare more of their profits in the U.S. instead of hiding them elsewhere. (Making The IRS happy... So Dems?)

• it also rewards trickle down economics (making republicans happy)

• and all forms of government receive an increased revenue through sales, and income taxes. Because money that would be left stagnant in bank accounts gets used by lower class members finally being able to purchase "luxury items" (ie not food, utilities, rent, childcare or education)... More like new cars, family trips, and investment savings (making banks less annoyed).

The best part is this just doesn't effect the first their of pay but (in most cases) the pay grades all the way up to asst managers, where you expect pay to be different based on capability and experience.

Comments

Comment by [deleted] at 04/08/2015 at 04:46 UTC

7 upvotes, 1 direct replies

The EITC is good as mentioned before though a negative income tax may be preferable.

Though to put a different idea out there we can cut taxes that are highly incident on workers. The payroll tax falls completely on workers and corporate taxes fall highly on the.

Comment by blah_kesto at 04/08/2015 at 00:36 UTC

8 upvotes, 2 direct replies

We already have the EITC... why not just increase that as the better minimum wage alternative?

Comment by [deleted] at 03/08/2015 at 23:55 UTC

3 upvotes, 2 direct replies

Taxing people more to pay for foodstamps, government housing, etc.

Comment by [deleted] at 04/08/2015 at 05:11 UTC

2 upvotes, 0 direct replies

Enforcing immigration law to bring down the supply of cheap labor naturally raising the price.

Comment by yabbadabbadoo1 at 04/08/2015 at 05:39 UTC

2 upvotes, 1 direct replies

Enforce immigration lowers the supply of labor. Any way to cut unemployment will raise wages. One of the reasons you have such stagnant wage growth is there is no competition for workers. You could have a thousand workers quit and replace them very quickly for the same or less wage. People need jobs, the wages will come once they have to choose between two jobs.

Also allowing companies to bring profits back as long as they invest in America without tax or at a much lower rate would be great. Any investment is more jobs, or better jobs.

Raising the minimum wage just make products more expensive or raises unemployment. If you raise the entry level job wage then you have to raise the supervisors, then the managers, then the directors, ect.

Comment by [deleted] at 04/08/2015 at 05:44 UTC

2 upvotes, 0 direct replies

A larger earned income tax credit.

Comment by beer_30 at 04/08/2015 at 01:26 UTC

2 upvotes, 2 direct replies

Start enforcing antitrust laws. We went hog wild on mergers and acquisitions and look where it got us. Income inequality is at an all time high because so many small and medium businesses got swallowed up. More jobs needed to be filled = higher wages and no need for having a minimum wage.

Comment by DarthRedimo at 03/08/2015 at 23:44 UTC

6 upvotes, 4 direct replies

Basic Income is way better than minimum wage. It was successfully implemented during an experiment in Canada. People would still want jobs that gave them advancement opportunities.

Comment by [deleted] at 04/08/2015 at 00:10 UTC*

4 upvotes, 1 direct replies

Strong unions organised within a democratic corporatist structure.

America like the UK, Australia and Canada has pluralist interest group representation. There is no formal lobbying structure so in the end whoever has a narrow interest and wealthy backers have more influence and negotiations are irregular and there is little incentive to cooperative or capitulate to opponents.

In corporatist structures unions are organised into peak organisations representing entire industries. These organisations are incorporated into policy development and company boards.

In authoritarian forms of this structure these peak organisations are used to control the working and owner class and this is a common form of fascism.

In democratic forms of this structure the interests of the owner and working class are more aligned, and negotiations are constant meaning there is less class conflict or disruptive industrial political actions and better outcomes for both worker and owner without require laws to specify what those outcomes are.

This structure is seen in smaller European states and is why Scandinavian countries (used to) get by without minimum wage laws. It developed in the late 19th century and early 20th century. The best book I've read on it is *Liberalism, fascism or social democracy* by Luebbert

Comment by DevonWeeks at 04/08/2015 at 08:53 UTC

1 upvotes, 0 direct replies

NIT, as a few have said, with a total removal of the minimum wage. Set the rate and threshold to be such that it empowers the laborer to simply walk away from a job if the pay is not good enough. You empower the worker without the need for unions. You've effectively leveled the playing field in negotiating compensation. If McDonald's tells you they'll pay $5 an hour, you can tell them to screw off. If your boss is demanding more work from than you than you think your pay is worth, you can simply walk off the job. Compensation must become competitive and must attract quality workers and entice them to stay. That's as much a selling point to that system as the basic income element is.

Comment by [deleted] at 04/08/2015 at 00:04 UTC

1 upvotes, 2 direct replies

Eliminating minimum wage is a pretty good alternative. It comes with the added benefits of creating jobs and increasing American spending power.

Comment by [deleted] at 04/08/2015 at 09:15 UTC

0 upvotes, 0 direct replies

Reallocating some of the so-called "defense" money into our health care system or public works that creates more jobs and in general just a better economy.

Comment by CuilRunnings at 04/08/2015 at 15:04 UTC

0 upvotes, 1 direct replies

People in general choosing to better plan their families for when they are emotionally and financially stable.

Comment by [deleted] at 04/08/2015 at 06:09 UTC

0 upvotes, 0 direct replies

Negative income tax combined with a removal of the minimum wage or a larger eitc