vitus979 wrote:
I think that's a fair point and a reasonable articulation of the conservative position. I also think it leads to a real problem for the working class, because inevitably, you face the prospect of the free and open market determining that good paying jobs in manufacturing or whatever can be done more cheaply in other countries, or with robots, and so on.
Is there a point at which you say that free market principles shouldn't reign supreme, and at which maximizing profits should not be the overriding goal of business or the economy? Because if not, I think you don't really have any better answer to the problem than Trump's critics do.
I think there is a real and significant difference between artificially inflating low wage jobs (retail, mostly) and protecting good paying jobs in productive industries. I don't think that difference stands up in the face of totally free market forces, though.
The whole business model of most minimum/low wage jobs depends on cheap labor. They pay low wages because the labor doesn't add enough value to make the business viable if wages were higher. You can't pay hamburger flippers 20 bucks an hour and remain profitable as a fast food franchise. I think everyone acknowledges that.
You can, however, run a manufacturing plant or a coal mine and pay workers 20 bucks and hour and remain profitable. You just can't remain AS profitable as if you offshore the jobs to China.
I actually heard an NPR with a machinist in that exact position just last week. Guy is mid-forties, was making 22 bucks an hour, had worked at his company for years. Company was successful throughout that time, but is moving production to Mexico, where they're going to pay about a tenth of his wage to workers. He has no idea what he's going to do for work going forward, how he's going to pay the bills, how he's going to keep paying for his two kids who are in college.
Same free market at work. How do you deal with that?
First off, I'd like to mention that I presented a simple argument because Barry was asking specifically about 'workers rights' issues and how you account for the stances on minimum wage vs coal. It's an easy answer, hence my response to him.
That said, what you're asking is far more complex and I won't pretend I know the solution. What I will say is the cost of doing business in the US needs to compare with that of foreign nations, and play on the 'American made' idea that people will support. What I do believe is that forcing businesses to pay higher wages than the market will organically support seems a good way to force some businesses to close; others to hire fewer workers; others to move to a more business-friendly environment. I'd rather we use some taxpayer money to incentivize businesses to operate in the US and make the cost of doing that business low. All that said, I'm not sure how I feel about, essentially, capping profits. I think stats show that the vast, vast majority of businesses operate on slim margins, the owner(s) aren't taking home much more than a fair return when accounting for the risk they've undertaken. The small minority of multi-national corporations raking in huge profits is certainly a concern...I work for one of the biggest banks in the world, I totally appreciate that my banks CEO making $12MM a year is pretty absurd, I just don't know what the solution is to that and it's still a very small percentage of companies that are in that type of situation, and I happen to be very happy with my job and my compensation.
A bit rambling but that's my position.
EDIT: I just realized I didn't really answer your question :) Sorry, I"m exhausted today and need to run. But you're right: retail and fast food is different than manufacturing. Additionally, retail and fast food is different in California than it is in Arkansas...hell, it's different in Boston than it is in Pittsfield. A fed minimum wage is such a bullshit one-size-fits-all 'solution' for vastly, vastly different situations. You can quite easily survive, hell thrive, on $15 an hour all over the country, but in most cities you'd practically starve. A fed minimum wage hike doesn't nothing to promote business.