HomeNews & PoliticsRelated VideosMore From: Vox

What the US gets wrong about minimum wage

30582 ratings | 824917 views
Raising the minimum wage doesn’t have to be so hard. Become a Video Lab member! http://bit.ly/video-lab The American federal minimum wage hasn’t gone up in a decade. That’s the longest wait since the US first set a minimum wage in 1938. Today, Congress is debating whether they should raise it again. But the fact that Congress has to debate it at all is… kind of weird. In the US, unlike in other developed countries, the minimum wage is a political issue. That means it gets raised irregularly and unpredictably. And that causes a bunch of problems for American workers and businesses. But it doesn’t have to be that way. Read more about the current debate to raise the minimum wage from Alexia: https://www.vox.com/2019/7/18/20697509/minimum-wage-bill-raise-the-wage-act And more about what other countries do, from the OECD: http://www.oecd.org/employment/emp/Minimum%20wages.pdf Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out http://www.vox.com. Watch our full video catalog: http://goo.gl/IZONyE Follow Vox on Facebook: http://goo.gl/U2g06o Or Twitter: http://goo.gl/XFrZ5H
Category: News & Politics
Get embed code!
Text Comments (4441)
ianericson (7 hours ago)
the minimum wage should be tied to inflation, but whether that rate should go up is a completely different debate. all of those compared countries' lines trend upward in spite of inflation, not in accounting for it. that's effectively arguing the minimum wage worker should make vastly more in today's dollars as time goes on.
Chad Bradley (13 hours ago)
Vox reporters have either not taken an economics class or don't remember what it taught them...nor bothered to interview actual economists for stories involving economics. If you are going to show a graph adjusted for inflation, then how - pray tell - would a line showing increases in the minimum wage ADJUSTED FOR INFLATION be a good thing? Raising the minimum wage is also a CREATOR of inflation (among many things including the Fed itself), so why would you want the rate to outpace inflation? Outpacing inflation IS political - which would defeat your own arguments in this video. Also, it would just increase inflation at a faster rate.
Red Sox 9904 (6 hours ago)
Chad Bradley Vox’s editing is really good so they can hide the fact that they don’t actually know anything, they just have massive egos.
Joshua Salem (19 hours ago)
4:30 “It’s such a logical idea, it’s done in many other countries” Yep. Universal healthcare, government sponsored college, gun background checks and tests, and drinking age 18 are all there too
Gs Xr (1 hour ago)
Joshua You want to make a highrer income? We are paid based on the amount of value we bring to the job market. Some people are more valuable than others if you want more money then do whatever it takes to learn whatever skills you need to become more valuable. If you live in America then you live in a 1st world country, and have every resource available to you to learn any new skill you can even do it from home with online courses. You have all the infrastructure you need all the opportunity you need you have every reason to be successful. You can literally choose how successful you want to be and aspire to it though hard work. If you are working for minimum wage it's because you choose to do so and zero sympathy for you.
Red Sox 9904 (6 hours ago)
Joshua Salem First of all America already has universal background checks, people who say the US doesn’t don’t actually understand the issue and watch too much Vox. But if you want all those things then... Then enjoy paying 20% higher taxes, and motor vehicle fatalities between the ages of 18-21 increase by 7% at least.
Joshua Salem (19 hours ago)
When the minimum wage began it was enough money for just the father to supply the whole family with since he was usually the only one with a job in the house Now the minimum wage can only supply half a person
Joe Nussrallah (1 day ago)
Minimum wage isn’t made to live off of, this shouldn’t be a problem
Matilda C (1 day ago)
America is an outlier in so many areas compared to other developed nations. It’s almost like the quest for unbridled capitalism and ‘freedom’ is destroying the country
Gs Xr (1 hour ago)
What about the freedom that America's free markets provides us where we are free to work as hard we want and can literally choose how successful we want to be and aspire to it though hard work. In America we live in a 1st world country, and have every resource available to us to learn any new skill we can even do it from home with online courses. We have all the infrastructure we need all the opportunity we need we have every reason to be successful.
Red Sox 9904 (6 hours ago)
Matilda C When you actually look at quality of life statistics it’s either at the top or near the top of almost every category. The ends matter, not the means.
Brendan Droesch (2 days ago)
Most minimum wage jobs are not meant to be lived off of, that's why it's so low
gredangeo (2 days ago)
US gets a lot of things wrong. A lot. It's unsettling and sad.
Joshua Spagnoletti (3 days ago)
Minimum Wage where I live (South Africa) is $1.36. $7.25 sounds like a dream to the majority of people here...
Galinn Arts (2 days ago)
Joshua Spagnoletti yes I’m form South Africa too hi there XD
John long (3 days ago)
How many people really actually make minimum-wage come on people
Kyle Weir (4 days ago)
The US is such a beautiful country with so much potential. It’s a real shame that there’s so much that’s utterly backwards about it.
Gs Xr (1 hour ago)
What's backwards about a freemarket paying people wages based on how much value they bring to the job market? What's backwards about people having the freedom to work as hard they want to learn the skills they need to become more valuable to employers? What's backwards about people being able to literally choose whatever income they wish and aspire to it through hard work?
Red Sox 9904 (6 hours ago)
Kyle Weir People act like it’s so far behind other nations when it literally is at or near the top of any list of of government or civilian economics.
calvin perrier (4 days ago)
I have to laugh America is always backwards asf
Gs Xr (1 hour ago)
What's backwards about a freemarket paying people wages based on how much value they bring to the job market? What's backwards about people having the freedom to work as hard they want to learn the skills they need to become more valuable to employers? What's backwards about people being able to literally choose whatever income they wish and aspire to it through hard work?
Joel Runyan (4 days ago)
its intentional
Casual Ninja (5 days ago)
Minimum wages are for non skilled workers, the reason turnover is so high is because people in these jobs can be easily replaced and trained over a short period of time. The US has a large population with few actual skills since most schools don’t have jobs programs for high schoolers due to our fear of letting our children do anything. There’s a simple solution and it’s called an apprenticeship program, where for people who don’t want to go to a university can apprentice themselves on a skilled labor job like in construction, or an electrician or a plumber. All these jobs pay well and offer Beni fits for their employees. I’m sure there are plenty of businesses that would jump at the opportunity to train our youth in these jobs, and if not there is always the incentive of tax write offs for volunteers. Instead of putting pressure on small businesses to force them to pay their employees more, if there were less people in the unskilled pool then these businesses that pay minimum wage would need to offer more to entice people to work for them instead of taking advantage of free training programs and it would fix itself naturally or these businesses would go broke.
A (5 days ago)
this week on "things that europeans have already sorted out"
Red Sox 9904 (6 hours ago)
A It’s so figured out in Europe that thousands of people violently protest on a monthly basis in France.
gisforgary (5 days ago)
things that most of the world have already sorted out.
Rusty June (5 days ago)
All the worst wages are paid in red states, and these people keep voting for the party that will never care about their poverty issues. But at least they have their guns. How they can even afford guns is beyond my comprehension.
Gs Xr (19 hours ago)
Because they like the freedom that a free market system provides them where we are free to work as hard we want and can literally choose how successful we want to be and aspire to it though hard work. That's because we are paid based on how much value we bring to the job market and some are more valuable than others.
Donny R (5 days ago)
Every time the minimum wage goes up, the price on all products and services goes up. It will always be an out of control train running down the tracks.
gisforgary (5 days ago)
that is a lie, liar. what is wrong with you, that you lie so much?
Robert McPherson (6 days ago)
Minimum Wage is pure Racism.
Aly pixar (6 days ago)
Great video
anarcho capitalist (6 days ago)
This doesn't account for the fact that modernized industrial nations with no minimum wage have lower unemployment and higher average income....
Box Top (5 days ago)
@anarcho capitalist Most people who are against a higher minimum wage are also against unions.
anarcho capitalist (6 days ago)
We aren't against unions. We are against forcing employees to be in unions in order to be employed. Perhaps you aught to read about an ideology before criticizing one.
The (6 days ago)
Yes, because of strong unionization and social market economies. Things you probably hate as an Ancap with a toilet water ideology.
mamaluigi911 (7 days ago)
If minimum wage jobs are so bad, do something where you demand higher than minimum wage... Anyone who is motivated at all can earn more than minimum wage
Maxime Mobayen (7 days ago)
I think we need to have a $15 minimum wage, this is unreal no one can live on $11 or $12 an hour especially in todays world where goods keep going up
Maxime Mobayen (5 hours ago)
@Gs Xr I understand that, I don't need a job I am already a millionaire. I am just saying it is nice sometimes to think of the other hard working people instead of being selfish and think just about yourself
Gs Xr (9 hours ago)
@mike logan The beauty in being responsible for the results of your actions is that it empowers YOU to be in control of your life. As opposed to those who choose to depend on others out of unwillingness to do for themselves yet complain about wanting more when they aren't willing to give more in return.
mike logan (10 hours ago)
@Gs Xr We are all adults, and as such, take responsibility for our lives. Thank goodness there still some people out there like that.
Gs Xr (10 hours ago)
@mike logan Thank you. Took me a long time to learn and accept the life lesson I spoke above but once I did the changes that took place in my life where humblingly powerful. Aren't free markets great that they provide us with such freedom of choice that we can choose how hard we want to work and however successful we wish to become. We are so fortunate to live in America where great opportunity is all around us and we have everything we need to capture it.
Make (7 days ago)
Minimun wage should be removed completely.
ComplaciantTeenagers (8 days ago)
7.25 is SOOOO HIGH compared to my country
Domepeace_ltd productions (8 days ago)
Less immigrants = higher wages
Johann (8 days ago)
Isn’t capitalism great kids?
Gs Xr (19 hours ago)
Free markets = freedom. We are free to work hard want in and to bring as much value as we want to the marketplace in doing so we can literally choose how successful we become/don't become and all out of free choice.
mike logan (6 days ago)
I think so. I provide a service that you want, and you pay me for it.
KingofallCasuals (8 days ago)
Silence Vox
Sam Smith (8 days ago)
In sweden we dont have minimum wage. We have a completely different system.
Adolf Shitler (8 days ago)
Lol raise the pay of your employer and see if the editor for this video is still around.
Ashlee Knowlton (8 days ago)
50s: one person could work and support a household. 2000s: two people work and can't support a household. Government: but we raised minimum wage what's the problem? People: 7 years ago. And what about inflation? Government: .....
Ashlee Knowlton (5 hours ago)
@mike logan  okay perfect you're an employer. You are right suddenly jumping the minimum wage to $14 an hour would punish the employer and the employees. I'm guessing you're a small business owner? Not much extra funds to go around? That's the problem with not adjusting the minimum wage every year to inflation. It's sudden and jarring and ultimately hurts people on all ends of the spectrum unless you work for a large corporation who can actually afford it. Also assuming that anybody who works minimum wage is just a kid buying video games is unfair to genuine hard-working adults who are just trying to make ends meat and support their families. Or even kids who are also helping support their families. You'd be surprised how many teenagers help pay their parents bills. Not everyone has the resources to further their education. Not everyone has the skills to get a better job. It's a vicious cycle if you only work for minimum wage and it's really hard to break out. You can't blame someone for a situation that they were likely born into. This is why is the federal minimum wage needs to be raised every year. Or as an employer you could raise your employees pay $0.50 to $0.75 a year willingly. It's not much but it's enough to keep them happy without harming the employer too much. If you charge for a service or product you likely raise the price every year right? Likely adjusting to inflation? So why not pay your employees more too, also adjusted to inflation. I mean seriously imagine if you went into work tomorrow and told everybody that worked for you that you were going to raise their pay $0.50 an hour. They'll probably start being a bit more productive because they will be grateful. It's simply a healthy business model. And it's not an over-reach to have a federal minimum wage. We have the Elastic Clause for a reason. Even a strict constructionist has to acknowledge that.
Ashlee Knowlton (6 hours ago)
@Gs Xr You grew up privileged didn't you? For the record online courses are a joke. Having a degree doesn't mean you get a good job and school costs money a lot of people don't have. Go to a fast food chain and find out how many people working there have college degrees that their still paying on. It will blow your mind. You can preach First World countries and infrastructure all day long but unless you actually had to deal with the struggle you have no idea what you're talking about. My mom is a special education teacher and today one of her students came in who had recently graduated high school. Graduating was a big deal for him and the fact that he had a job at Walmart was huge for him. He was proud of his job but everyone kept saying to him "oh well you have to start somewhere." That's unfair to this kid who is trying his hardest and achieving reasonable goals. Not everyone has the resources, education or intelligence to get a 'good' job. That doesn't mean they don't deserve to make a living wage if they work hard. So I genuinely ask what is your demographic? Upper-middle-class Republican? Because personally I think I grew up privileged as f***. My dad's in the military and my mom's a school teacher. But that doesn't mean that I can't empathize with somebody who doesn't have the resources that I have. Seriously think about it.
mike logan (10 hours ago)
@Ashlee Knowlton Inflation, is a different issue as well. Punishing an employer, is not a good solution, from an employer perspective. I will be forced to fire some workers, if forced to raise wages. Many other companies, will cut hours, workers or benefits. Capitalism is a great system. I provide a service/product, and you but it. It is absolutely unselfish. Also, a minimum wage job, is kids to buy themselves video games. There are too many open positions, for anyone, who has any ambition, to work for minimum wage(which should be abolished, since it is a governmental over reach).
Gs Xr (12 hours ago)
@Ashlee Knowlton Then don't work for minimum wage no one forces anyone to do so. If you live in America then you live in a 1st world country, and have every resource available to you to learn any new skill you can even do it from home with online courses. You have all the infrastructure you need all the opportunity you need you have every reason to be successful. You can literally choose how successful you want to be and aspire to it though hard work. If you are working for minimum wage it's because you choose to do so and zero sympathy for you.
TheOneTheOnly W (8 days ago)
Raising the Min Wage will only worsen the economy as a whole, this is fact. Not surprised many are for it, higher overall wages mean more tax revenue for the government.. it's always about the money it's NEVER about the people and your blind if you think this is being done for the people. If you want to help the economy try abolishing income and property tax and raising sales tax (that way EVERYONE is paying taxes) The more money you make, the more money you have to spend, the more you buy and the more you pay in taxes.
Minh Triet Vo (8 days ago)
Raising the minimum wage will just create a surplus of labor (price floor). There are currently more job opening than unemployed workers, so the market for labor is not exactly at an equilibrium. Plus, government spending boosts GDP, so the more the government collects and spends, the better the economy.
Dhruva Shah (9 days ago)
If the minimum wage is raised to $15 an hour, employers would start buying machines instead
Dhruva Shah (6 days ago)
@Minh Triet Vo the good workers would already be paid more than the minimum wage. the bad ones would have to be laid off so that only the good workers remain. even if an increase in wages would make the bad workers more productive, they wouldnt get the chance to prove themselves as the business would have already fired them
Minh Triet Vo (7 days ago)
@Dhruva Shah Rise in wage usually correlates to rise in productivity (Chick-fil-a, In N Out,...). Low wage means the worker contributes next to nothing in human support for customers, while a higher wage makes employees more positive, customers happier,... and that worker is less likely to be replaced by a machine.
Dhruva Shah (8 days ago)
@Minh Triet Vo what i meant was that employers would rather buy more expensive machines after the rise in the minimum wage, that would have been impractical if labour costs were lower
Minh Triet Vo (8 days ago)
Employers already use machines with or without a minimum wage. Unless you suggest abolishing minimum wage altogether and that people should start working for free.. the machine argument is kinda irrelevant
Lorenzo D (9 days ago)
What if we just got rid of the minimum wage and let the people decide how little or much they’ll work for- that’s true freedom
Minh Triet Vo (6 days ago)
@mike logan The government forced the business's hand to help the worker, and the worker complains. Weird. If businesses have its way, Nike would locate all its production in China's sweatshop.
mike logan (6 days ago)
As it should be. An agreement, vs being forced.
Minh Triet Vo (8 days ago)
*slavery
juselara02 (9 days ago)
Here in Colombia the minium wage raises every year. It doesnt go up much but at least it increases steadily, and our inflation is pretty low.
hamish counsell (9 days ago)
Every time the minimum wage goes up the less likely I am going to get a job (I’m from Australia
microesfera100 (9 days ago)
the correct minimum wage is $ 0.0
mike logan (5 days ago)
@Minh Triet Vo Sweatshops are illegal. Employees have many choices, as to where they spend their time. Most, won't choose anything close to a sweatshop. If they would, it's totally on them.
Minh Triet Vo (5 days ago)
@mike logan ah, but businesses aren't people. Businesses are legally bound to put profit over morality. "Employer has the right to pay whatever they wish" that's... how sweatshop works. So do you agree with the concept of sweatshop, after all?
mike logan (5 days ago)
@Minh Triet Vo People deserve respect. By not by forcing an employer to pay a wage minimum. An employer should have the right to pay whatever they wish. Likewise, an employee has the right of refusal or acceptance.
Minh Triet Vo (5 days ago)
@mike logan and who made it illegal? Btw yes people do worked in sweatshop back then.
Bluey (9 days ago)
I'm moving to France. Bonjour Sir
Shaahazadee Khaaliq (9 days ago)
I can’t believe America is last...they do us wrong with healthcare, wages...just astounding
Face reveal (10 days ago)
15$ an hour sure itd raise inflation but not by enough to make that pointless it'd only I cease about 3% to 5% that year you could say they would fire people but they wouldn't large companies and easily pay there workers 15 or way more. Yes small companies you could say will have to fire people but you also have to rember that money will be coming out of rich business who dont spend it and going right into the peoples hand who are going to spend it on small businesses when they get there money then allowing them to pay them 15 an hour
Evin Sabberton (10 days ago)
Only raising the minimum wage is problematic. I'm in trades and my wage hasn't gone up with the minimum wage. In the last few years minimum wage has gone up $4 in canada. Itll be $15 an hour in 2020. But my wage hasn't gone up anywhere near the same amount. It's just bringing the middle class into the low class.
Bijan Jahanpanah (10 days ago)
The only thing wrong about minimum wage is that there is a minimum wage
mike logan (6 days ago)
Paid, based on the employee value. That is the only way that makes sense
Bijan Jahanpanah (7 days ago)
Minh Triet Vo Proposed minimum wages are almost always arbitrary and never based on sound economic analysis. Why $10.10 an hour and not $9.10? Why $15 an hour and not $16 an hour? This arbitrary judgment of wages is made by bureaucrats, not economists. They pump up minimum wage numbers to look appealing to voters but forget about the detriments of a higher minimum wage, such as: reduced hours and benefits, reduced job opportunities for the unskilled, and reduced profits for companies. This leads to the consumer paying higher prices for their goods, and thus reducing consumer spending, which is what leads to an economic slowdown and eventually recession.
Minh Triet Vo (8 days ago)
Why shouldn't there be one?
Beze (11 days ago)
Just a thought but I think it should be on the federal level but at the same time keep the division between states because states GDP per capita varies
Minh Triet Vo (8 days ago)
The Federal Reserve usually set inflation target, so it would be reasonable to have them set the minimum wage too.
Ray (11 days ago)
There's a reason why American's can buy McDonalds for $5
Ghandi (11 days ago)
You answered your own question in one minute. Minimum wage causes inflation because people can now afford more so companies raise their prices causing inflation. Great job vox we wrapped it up in under a minute
Joseph Geiger (10 days ago)
Or is it the cost of production gose up?
Shooter Mcgavin (11 days ago)
Don’t worry U.S, your granddaughter, VOX has it all figured out
Generic Username (12 days ago)
A universal federal minimum wage makes no sense. From an economic perspective wages below a "living wage" are a drain on the economy. It would make far more sense to set the federal minimum wage to the living wage, which would be calculated for each county based on their CPI. $15 is nothing in New England. $15 is a lot in rural regions of the US.
Minh Triet Vo (8 days ago)
The minimum wage is nowhere near the cost of living.
daedraq (12 days ago)
If working congress man would be paid only minimum wage, it would go up much quicker.
Alejandro Cabrera (12 days ago)
We need a board of economic planning.
Minh Triet Vo (8 days ago)
@Alejandro Cabrera yh
Alejandro Cabrera (8 days ago)
@Minh Triet Vo so in a nutshell the FR is in charge of public money while enterprises are based on the market.
Minh Triet Vo (8 days ago)
@Alejandro Cabrera Well yeah but they planned inflation rate, interest rate, government spending... Stuff that government could control that can affect the economy. Enterprises usually sell at the price that is most profitable. The distributor will produce at the price that makes them the most profit. When look at economy on a larger scale, ie a country, it's usually the equilibrium price that we need to control, not every company's price.
Alejandro Cabrera (8 days ago)
@Minh Triet Vo I don't think the FR tell enterprises how much to pay their workers, what and how much to produce and distribute and set prices.
Minh Triet Vo (8 days ago)
I think that's the Federal Reserve?
Dolphin7777 (12 days ago)
In Fact the US government only brought in minimum wage in an effort to reduce the jobs that black americans could get.
Nick Diy (12 days ago)
LEFT THINGS THAT ARENOT MAKE SENSE
Igor Horváth (12 days ago)
The only thing that steadily raises wages and doesn't have any unintended negative consequences is a free market.
mike logan (6 days ago)
@Minh Triet Vo It does, when you bring more value to your employer. Then he compensates you, for your growth.
Minh Triet Vo (8 days ago)
The free market would never raise wages.
Martin2035 (13 days ago)
2:30 oh cool! Vox mentioned my country! :-) Good video, tho.
Anthony (11 days ago)
Aspoň, že se nezmínili o Babišovi.
NigelDK (13 days ago)
Politicians deciding wages? Well then USA is more socialist than the rest of the western world
imnotgaybut20is20 (13 days ago)
How about blame the government from creating inflation? Money printing without nothing backing it is why Americans are not living like they did in the 50s. Inflation is the problem.
Minh Triet Vo (7 days ago)
@imnotgaybut20is20 ? Increase GDP means that unemployment goes down, since the country is producing at a high rate and need more workers. US's export is cheaper because the dollar worth less, so other currency worth more and can buy more of the US's stuff. This means our export increases, so our GDP increases.
imnotgaybut20is20 (8 days ago)
Minh Triet Vo it also makes Americans poorer.
Minh Triet Vo (8 days ago)
@imnotgaybut20is20 Increase the supply of the dollars decreased its value, which make US exports cheaper and therefore increased US's GDP (short-run)
imnotgaybut20is20 (11 days ago)
Anthony because the US dollar is the world reserve currency
Anthony (11 days ago)
Inflation is present everywhere in the world, not just USA.
Dark Guardian (14 days ago)
Raising minimum wage without rent control is a hamster wheel. Gives landlords permission to raise rent... Started working at $3.35 - $3.55 for 5 years...
Minh Triet Vo (8 days ago)
New York has rent control I think.
Nelson Swanberg (14 days ago)
Tie the minimum wage to rises inexecutive compensation.
Shay Lempert (14 days ago)
Great video! You slowly start to go back to the old vox.
Frank Son (14 days ago)
No one seems to understand that people paid minimum wage will always be the poorest people. You are literally making the lowest legal wage possible. We could lower minimum wage and everything will get cheaper so that the new wage is equal to the $7.25/hr now.
Minh Triet Vo (8 days ago)
Lower the minimum wage will most likely decrease productivity as well.
Evil Otto (12 days ago)
Lowering minimum wage doesn't make everything cheaper. No more than having the same minimum wage for the last ten years has kept everything the same price. The US Dollar devalues at a rate of around 2% per year by design (most currency does). It's "targeted inflation" and thought to be necessary to a vital economy- to promote spending, to dissuade savings. It seemed weird and counterintuitive to me. But then it kind of made sense. Worth finding a video of or reading an article about.
Roystan Tan (14 days ago)
There's no minimum wage in Singapore.
2287rna (15 days ago)
Why would anyone work for less than they can live on?!?!?! Hahahahaha It's your labor, your commodity, if you want it to be worth more do something of more value We should just get rid of the minimum wage
mike logan (6 days ago)
@Anthony In the united states?! There is no reason.
mike logan (6 days ago)
@David Miller False. People are responsible adults and they choose their path.
Minh Triet Vo (8 days ago)
I'll come back to this comment when the US hit its next recession.
Anthony (11 days ago)
"Just don't be poor lol."
David Miller (12 days ago)
You are obviously a child. Even the most conservative adult knows people dont always get to pick their job or wage, especially if they are born in a poor town, or unemployment is high.
Melissa Yes (15 days ago)
why does pro business mean anti anyone else lol
Thick SunRoof (15 days ago)
what? did you see the gdp per capita? good job you are laying off millions of people just to get some views
Dark Lord (16 days ago)
This is a great video both the liberals and neocons don’t understand how minimum wage works
Steve (16 days ago)
As time goes on, I'm more and more ashamed of my country...
Steven The Plug (16 days ago)
Minimum wage is for 16 year olds living at their parents house , not a family of four . Want more money ? Gain a skill and get a better job .
Minh Triet Vo (5 days ago)
@mike logan demand of every good and service decrease when recession hit. Will some of them still be employed? Yes. Does that mean their salary and employment chance will remain the same during recession? No, it decrease because their company have less customer than before recession, therefore prone to firing more workers.
mike logan (5 days ago)
@Minh Triet Vo The will, if they want to stop a flood out stay cool when the HVAC breaks. There are recession proof jobs.
Minh Triet Vo (5 days ago)
@mike logan but people will not always pay another person to mow the lawn or fix the plumbing during the recession
mike logan (5 days ago)
@Minh Triet Vo Pipes will always need repairing, air conditioning will always need fixing, roofs will always leak, grass will always grow, etc.
Minh Triet Vo (6 days ago)
@mike logan nope. Plumbers went out of job during 2008 because people are afraid to hire them when they see housing market crashes.
Santiago S (16 days ago)
minimum wage = minimum productivity ? -> never --> causes more unemployment
mazimus2578 (17 days ago)
We aren't paying people enough to keep up with inflation Solution: Inflate more by paying people more money
Minh Triet Vo (8 days ago)
Paying people more also increased GDP and lower unemployment.
Anthony (11 days ago)
Do you have even the slightest idea of basic economics?
mike logan (17 days ago)
The price of goods/services, adjusts to the minimum wage. Let me pay my workers, their worth. Stop forcing the hand of the business owners.
mike logan (7 days ago)
@Minh Triet Vo Agreed, some will. Those that care how they are treated, will leave and find other work. If enough people respect themselves and leave, the company will go out of business. Vote with your feet and go to free school.
Minh Triet Vo (7 days ago)
@mike logan Every company is created for the sole purpose of profit. If they can jack up prices from 30 to 750 a pill *legally* , they will. If they can pay little to nothing to their workers, they will. Is it morally wrong? Yes. Do they care? As long as it's hidden, Nike will still open up sweatshops in China.
mike logan (8 days ago)
@Minh Triet Vo False. You may be working for the wrong companies.
Minh Triet Vo (8 days ago)
Most business owners would agree their workers are worthless. That's why slavery used to be a thing.
Min Yoongs (17 days ago)
I believe New York raises minimum wage ever year as well cause 3 ish years ago it was $9 something and now it's $11.10
Jeevus Chrust (17 days ago)
I hate this narrative that bumping the minimum wage will fix anything. It won't. All that will happen is the cost of goods will go up in response. I live in a place where the minimum wage, within the past 10 or so years, has gone up twice. A chicken used to be around 5 dollars, it's now 12. A 2L jug of milk used to be 2.45. It's now 5 dollars. People will say it's inflation. It isn't. Inflation wouldn't double the price of some goods and not others. It's because of minimum wage going up. I get that people need more money, and they do. But unless the government can ensure that price hikes like that won't happen it won't fix anything. It'll be nothing more than a band-aid on a gunshot wound.
Minh Triet Vo (5 days ago)
@mike logan so... No regulation on pharmaceutical company? Let them charge the old and sick to death because "they agree to buy it"? Let monopoly formed and watch as they jack up the price since there's no competitor left, and say "it's consumer's choice"? Seems like you are under the impression that businesses do charity every Sunday. Fun fact: they don't.
mike logan (5 days ago)
@Minh Triet Vo Ultimately, it all about a choice. Agree to a certain wage, and work hard to earn more money. Or, go to school, often for free, to eventually earn more money. I will never be in favor of government mandates in my business.
Minh Triet Vo (5 days ago)
@mike logan but you do agree that higher wage led to better customer service? What's the difference between choice wage and minimum wage? Money is money at the end of the day. The fact that minimum wage never adjusted for inflation means that minimum wage workers nationwide are earning less and less due to inflation. How are they gonna spend and boost GDP if they can't even feed their family? Then recession hit because people aren't buying, and everyone lost. Why go through all the fuss just to refuse to pay poor people enough money to feed their children? "The good businesses succeed, while the bad one failed" may I remind you that McDonald is the biggest fast food chain in the nation? Chick-fil-A and in n out is not even in the top 10. Businesses make decent money from paying people minimum wage, but in turn they provide bad customer services for you. So which one is it? Raise minimum wage and interact with people who aren't 24/7 concerned with money or refuse to pay them and get rushed meal? Btw chick file a barely pay above minimum wage (around 8/hr) and get amazing customer service. Just saying.
mike logan (5 days ago)
@Minh Triet Vo I prefer chick fil a, for that reason, partially. However, the employer raised wages, by choice. They are successful for that. Their employees deserve respectable wages, but not by force. An employer/employee wage agreement works best. The good businesses succeed, while the bad ones fail.
Ultimo Destruct-O (18 days ago)
*Countries With The Highest Minimum Hourly Wages In The World, 2019* Interestingly, Australia, Luxembourg, New Zealand, France, and the Netherlands offer the highest minimum hourly wages in the world, according to data from Germany’s Wirtschafts-und Sozialwissenschaftliches Institut (WSI). Where should workers move to in order to earn the best minimum hourly wage? The answer is Australia. The hourly minimum wage in Australia is US$14.14, Luxembourg at US$13.14 per hour, New Zealand at US$11.28 per hour, France at US$11.24 per hour, while the Netherlands offers US$11.01. The hourly rate in the United States yields the equivalent of US$6.63 of purchasing power, according to the report, almost four times that of Russia’s, which is worth only $1.87 in purchasing power terms. What is Purchasing power standard (PPS)? Purchasing power standard (PPS) is an artificial common reference currency unit used in the European Union which eliminates the differences of price levels between countries. Theoretically, one PPS can buy the same amount of goods and services in each country. The aggregates expressed in PPS are calculated by dividing the aggregates expressed in current prices and in national currency by the Purchasing Power Parities (PPP).
1xchlan (18 days ago)
7.25$?? my minimum wage is 11.50$ where i live
Will Faes (18 days ago)
Minimum wage hurts beginners
William Mulvihill (18 days ago)
I used to live comfortably with my full-time job until California decided to raise the minimum 2 years in a row. Even though I was making more then the minimum . In 6 months My hours went from fulltime 9-5 m-f to 11 whole hours a week. So now I work two part time jobs, I work every day of the week and only get to see my family 12-5am and im still making less then I did a year ago . .. so thanks for that guys
Anthony (11 days ago)
Just stop being poor lol
Jimmy McKinney (18 days ago)
Better than minimum wage would be a universal basic income which would increase the quality of life for all people including those who cannot be employed and those who are starting their own businesses. A minimum wage only helps someone working for someone else, whereas UBI can help all people regardless of status, career path, or ability to work.
Minh Triet Vo (8 days ago)
tru
jon meyerpeter (19 days ago)
politicians and officials? what's the difference? there all elected officials
NadChel1 (19 days ago)
Vox, I like you, but don't talk nonsense. There are many countries which have no minimum wage and high incomes at the same time: Denmark, Norway, Switzerland, Singapore
Anthony (11 days ago)
Let me guess, you don't live in any of the countries you've mentioned.
Correction Guy (17 days ago)
they operate differently with wages decided by unions.
dymforreal (19 days ago)
What this video doesn't account for is state minimum wages. The reason the minimum wage in the US is so low on a federal level is because they allow the states to make their own minimum wages. In Texas the minimum wage is around $10 but in somewhere like California it's $15. The federal minimum wage only effects how low each state can make their minimum wage. So for me I live in Oregon, here we actually have two minimum wages, one for the greater Portland area which is I believe $12.75 and the rest of Oregon which is $11.25. In my opinion I believe states should implement a minimum wage per county because someone living in LA needs more money to live compared to someone living in northern California in a small town.
dymforreal (19 days ago)
What this also doesn't account for is the cost of living and what raising the minimum wage means for prices. It addresses the concept sort of but it doesn't dive into detail. Living in other countries is far cheaper, with the United States being the most costly country to live in compared to the rest of the world. This reason alone is one of the reasons why our minimum wage system is far different from the rest of the world.
I Mig I (19 days ago)
When the minimum wage raises, companies have to pay employees more, and charge more for their products. It doesn’t help anythinf
Minh Triet Vo (8 days ago)
Increase in wage increases productivity. Case in point, Chick-fil-a, In N Out,...
Agatha Myra (16 days ago)
i think the problem is the inflation and the minimum wage doesnt match up. inflation raise way too high, and the minimum wage is too low to do anything in inflation. they should've adjust the minimum wage to match inflation, not to race inflation.
Jose Flores (19 days ago)
Being in California, a $7.25 wage seems so absurdly low. Like I literally get paid double that (as a student in my college)
David Reece (5 days ago)
@Box Top I do agree with you as well. Minimum wage is broken everywhere. It simply doesn't work. Whether it's inflation adjusted or not, the formula is broken and needs work.
Jose Flores (5 days ago)
@David Reece luckily for me, i live at home with parents so I'm saving money there but you're not wrong with how most of other stuff also costs more.... but I'm wondering with like electronics that generally have a fixed price throughout the country, would minimum wage workers have to work more or does cost of living kinda even it out Edit: maybe Box Tops reply kinda answers that as no, it doesn't even it out
Box Top (5 days ago)
In the south where people are paid 7.25 per hour or a little more it still doesn't cover much.
David Reece (15 days ago)
Well you HAVE to be paid double since everything costs twice as much there than most places in the US. I pay $2.10/gallon today for gas, but you are paying around $3.63. California has the highest gas prices (just using gas as a universal example) in the continental 48 states! So yes, $7.25 is absurdly low...if you live in CA! California also has the highest debt of all the 50 states...over $150 BILLION. The minimum wage does not work in states like California or New York where the cost of living is so high.
Baljit Atwal (19 days ago)
What about Canada
Dash Perú (19 days ago)
In the Netherlands the minimum wage automatically gets raised every 6 months.
kil296ler (19 days ago)
Yeah it sounds good to raise the minimum wage but a minimum wage job isn’t a career that’s why we go to college to get degrees so we aren’t stuck at star bucks or stop and shop those aren’t careers and if you do raise the minimum wage the cost of living will go up with it so then you guys say “we need to raise the minimum wage again” and then cost of living goes up again so it just becomes this never ending cycle of I want more with out going to school but that’s not how to world works I’m sorry
kil296ler (7 days ago)
I would love to keep this conversation going but I’m not feeling up to it sorry about not reading my comments before posting it
Minh Triet Vo (7 days ago)
@kil296ler ? Are you talking about taxing the rich? If so, then yes. But, infrastructure, subsidy and a growing economy created by the government provided massive help to local and big business nationwide. Let's see how well Macy's do in a third world country.
kil296ler (7 days ago)
Demanding more money because just because the company got bigger is not a fair reason to demand money. Unless you are a bigger part of the company you shouldn’t demand for more
Minh Triet Vo (7 days ago)
Btw I think I'm a little bit vague. Invest in stock market, *in economic terms, not in some hedge fund definition* , is saving, because it does not boost GDP. If everyone in America stop investing and put their money in the bank tomorrow, there's no change in GDP. Business will continue to operate like normal, although they will have less funding. But only business's construction and spending count toward GDP. It's complicated, I know.
Minh Triet Vo (7 days ago)
@kil296ler College used to be free. Also, some Democrats proposed to tax the rich. Not business, not the middle class. Is that really a bad thing? The rich don't spend, so they don't boost GDP. They don't invest (investing in stock market is saving, and unless you're expanding your business, you're not investing and therefore, not boosting any GDP), and they hoard their money. Is inflation bad? Price increase, so what? We tell our employers to pay us more because the company now make more. 1929 a bread cost like a cent, now it cost 3 dollars. But nobody is starving.
noah (20 days ago)
Its not the governments fault. The federal Gov should mind it's own business. Democrats always think they know best. Each state should be able to decide.
Minh Triet Vo (8 days ago)
The Federal Reserve usually decided inflation rates, so it makes sense to go with them when changing minimum wage.
Jooj (20 days ago)
this video gets so many things wrong about the concept of minimum wage that it is insulting how many people are agreeing with this
creativ-LI (20 days ago)
i’m making quite a bit above California’s minimum wage but i can’t afford to move out because of how high housing costs are, even at full time 😞
Wulframm Rolf (15 days ago)
@creativ-LI the idea is to have enough public housing at lower than market price to steal the demand for housing in the area, lowering prices as landlords fight for tenants. if that's not happening, then there's probably not enough public housing at a low enough price to have an affect on the demand for housing in the area. there are options to fixing them, but until people decide to go for solutions nothing will happen.
creativ-LI (15 days ago)
@Wulframm Rolf theres plenty of public housing, apartments are abundant where im from (if that's what you mean by that), its just impossible to afford without roommates as monthly rent rivals what it costs to have a mortgage for a home.
Wulframm Rolf (17 days ago)
push for more public housing.
paul Z (20 days ago)
If you start paying your slaves too much they will eventually earn their freedom..
Advocacy For Liberty (20 days ago)
The bit that most people don't understand is that minimum wage laws are laws that prohibit workers from working for less than a set amount. In effect it makes certain types of work illegal. The part this video doesn't tell is that if there had been a $1.00 minimum wage law in the early 1900s then there wouldn't have been any jobs for those immigrants or significantly less. The assumption minimum wage advocates make is that companies would pay the higher wage. They won't and you can't force them. They won't do anything that doesn't make them a profit to their liking. They will close the doors long before paying a wage that makes their operation unprofitable. If anything the federal government should remove the minimum wage and pass a national right-to-work law that prohibits states from setting a minimum wage. The free market is the only way to establish fair wages.
Minh Triet Vo (4 days ago)
@Advocacy For Liberty Monopolies *hate* government regulation. 1890 Sherman antitrust outlawed unfair practices that harm the free market, effectively destroyed Rockerfeller's empire. Minimum law do not affect big corporation more or less than small corporation. There are virtual monopolies in sector that pay 100k+ (Google), there are monopolies in sector that pay minimum wage (Amazon). Similarly, there are startup in both blue collar and white collar sector.
Advocacy For Liberty (4 days ago)
@Minh Triet Vo No it doesn't because the regulations are used as a tool by the monopolies. Minimum wage laws do not hurt big corporations. They do wipe out competition from small businesses and sole proprietors. What you think is protecting is actually helping the people you loathe. You couldn't be more wrong. The assumption you make is that corporations or even small corporations will pay the higher wage, they won't The work simply will be shifted to others or it won't be done at all. There is nothing that destroys economic opportunity like oppressive government regulations.
Minh Triet Vo (8 days ago)
Actually, minimum wage prohibits an employer from hiring people below a certain threshold. And if they violate it, we arrest them. The free market works well when there's a fair amount of regulation. Without regulation, we usually see monopoly determining their own prices, and that kinda f everyone up (Rockerfeller, Carnegie, pharmaceutical industry,...)
Anna Ou (20 days ago)
Or employers could just... pay their employees a living wage because it‘s the humane thing to do
Anna Ou (19 days ago)
Joseph Geiger not sure but it would depend on the cost of living in the area. Adjust for inflation since 2009 and then increase further for more expensive areas.
Joseph Geiger (20 days ago)
What is a living wage?
420 Dab (20 days ago)
Minimum wage is 13$ in California
Caleb Ma (20 days ago)
Are we going to ignore the fact that when the minimum wage is raised, unemployment increases as well? Tell the full story. The answer is not so simple and there's an inevitable trade-off. Educate people on both sides, don't just brainwash people with one side.
No Way (20 days ago)
In the US, shouldn't it be tied somehow to cost of living or some other local metric due to the massive disparity in how much it costs to live in, say, rural Alabama vs. San Francisco? It sounds complicated to have a different minimum wage by something like Zip Code, but implementing those kinds of things aren't hard anymore. Everything financial is done by a computer.
Derek Carl (20 days ago)
Minimum wage in Massachusetts is $12.50 an hour
TJRO 1121 (20 days ago)
a lot of things should be taken out of politician hands
Diogones of Sinope (20 days ago)
A lot of things should be taken out of capitalists hands. Why punish the corrupt when you can punish the corrupters?
TheWalkingBritt (21 days ago)
The U.S could adopt a lot of things that already work on other countries.
Geo M (21 days ago)
Minimum wage should be lowered that way my $16 an hour actually has value. Here in California $16 ain't nothing. When i was making $16 in Nevada my money lasted. Rent in cali $1200-$2000. Rent in Nevada $500-$1500
Georgie sama (21 days ago)
Rent here in nevada is slowly going up because californians keep moving here. Please stay there..
Beatbyclay _ (21 days ago)
America does a lot of things that don’t work just to be different from the rest of the world and it never makes sense to me 😂 Healthcare, minimum wage, college etc.
Juan Trevizo (20 days ago)
How does college not work?
Flyin Yoku (21 days ago)
The minimum wage isn't supposed to be a living wage, it's supposed to be what people make at fast food joints. Not an amount of money a 30 year old would want/need to be making. To raise the minimum wage is to restrict companies to the point where teens and adults can't get jobs. Who is anyone to tell me what my labor is worth? And I'll probably end up losing 30% of it to the same people anyway.
Cortana X (21 days ago)
Take the decisions out of the hands of government officials you elect, and place them in the hands in government officials you don't elect
Arsinyx (21 days ago)
All of Americans evil secrets are coming out