From Market Watch:
...If a single worker with a life expectancy of 90 were to earn the current minimum wage her whole life, and claimed Social Security benefits at her full retirement age, she would receive a monthly benefit of $924, compared with that same type of worker earning $15 an hour, who would receive $1,337, said Bill Meyer, chief executive officer of software firm Social Security Solutions.
But Social Security benefits can also be calculated cumulatively — that is, the total amount in one’s lifetime. Cumulatively, a worker claiming at 62 after having earned the current minimum wage his whole life would receive $294,000 (assuming a 2% cost-of-living adjustment), and $398,000 if he claimed at 70. But if a worker earned $15 an hour and claimed at 62, he would see $425,000 in lifetime Social Security benefits, and $576,000 if he claimed at 70. ...
15 comments:
I'd bet there are more people who have their benefits figured on them making the max for all the years in their computation vs this scenario of someone working their entire life at minimum wage.
Minimum wage jobs are starter jobs for most people and even for those that work at that same type of work for long periods, odds are they would receive some type of raise over the minimum in their lifetime.
Some type of raise maybe, but it's something like 40%+ of ALL jobs in the US that pay less than $15 an hour. That large a percentage belies your whole "starter job" nonsense folks like to say about low wage jobs.
If nearly half of all jobs are low paying then it seems apparent on its face that those jobs ain't just reserved to high school kids and folks who want a small side job or younger people just starting out.
If people can't get a job, they won't get any retirement, will they? Increasing the minimum wage to $15 will put a lot of small businesses out of business. Furthermore, anyone with common sense knows it will raise prices. Minimum wage will always provide a minimum wage lifestyle. I saw where someone who owned a pizza restaurant said that if the minimum wage is raised, that $15 pizza will cost $19. Common sense tells you that when you increase the cost to provide a good or service, the price of that good or service will also increase. Some increases in the minimum wage may be warranted from time to time to keep up with inflation, but that type of increase will cause inflation, business closures, and job loss. But, hey, according to some, it will be all rainbows and unicorns, so let's give it a shot. After all, I here Venezuala is doing pretty good these days.
@1251 PM. The minimum wage isn't $15 now except in a few locations. Wages are generally an indication of what the labor is worth. Some places are paying more than $15 now for jobs that one wouldn't think would be that high because of the local demand for labor, difficulty keeping trained labor, etc.
The number of workers making the federal minimum wage is less than 3%. I'd be guessing but I'd bet most of those are starter or high school jobs. Apparently about 90% of workers making less than $15 are earning more than the federal minimum wage. Jobs that are worth more than $15 pay more than $15. Just like the pizza mentioned above, one wouldn't pay $40 for a $15 pizza just so everyone that works at the pizza place can make more than they are worth.
Overlooked in this discussion is the effect of raising the minimum wage on the wages for those currently receiving more than the minimum wage. Just to keep it simple to understand, if you raise the minimum wage by 10%, do you raise all wages for by 10%? If not, why not? Or even simpler, if you raise minimum pay by $1, do you raise all wages by $1? If not, why not? That would not be the same percentage increase for all wage earners but at least those who have the experience and skills that justified more than minimum pay wages are not ignored or disadvantaged completely by such a change. Also ignored is the great variety of cost of living rates throughout the USA and the effect this change would have on cost of living rates. There exists a damaging cascade of problems related to establishing a national $15/hour minimum wage throughout the USA and this simplistic "solution" is no solution at all.
A business whose business plan depends on paying labor less than $15 an hour isn't a business likely to flourish. Maybe they shouldn't.
@7:13
Citation needed.
To 7:13 am - tell that to McDonalds, Taco Bell, Burger King, or just about any restaurant or other food service business. Tell that to motels and hotels, department stores, clothing stores, or many other retail businesses. Tell that to many tens of thousands of similar businesses that they are not likely to flourish unless they pay workers a minimum of $15 an hour. They are doing quite well unless you consider the problems created by government restrictions and covid shut-downs as the more likely cause of what hurts the business, don't you think? Or do you not get out much? Can't believe your own eyes?
You should also get out of your shell and recognize that the businesses in other countries do not require a $15 an hour minimum wage to flourish. One size does not fit all, or don't you believe in diversity?
12:51 said Wages are generally an indication of what the labor is worth.
Which is true enough but begs the question of how it is determined what the labor is worth. In a capitalist environment, the start point for determine wages is the ability to generate capital but for minimum wage jobs, the capital generated is impossible to calculate. How much does a dishwasher really add to the profits of the restaurant. Yes, they need that dishwasher but needing an employee says little about what his labor is worth. The reality is such wages are determined by the lowest amount the employer is allowed to pay and limited only by whether or not someone is willing to work for that amount.
Raising the minimum wage, and bear in mind that the wage would not jump up to $15.00 immediately but in all current proposals would be increased over several years, puts more money in the hands of the people who would spend it the fastest. Overall, this benefits the economy as Ford recognized when he raised wages for his assembly line workers so that they could afford to buy his cars.
I don't know where the exact number should be, and it may make sense to have a different wage in different areas of the country where wages and living costs are different as well, but I know the wage should be increased from where we are now and raising it does actually raise living standards all around to the benefit of the country as a while.
So if those businesses flourish paying less than a living wage, are we to believe that they will fail if they started to do so? Or that they will continue to flourish if they did? It's unclear what is being said. But if having to pay a living wage to their employees will cause a business to fail, well, no business is guaranteed a right to stay in business. A business plan so margin thin that paying employees $15 will kill it is a business plan likely to fail anyway. (And based on a perspective re: labor that is troubling). And if they can afford to pay better but choose not to do so seems a choice with consequences.
$15 is too much and $6000 is too little
To 7:13 am - tell that to McDonalds, Taco Bell, Burger King, or just about any restaurant or other food service business."
Horrible example. Let's take McDonald's for example. They easily are the most profitable fast food business. I would bet their revenue will not drop much during the pandemic either. They could pay their employees more if they were willing to share the wealth.
This argument that businesses will contract is bogus. The agriculture industry uses this to justify using illegal work. It just does not fly.
@4:01
Pricing is set by what the consumer will pay, not what costs go into making the product. You are arguing for the labor theory of value (i.e. marxism) which is incredibly ironic in that you appear to be criticizing Venezuela.
Wonder if those opposed have office help working under $15/hr
1:25 PM, February 16, 2021 : Thank you for also agreeing that 7:13 AM, February 15, 2021 claim that "A business whose business plan depends on paying labor less than $15 an hour isn't a business likely to flourish. Maybe they shouldn't." is false when you state "Let's take McDonald's for example. They easily are the most profitable fast food business."
You may not like that such businesses do flourish and are profitable. You may want the power to determine what is an "acceptable" profit along with the power to set all the other factors that determine profitability or loss in a business. Do you think that those who provide the goods and services now available in society will agree with your decisions and continue to at least provide the same amount and quality of goods and services? What will happen if you are wrong and who will suffer the consequences of your decisions?
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