tag:blogger.com,1999:blog-6685155377705481833.post2321256003988411237..comments2023-09-22T03:17:50.469-04:00Comments on Middle Class Political Economist: Piketty on the minimum wageKenneth Thomashttp://www.blogger.com/profile/05747704671007690674noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6685155377705481833.post-46899037874230037582014-07-24T10:37:44.862-04:002014-07-24T10:37:44.862-04:00The appropriate minimum wage level is bracketed by...The appropriate minimum wage level is bracketed by two values: First is the per capita GDP, which is the average value of goods and services produced per person in the country. For the US this was $53,143 in 2013. This is the upper bound of the minimum wage as setting a value higher than this is mathematically impossible. For a 2000hr/yr work year, this would come to $26.57/hr. While this is of theoretical interest, it is not of practical interest as the minimum wage is no where near this value. The lower bound is of more interest because that is what the minimum wage is concerned with. Which goes to the question of: what is the purpose of the minimum wage? If it is to allow a standard of living for a full time job that keeps people out of poverty then that should be the lower limit. For a family of four the poverty income level was $23,550 in 2013. Interestingly this is just less than half the per capita GDP, so we're talking about a fairly narrow range here. If someone worked the supposed 2000hrs to earn this much that would be $11.78/hr. So, I would suggest that this is a reasonable value for the minimum wage.<br /><br />http://http://canonicalthoughts.blogspot.com/David W. Vielhttps://www.blogger.com/profile/16559249540276639324noreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-50324573292420095832014-07-18T08:59:45.977-04:002014-07-18T08:59:45.977-04:00I find it odd that the expansionary effects of rai...I find it odd that the expansionary effects of raising the MW are so under-stressed. Adding liquidity to an under-consuming market will only increase employment (and demand), even after some job shifting is accounted for. Not raising the MW would seem to be economic malpractice in the present circumstances.Anonymoushttps://www.blogger.com/profile/10790574845701761554noreply@blogger.comtag:blogger.com,1999:blog-6685155377705481833.post-65176943243263081712014-07-18T00:05:12.797-04:002014-07-18T00:05:12.797-04:00First, the study does not look at growth before th...First, the study does not look at growth before the minimum wage went into effect. Did growth increase after the minimum wage increase, or decline, but continue to be better than average.<br /><br />Second, if you actually plot growth vs. the increase in the minimum wage, there is a slight uptick with small increases, and then grown declines considerably with large increases -- completely crashing in the State with the largest increase, New Jersey.jackhttp://novatownhall.comnoreply@blogger.com