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Ontario raising minimum wage to $15

Ontario is bumping up its minimum wage to $15 (Canadian) per hour. It is doing it rapidly, from $11 over the next couple of years. It has also planned many other mandatory benefits for employees, from increased vacation time to mandatory equal pay for seasonal and temporary workers.

We are likely to wind up where our premier says we will: With all Ontario workers earning a decent wage, and with more mandatory vacation time and other perks. Great news for them. What she isn't saying is that a lot of businesses won't survive this sudden increase, a lot of low end workers will be laid off, and a lot of those making just over $15 per hour will find the prices of everything going up so employers can pay wages. Automation will also be encouraged further (though it will happen anyway). You can't find a McDonald's here anymore that doesn't have more than one cashier alongside rows of automated cashiers, and Tim Horton's has said they will be following suit.

So my question to my premier, if I had her attention, would be: What will the government do to support those who are laid off and otherwise adversely damaged by this? She has no planned tax hike on the rich or on Bay Street speculation as Bernie Sanders always talks about. She has no planned tax cut for the low wage earners. She appears to be shifting a social problem (cost of living) onto employers and motivating employers to pull out, leaving the problem actually unaddressed.

And also, what will she do to keep manufacturer's in the province? Ontario used to be a have province and became a have-not province under here predecessor (from the same party). Alberta (a have province) has increased its minimum wage to $15, and can afford to because of the oil industry. Alberta industry was able to absorb the hike in minimum wage for that reason. How is Ontario supposed to do it?

I see this driving the gap between rich and poor faster, and bumping up unemployment, and I would like to see the Liberal Party, or maybe the NDP putting a plan out on how to deal with that. I am myself for Universal Basic Income instead of minimum wage, but I don't see anybody politician proposing it.

The minimum wage yet again. We should have a permanent minimum wage thread where arguments for and against are numbered so that we could just say things like "I counter your argument For#23 with argument Against#18."

In the unlikely event that someone comes up with a new argument either for or against it would be enumerated and hashed out in the minimum wage permanent thread.

And no, I am not volunteering.
 
I don't know who "the left" is in this discussion, but I've been pretty clear on the fact that we're comparing "low paying jobs" to "VERY low paying jobs" with the former being the jobs that exist with the minimum wage and the latter being the jobs WITHOUT a minimum wage. We are also comparing "low paying jobs" to "not-as-low" paying jobs in the context of a minimum wage increase.

Your counter-argument can be summarized as "If you raise the minimum wage, then everyone who currently earns a minimum wage will be fired." There are all kinds of logical flaws in that argument, which collectively are the whole center of this discussion.

Economics says when the price of something goes up, the quantity demanded of it goes down. It does not say it goes to zero.

Like LP, you have that backwards. Demand is an abstraction of the relationship between supply and cost and is not an independent quantity in and of itself. Demand can and does fluctuate for reasons that have nothing to do with price, not least of which is the quality of the product and prevailing market conditions.

So when the supply of labor (quantity available) goes down, THAT causes the price to go up. The amount of change in the price between any two levels of availability depends on "demand."
For a product with very little demand, a sudden shortage in the supply will not affect its price very much. For a product in high demand, a shortage will cause a large price jump.



None of which is relevant for the labor market, because the supply of labor is and HAS ALWAYS BEEN far greater than the demand. No matter how much work needs to be done, even in boom periods where the economy is growing insanely fast and new businesses are popping up ten at a time in every part of the country, there are always more potential workers than there are jobs for all of them. When the economy is shitty and businesses aren't expanding or starting up as often (meaning demand is low) then the high supply of labor drives prices down even faster.

The only way market forces will increase the price of labor is in the event of a labor shortage, and then only when cheaper alternatives are not introduced to the market (which is why the going rate for IT specialists remained completely flat even through the labor shortage of the mid 2000s; H1-B immigrants made up something like 60% of new hires in an industry that saw an insane amount of rapid growth during that period).

Low wages are a problem for a consumer-based economy, but low wages cannot be mitigated by market forces alone, because the only market-driven way to raise wages is to reduce the supply of labor. That means you either need to create more jobs than you have workers, or you have to remove some of the workers from the labor pool. The former is accomplished (supposedly) by tax cuts for corporations, bloc grants for small businesses, deregulation and removing taxes on capital gains to make investment more profitable; this doesn't always work very well, but we keep on trying it. Some politicians and thinkers also believe that we can reduce the labor pool by banning immigrants and deporting illegals in large numbers. This ALSO doesn't work very well and almost everyone thinks this is a terrible idea, in addition to being kind of cruel and assholy.

The second option -- removing workers from the labor pool -- is generally accomplished by starting wars and then drafting a shitload of people into the Army so that they have to go off and fight the war and therefore can't take fill jobs back home. This also doesn't work very well because the combination of immigration -- legal or otherwise -- and and the fact that people are constantly fucking keeps the labor pool large and constantly growing. So one or both of those solutions needs to be modified heavily in order to become fully feasible.

In the mean time, we have the minimum wage, which keeps the market from driving the price of labor unacceptably low.
 
I'm not disputing any of that, really. I just think that making it UNIVERSAL makes it that much harder to implement, and isn't actually necessary.

Having a means-tested opt-in program makes more sense to me because not everyone is going to need it and even the people who are technically eligible for it wouldn't necessarily apply. And as I mentioned earlier, I feel that having the bulk of the program be focused on shelter costs -- e.g. "Universal Basic Housing" -- makes more sense to me too. I'm not quite to the point that I consider "shelter" to be a basic human right, but it's so fundamental in the hierarchy of human needs AND we have so much available space in this country that we should collectively be ashamed of ourselves for allowing anyone to go homeless.

Job guarantee is a better idea.

I agree, but since I don't have the first idea how to actually DO that I didn't bring it up.
 
Job guarantee is a better idea.

I agree, but since I don't have the first idea how to actually DO that I didn't bring it up.

The question would be which government does it. China has a lot of it where basically they pay people to just sweep and pick up trash. Would people in the US be okay if jobs were just picking up trash at malls or parks?
 
Economics says when the price of something goes up, the quantity demanded of it goes down.
..assuming a fixed demand curve. By the same reasoning, QUANTITY DEMANDED must vary at the same price if the demand curve (ie demand as opposed to quantity demanded on the same demand curve shifts.

What might shift a demand curve's position on the graph? Income and the distribution of income, for starters..
 
Economics says when the price of something goes up, the quantity demanded of it goes down.
Assuming a fixed demand curve. By the same reasoning, QUANTITY DEMANDED must vary at the same price if the demand curve (ie DEMAND, not quantity demanded on the same demand curve) shifts.

What might shift a demand curve (ie DEMAND and therefore the curve's position on the graph)? Income and the distribution of income, for starters..

Hmm, there must be a reason serious economists don't make this argument.

Let's see if you can make a credible case that the demand curve for unskilled labor would shift using real world numbers. Show your work.
 
Economics says when the price of something goes up, the quantity demanded of it goes down.
..assuming a fixed demand curve. By the same reasoning, QUANTITY DEMANDED must vary at the same price if the demand curve (ie DEMAND, not quantity demanded on another demand curve) shifts.

What might shift a demand curve (ie DEMAND and therefore the curve's position on the graph)? Income and the distribution of income, for starters..
 
We agree that employers should be held responsible for harm that they do to individuals and to the community. Correct?

I think this needs some clarification.

The problem is we are defining harm to cover negative things that exist in the world where the company is acting but don't exist when it isn't acting.

The left, however, is defining it as negative things that exist in the world with the company and the employee but don't exist when neither of them exist.

Thus we compare a low pay job to no job and do not call it a harm.

They compare a low pay job to nothing at all and call it a harm.

While this is completely unsound you can't get very far disproving something if you don't know what you're disproving.

I don't understand what you are saying here. Who is "we" here and who is the "left" here? Am I on the left or right of this issue? I am advocating for UBI, which to my understanding is well on the left.
 
Assuming a fixed demand curve. By the same reasoning, QUANTITY DEMANDED must vary at the same price if the demand curve (ie DEMAND, not quantity demanded on the same demand curve) shifts.

What might shift a demand curve (ie DEMAND and therefore the curve's position on the graph)? Income and the distribution of income, for starters..

Hmm, there must be a reason serious economists don't make this argument.

Let's see if you can make a credible case that the demand curve for unskilled labor would shift using real world numbers. Show your work.

Who qualifies as a "Serious Economist" and who decides who qualifies? This is basically just an abstraction of the no true Scotsman.

Do you see how your bullshit arguments are bullshit yet?
 
Assuming a fixed demand curve. By the same reasoning, QUANTITY DEMANDED must vary at the same price if the demand curve (ie DEMAND, not quantity demanded on the same demand curve) shifts.

What might shift a demand curve (ie DEMAND and therefore the curve's position on the graph)? Income and the distribution of income, for starters..

Hmm, there must be a reason serious economists don't make this argument.
Serious economists (as well as C students in econ 101) fully understand that the law of demand (i.e. that quantity demanded is negatively related to price) is true for a stationary demand curve. Serious economists (as well as C students in econ 101) fully understand that in the real world, the assumption of a stationary demand curve is unwarranted.
 
I agree, but since I don't have the first idea how to actually DO that I didn't bring it up.

The question would be which government does it. China has a lot of it where basically they pay people to just sweep and pick up trash. Would people in the US be okay if jobs were just picking up trash at malls or parks?

The proposals I've seen suggest local Govts would administer it, while the national govt funds it.

I think there's more productive work to be done besides picking up trash. Not knocking sanitation, we could use more.

Here's a link contrasting BIG and JG:

http://neweconomicperspectives.org/...sias-wrong-job-guarantee-vs-basic-income.html
 
Hmm, there must be a reason serious economists don't make this argument.

Let's see if you can make a credible case that the demand curve for unskilled labor would shift using real world numbers. Show your work.

Who qualifies as a "Serious Economist" and who decides who qualifies? This is basically just an abstraction of the no true Scotsman.

Do you see how your bullshit arguments are bullshit yet?

You must have missed the part where I asked for a credible analysis that suggested raising the minimum wage would shift the demand curve for unskilled labor.

If you can provide one feel free.

You may wonder on your own time why that argument does not appear here.

https://en.wikipedia.org/wiki/Minimum_wage
 
You have claimed that to have UBI we will need to tax the rich at 99%
No I didn't. I said that even IF you taxed the rich at 99% you wouldn't have enough tax revenue to make it sustainable for any length of time.

Because the highest fifth quintile of Americans -- about 24 million households -- has a combined income of about $2 trillion. If you wanted to to take 99% of their income and give it to the other four quintiles, you are distributing $1.8 trillion across about 72 million households. That's $25,000 per household.

This would be great news for those in the bottom quintile, whose mean income is about $12,000 (it would double their annual income instantly without them having to do anything). It would be far less meaningful for the people in the middle, who already make twice that just from working and the extra income is basically beer money. And the people at the very top are fucked, having been taxed down to subsistence level so that everyone else int he country can be super extra comfortable.

On the other hand, Basic income doesn't need to be universal. If you just leave it at the bottom quintile -- those who under current conditions are earning less than a living wage -- then you could take just 50% of the income from those at the very top and redistribute it to those at the very bottom, which would give them a household Basic income of about $32,000. THAT would make a lot more sense, but there's still no reason for just the rich to shoulder that burden since those in the middle and second-highest bracket can also afford to chip in more.

Last of all, there's the fact that an income distribution to the bottom quintile to the tune of $30,000 per household would only cost a country like the United States about $150 billion per year. This is something that would be sustainable if we had our spending priorities straight; we could cut military spending by about 30% and transfer those revenues to the new program. OTOH, distributing that same income to all five quintiles would cost us an additional $750 billion, almost all of which would have to come off the backs of households that don't actually need that money and don't benefit from a universal basic income in the first place.

You misunderstand what I mean by UBI. The way you describe it, I agree it wouldn't work. Maybe that explains why we have been talking in circles.

I do not mean we send a government cheque to all citizens. I mean UBI as a universal tax credit. Mot of us will have that offset by our increased income tax. Only the people at the bottom will get a cheque, and it will be instead of a welfare cheque or other social support cheque (with the exception of EI for the reason Loren pointed out). By doing this you are combining most financial support programs from the government into one, saving significantly in red tape.

We place an expectation on all citizens to file a tax return every year. If they do not, then the tax people look into why they didn't. If they are earning enough that they should have paid in, they are fined and the taxes are collected. If they are not earning enough and should have gotten money back but were unable or otherwise didn't send in the return, they should be sent the money they are entitled to (mostly due to UBI but child subsidy etc can also be part of this) and also marked for any other social support they need. They may have mental illness, be homeless as a result, be illiterate, etc.

This will not require us to tax the rich at 99% or even close to that. This will cost a little more than the current system (even with the savings from cutting all that red tape) because it will reach everybody that needs it. Making it "opt-in" as you have proposed creates cracks for people to fall through. It needs to be universal and automatic to work properly.

You, on the other hand, are advocating the addition of a third form of income independent of labor or capitol gains and the codification of this income source as a basic part of our society.

Correct.

I do admire your optimism, as that is not by itself a bad idea. But it's also not a PRACTICAL idea, and it's unlikely to work at all in the absence of a minimum wage.

I remain unconvinced by this pessimism. It is merely a matter of political will. Same goes for universal single payer health care.

Why are "the rich who don't hire employees" responsible for anything at all?

Because they benefit from the society in which they operate. People have money to buy their products and services. Where does that money come from? They are able to operate without crime to the point of anarchy and with a police service to come to their aid as well. They should be responsible, just as responsible as the rich who do hire employees, to pay their fair share, and that includes subsidizing those who are unemployable or who do not have labour skills sufficient to be worth enough to cover the cost of living.

Employers of welfare recipients are NOT under any particular pressure to attract new employees. Can you explain this?

Is your welfare system simple, universal, automatic and providing sufficient funds to truly get by on? Ours here in Ontario isn't.

Ours is disjointed and complicated. We have numerous different programs here in Ontario to help people in need, but most of them require applying for, are unknown to many who would qualify for them, and only particular people qualify for each one. They vary from ODSP (Ontario Disability Support Program; provincial program exclusive to the disabled after meeting tests and supplying papers many are unable to provide) to CPP (Canada Pension Plan; federal program paying a small amount to seniors) with many other lesser known ones scattered around. Many of them only last a set period of time and many have to be continuously applied for. Few, if any, combinations of them truly provide enough to get by on without living in abject poverty. But at least our unemployed and unemployable get universal health care.
 
The question would be which government does it. China has a lot of it where basically they pay people to just sweep and pick up trash. Would people in the US be okay if jobs were just picking up trash at malls or parks?

The proposals I've seen suggest local Govts would administer it, while the national govt funds it.

I think there's more productive work to be done besides picking up trash. Not knocking sanitation, we could use more.

Here's a link contrasting BIG and JG:

http://neweconomicperspectives.org/...sias-wrong-job-guarantee-vs-basic-income.html


I think there is disagreement on how it would work. Switzerland turned basic income I believe. But with the nature of today's jobs it would be very hard to coordinate all if it for more advanced projects.
 
Hmm, there must be a reason serious economists don't make this argument.

dismal, you've never even managed to get econ 101 stuff right, never mind anything to do with "serious economists"

Some vaguely amusing alt-right stuff ..yeah.
 
Who qualifies as a "Serious Economist" and who decides who qualifies? This is basically just an abstraction of the no true Scotsman.

Do you see how your bullshit arguments are bullshit yet?

You must have missed the part where I asked for a credible analysis that suggested raising the minimum wage would shift the demand curve for unskilled labor.

If you can provide one feel free.

You may wonder on your own time why that argument does not appear here.

https://en.wikipedia.org/wiki/Minimum_wage

This isn't an answer to my question. Who qualifies as a "Serious" economist and why? I wouldn't need to ask if you didn't prompt it with your thoughtless assertions.
 
I do not mean we send a government cheque to all citizens. I mean UBI as a universal tax credit. Mot of us will have that offset by our increased income tax. Only the people at the bottom will get a cheque, and it will be instead of a welfare cheque or other social support cheque (with the exception of EI for the reason Loren pointed out). By doing this you are combining most financial support programs from the government into one, saving significantly in red tape.
I'm tempted to say it doesn't really matter HOW you implement it because the net effect of it would still be another $150 to $300 billion in outflows to the bottom quintile. Also, strictly speaking, the Federal Government already does this with the EITC, with many poor people earning a "refund" of $2,000 or more depending on the size of their household.

But with a negative taxation program, people who don't file taxes (because they have no income) would still fall through the cracks anyway. Hunting everyone down and forcing them to file taxes despite their lack of income would just be a giant pain in the ass that the IRS is not really equipped to deal with. Also, the way we actually process taxes means UBI is going to be disbursed to families in large lump sumps, which is generally NOT a good idea to begin with.

But in principle, the "how" doesn't make that much of a difference. It just doesn't need to be universal (e.g. it doesn't go to everyone) and it needs to be means tested in some way that takes those who have no income whatsoever into account. This, by the way, is why I don't think UBI is a viable alternative to raising the minimum wage. You actually need those wages to be relatively high to keep your tax revenues up or else the UBI pipeline dries up anyway. For that matter, those of you whining about how a high minimum wage will cause all those terrible workers to get fired wouldn't have to worry about it the, because even if that DID happen, they'd just go on basic anyway, right?

I remain unconvinced by this pessimism. It is merely a matter of political will. Same goes for universal single payer health care.
That's entirely true.

You DO realize we still don't have single payer healthcare down here, right? Or, for that matter, rational gun control or anything resembling it? We're the country -- in fact, the ONLY country -- in the western world that had to fight a civil war before we could successfully outlaw SLAVERY.

Say what you want about my pessimism, but as an American, I am obligated to remind you that my country is FUCKING STUPID. You really think we could switch to a universal basic income? We haven't even switched to the goddamn metric system!

Because they benefit from the society in which they operate.
Trees benefit from sunlight. That doesn't mean we have to chop down half the trees in the world to keep the sun shining.

They should be responsible, just as responsible as the rich who do hire employees, to pay their fair share, and that includes subsidizing those who are unemployable or who do not have labour skills sufficient to be worth enough to cover the cost of living.
Indeed, which is why I am not opposed to welfare spending or a publicly funded "safety net" for those who cannot gain income from labor.

What you still have yet to explain is why the idle rich and robot companies should be responsible for that problem while wage slavers and cheapskates should not. The minimum wage puts a greater burden on the people MOST DIRECTLY responsible for the problem, so why should the people DIRECTLY responsible share an equal burden with the people who have no part in it?
 
Bomb#20 said:
I.e., she should hire a different worker. I.e., you choose option two. I.e., the first worker should be stuck with a $30000 problem instead of a $10000 problem. I.e. you grabs his duds and his picks as well, and you hurls 'em down the pit of hell.
Unless you're working in outside sales or independent contracting, there are very few industries in America where the actions of a specific worker are directly associated with a specific amount of revenue. As far as I know, though, commissioned-based salespeople don't work for minimum wage anyway. It is difficult if not impossible to pin down a specific revenue trend to the actions of a specific worker. There are other means to measure performance and productivity, but you can't really monetize employees hour by hour in most cases.
I'm not clear on why you think that's a substantive argument. It's like reacting to the statistical link between cigarettes and lung cancer by saying "There are very few cases where a specific smoker's habit is directly associated with a specific tumor. You can't really show a given patient wouldn't have gotten cancer anyway even if he hadn't smoked."

What generally happens instead is, a business that suddenly has to pay its workers $20,000 more has to come up with a way to make $20,000 of additional revenue to cover the shortfall. If they've been padding their profit margins by suppressing wages, this is easy: they either raise their prices and take it off the consumers, or they accept a smaller profit margin, or they do some combination of both. Another more popular alternative is to fire their three least productive workers and then combine those workers' responsibilities onto the remaining one; this is closer to what YOU were suggesting, i.e. "the first worker is stuck with a $30,000 problem." I don't really see why anyone would object to that, since that's the equivalent of a promotion anyway and would probably be pretty good for his career.
By "the first worker" I was referring to the "Or should she not hire the guy, and get $20000 less revenue and $30000 less expense?" worker. By "a $30000 problem", I was referring to the unemployed guy having $30000 less than he needs for a decent lifestyle instead of having $10000 less than he needs. He would object to that, because he gets $0 instead of $20000. Did you read my whole exchange with CDJ, and listen to the video? It's a 19th-century English folk song celebrating violence against workers who cross picket lines. The point is that people trying to make employers pay higher wages very often take a "screw-em" attitude to the subset of the workers who won't be getting a share of the larger pool of money the employers will pay.

Meanwhile, the three fired workers are all stuck looking for new jobs, and the lowest offer they can make is $30,000, which means they ALSO end up with a promotion at whatever company ends up hiring them.
I.e., not everybody who smokes gets cancer; therefore I can smoke and I won't get cancer. Total consumption of unskilled labor goes down when you raise the price from $20000 to $30000. But because some of the workers who lose $20000 jobs end up getting now-paying-$30000 jobs, you conclude that any given worker will end up getting one of those remaining jobs. You are ignoring the overall problem that there are now fewer unskilled jobs than unskilled laborers.

The minimum wage isn't about morality, it's about the capacity of a huge number of irresponsible business practices to completely sink a country's economy.
But you haven't shown that paying a group of workers who are paid $20000 a year and who add an uncertain, hard-to-measure amount with a probability distribution that peaks at $20000 to their various employers' revenue either is irresponsible, or will completely sink a country's economy. Employers have been paying their estimated least productive employees less than you would define as "a living wage" since the beginnings of money economies, and our various countries' economies haven't completely sunk yet.
 
I think this needs some clarification.

The problem is we are defining harm to cover negative things that exist in the world where the company is acting but don't exist when it isn't acting.

The left, however, is defining it as negative things that exist in the world with the company and the employee but don't exist when neither of them exist.

Thus we compare a low pay job to no job and do not call it a harm.

They compare a low pay job to nothing at all and call it a harm.

While this is completely unsound you can't get very far disproving something if you don't know what you're disproving.
Thank you for succinctly describing the value of straw man based reply. Proponents of minimum wage argue that the benefits of the minimum wage outweigh it costs.

Thank you for succinctly showing the value of an off-topic reply.
 
Unless you're working in outside sales or independent contracting, there are very few industries in America where the actions of a specific worker are directly associated with a specific amount of revenue. As far as I know, though, commissioned-based salespeople don't work for minimum wage anyway. It is difficult if not impossible to pin down a specific revenue trend to the actions of a specific worker. There are other means to measure performance and productivity, but you can't really monetize employees hour by hour in most cases.
I'm not clear on why you think that's a substantive argument. It's like reacting to the statistical link between cigarettes and lung cancer by saying "There are very few cases where a specific smoker's habit is directly associated with a specific tumor. You can't really show a given patient wouldn't have gotten cancer anyway even if he hadn't smoked."
Yeah... that's actually TRUE. You really CAN'T show in many cases that a specific patient actually developed cancer from a single causal factor. Cancer is complicated like that.

And then there's Bomb#19 saying "Every Newport cigarette increases your risk of cancer by 0.082%, while Virginia Slims only increase your risk by 0.072%, so if you had smoked Virginia Slims instead of Newports, you wouldn't have gotten cancer until 71 months from now." That, also, isn't a valid statement to make.

By "the first worker" I was referring to the "Or should she not hire the guy, and get $20000 less revenue and $30000 less expense?" worker. By "a $30000 problem", I was referring to the unemployed guy having $30000 less than he needs for a decent lifestyle instead of having $10000 less than he needs.
I'm confused... does this employer no longer HAVE workers? Is that the point you're making?

And again, this is a flawed argument, because you're assuming the labor of a specific worker can be directly and literally quantified in terms of expenses and revenues. This is not the case for anything but commission-based sales, whose workers DO NOT pull minimum wage in the first place.

The point is that people trying to make employers pay higher wages very often take a "screw-em" attitude to the subset of the workers who won't be getting a share of the larger pool of money the employers will pay.
Actually, I've continually pointed out that "workers who won't be getting a share of the larger pool of money the employers will pay" are the same workers who wouldn't have gotten hired (or retained) no matter what their wages actually were because they are not actually qualified to do the jobs they're doing. Pay rate and compensation is not nearly as important in hiring decisions as qualifications and productivity. People get fired for being incompetent, they get fired for being insubordinate, they even get fired for being criminals and/or douchebags. I've heard of (and rejected) applicants for not being qualified, for having shitty attitudes, for being sloppy or annoying, for not understanding what the job entailed. Hell, I've rejected job applicants just for openly supporting Donald Trump. But I have never heard of an applicant getting rejected because they aren't productive enough to get paid a minimum wage. That isn't a real thing that actually happens.

Total consumption of unskilled labor goes down when you raise the price from $20000 to $30000.
It is LITERALLY impossible for you to factually make this claim. "Unskilled labor" isn't a finite commodity with a quantifiable supply you can plot on a graph. You can quantify "hours worked" on a specific task and you can even measure the number of people per hours worked. But those hours are not pre-existing: you don't just produce "labor hours" out of a gland under your armpit and then sell it to employers in little jars.

in which case, what you would ACTUALLY see -- and then only for unskilled labor at or near minimum wage level (not all such jobs are, and you know this) is a shift in the distribution of those hours. The unskilled workers simply pull fewer hours and are pressured to finish their jobs that much faster, or the skilled and unskilled workers BOTH reduce their hours or are given more unpaid leave. Or the very lowest performing worker in the unskilled labor group is fired (rising wages is as good an excuse as any) and the manager simply refrains from replacing him. Or the unskilled workers have their hours reduced and one of the skilled workers assumes some of their responsibilities. Or the skilled workers have their hours reduced and the unskilled workers are forced to step up and take on some tasks that used to require skilled workers.

You're trying to measure a condition that is inherently unquantifiable and then you start making very specific predictions as to what will happen to that condition under X circumstances. To use your own example, this is a bit like trying to calculate exactly how many cigarettes does it take to trigger the existence of a cancer cell.

But you haven't shown that paying a group of workers who are paid $20000 a year and who add an uncertain, hard-to-measure amount with a probability distribution that peaks at $20000 to their various employers' revenue either is irresponsible, or will completely sink a country's economy.
I also haven't shown that my vagina has rainbow colored pubes... is there a reason I would WANT to show either of those things?

Employers have been paying their estimated least productive employees less than you would define as "a living wage" since the beginnings of money economies
That's the thing: employers don't actually estimate the "productivity" of their employees in concrete terms like that. In fact, my experience has been that only very poor business managers would even be stupid enough to TRY.

I'm deeply confused as to why you keep implying that "productivity" is what wages are based on. It's not, and it never has been.
 
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