Don’t Believe the Myths of Minimum Wage

Interview

2018 marked a minimum wage increase in Ontario which follows a trend throughout North America of raising the level minimum companies can pay workers. Large, heartless, corporations like Tim Hortons have released statements that they think paying people more is bad – they are wrong. It’s clearer than ever before: minimum wage increase have historically been good for the economy and people.

We have been raising the minimum wage for 78 years, and as a new study clearly reveals, 78 years of minimum-wage hikes have produced zero evidence of the “job-killing” consequences these headline writers want us to fear.

In a first-of-its-kind report, researchers at the National Employment Law Project pore over employment data from every federal increase since the minimum wage was first established, making “simple before-and-after comparisons of job-growth trends 12 months after each minimum-wage increase.”

What did the researchers find? The paper’s title says it all: “Raise Wages, Kill Jobs? Seven Decades of Historical Data Find No Correlation Between Minimum Wage Increases and Employment Levels.”

The results were clear. Of the nearly two dozen federal minimum-wage hikes since 1938, total year-over-year employment actually increased 68% of the time.

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Boomers Destroyed the Planet & Economy, Millennials Trying to Save Both

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For the first time in a very long time an entire generation will be worse of than their parents. The wheels are in motion for that truth to be a set reality that requires drastic change that society likely can’t handle. Still, millennials are going to try to make the world better than they found it in the hopes that the next generation will be OK.

Over at HuffPo they have a great article that outlines how we find ourselves in this position and what we can do about.

But they’re right about one thing: We’re going to need government structures that respond to the way we work now. “Portable benefits,” an idea that’s been bouncing around for years, attempts to break down the zero-sum distinction between full-time employees who get government-backed worker protections and independent contractors who get nothing. The way to solve this, when you think about it, is ridiculously simple: Attach benefits to work instead of jobs. The existing proposals vary, but the good ones are based on the same principle: For every hour you work, your boss chips in to a fund that pays out when you get sick, pregnant, old or fired. The fund follows you from job to job, and companies have to contribute to it whether you work there a day, a month or a year.

Small-scale versions of this idea have been offsetting the inherent insecurity of the gig economy since long before we called it that. Some construction workers have an “hour bank” that fills up when they’re working and provides benefits even when they’re between jobs. Hollywood actors and technical staff have health and pension plans that follow them from movie to movie. In both cases, the benefits are negotiated by unions, but they don’t have to be. Since 1962, California has offered “elective coverage” insurance that allows independent contractors to file for payouts if their kids get sick or if they get injured on the job. “The offloading of risks onto workers and families was not a natural occurrence,” says Hacker, the Yale political scientist. “It was a deliberate effort. And we can roll it back the same way.”

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WikiTribune to World: “Hello”

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In 2001 when Jimmy Wales launched Wikipedia he never thought that the website would become what it is today. This year he has launched (with many others) WikiTribune and hopes that it becomes as influential as Wikipedia is online. WikiTribune exists because of the disappointing state of news media right now (it’s worth noting the idea for the site came before Trump) and the hope is that WikiTribune can outsource news production to people like the way Wikipedia does.

This is the launch of a project to build a news service. An entirely new kind of news service in which the trusted users of the site – the community members – are treated as equal to the staff of the site. As with any true wiki, you can jump in and get involved at the highest levels, doing as much or as little as you like to help. As with any successful wiki, there will be detailed discussions and debates by the community to set policy on all the matters necessary to build a news service.

My goals are pretty easy to understand, but grand in scope (more fun that way, eh?): to build a global, multilingual, high quality, neutral news service. I want us to be in as many languages as possible as fast as possible. I want us to be more concerned with being right than being first. I want us to report objectively and factually and fairly on the news with no other agenda than this: The ultimate arbiters of the truth are the facts of reality. That’s agenda enough to keep us busy.

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Take a Moment and Really Think about Unions

2017 has been anything but a successful year for unions. For a multitude of reasons unions have a bad reputation, although it’s thanks to unions that we have labour rights and weekends. Unions are really good at helping individuals deal with institutions that want to exploit their work; and history has proven this time and time again. So why all the hate to unions? It comes from boomers and earlier generations making unions the scapegoat for problems that unions didn’t cause in the first place. Now that inequality is on the rise the trend is reversing.

Vice recently published that unions are cool again and it might have to do with the fact that millennials are facing precarious employment with low wages. Yes, unions are good to fight inequality and we in North America should rethink how we talk about groups of workers uniting against exploitation.

Union members may have a good understanding of those values and the benefits they receive through collective bargaining, but what about those who aren’t in a union?

One piece of good news for unions is the striking disconnect between generations in how they are viewed—a poll in 2015 showed that 57 percent of millennials think of unions positively, versus only 41 percent of baby boomers. Maybe that’s because memories of unions as corrupt are finally fading. Maybe young people are more open to left-wing politics. Or, it could be that, in today’s era of income stagnation and freelance gigs replacing careers with benefits, millennials recognize that they may need to band together in order to secure a piece of the economic pie.

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Fighting Myths of the 1%

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Income inequality has been growing since the 2008 self-inflicted bank chaos, indeed that banking stupidity from 2008 accelerated the growing gap. The inequity was so obvious that the Occupy Wall Street protests took the streets and the public consciousness of “the 1%” grew out of it. Sadly, politicians failed to address the root causes of the 2008 crisis. Not all hope is lost, we know what to do fight inequality – we just need to do it.

The New York Times took a look into the debate around inequality and set out to bust some myths about what works and what doesn’t.

No, It’s Not Trade

A rise in international trade — as a share of G.D.P., measured as either imports or exports using data from the Penn World Tables — is associated with equality, not inequality. The United States imports only a small fraction of the value of its total economy, whereas Denmark and the Netherlands are highly dependent on imports.

Or the Rise of Information Technology

Countries with higher rates of invention — as measured by patent applications filed under the Patent Cooperation Treaty, an indicator of patent quality — exhibit lower inequality than those with less inventive activity. As it happens, tech industries in the United States have contributed just a tiny bit to the rise of the 1 percent, and the salaries of engineers and software developers rarely reach the 1 percent threshold of an annual income of $390,000.

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