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Originally Posted by signupdamnit
Well I don't know everything and I'm not an economist (though sometimes I pretend) but generally when looking at the wealth inequality charts in the US since 1970 and comparing it to productivity gain charts it seems to me that some trends should be reversed a bit.
Also (and partially because of the above) generally I think it is better for most workers (the bottom 90 or 80% let's say) for the minimum wage to be pushed up rather than down. This is because, yes, I think it will put some upward pressure on other more middle class wages. The reverse is also true too. If you say dropped the minimum wage to $3 or even eliminated it then it would probably put some downward pressure on wages.
Again I don't know everything but if you look at past charts which adjust for inflation a $9 minimum wage is about the average for much of the period past 1960 up until about the early 80s. I think a $9 minimum wage then is reasonable and thereafter I think it should be adjusted annually for inflation. I guess you might argue that it should be raised more to help reduce income and wealth inequality. I'm not sure that is the best option. For now stopping the bleeding would be a good first step.
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In my state (California), the minimum wage was voted some time back to increase to $9 this year. I guess it is $7.25 elsewhere, which is also not far off from your $9 number.
I guess I think that wealth inequality is when you have huge corporations getting corporate welfare from the US taxpayers, while paying almost no taxes themselves, and spending their money offshore so there is not even any trickle down . . . while inflation (extra huge for items like houses and cars and school) and factors like absurd gas prices drive up the cost of basics including food and make a living wage very hard, not just for people at the bottom, but for people in the middle. That's before we even get into that a person who makes $250k probably gives roughly half to the government, but someone making $250 mill almost certainly does not.
I agree strongly that wealth inequality needs to be addressed. But I think opportunity (including access to affordable capital) and education and fairer tax laws (and maybe public works) are the answer. Not arbitrarily raising the bottom end to something impossible.
A guy who owns a Subway franchise probably makes $55k a year. That is a mid-level income person, not a one percenter.