The Minimum Wage Would Be $21.72 An Hour If It Rose With Productivity Since 1968

[Sherman A1]

Activists are mobilizing around President Obama’s call to raise the minimum wage to $9.00, and polling shows that Americans across the political spectrum agree with such a policy.

But here’s an interesting fact about what the minimum wage could be instead. The Center for Economic and Policy Research’s John Dewitt looked at what the minimum wage would be if it simply rose with productivity — that is, if workers were actually paid for the increasing amount of output — since 1968, and found that it would be almost 3 times what it is now:

Since 1968, however, productivity growth has far outpaced the minimum wage. If the minimum wage had continued to move with average productivity after1968, it would have reached $21.72 per hour in 2012 – a rate well above the average production worker wage. If minimum-wage workers received only half of the productivity gains over the period, the federal minimum would be $15.34.

http://boldprogressives.org/the-minimum-wage-would-be-21-72-per-hour-if-it-rose-with-productivity-since-1968/

[Turbineguy]

1. That may be

but then we'd have to pay banksters in the trillions.

[galileoreloaded]

2. And bread would be 10 bucks a loaf.

Fine with me, but those who saved/live on fixed incomes would squeal like pigs.

Life is a tradeoff.

[Sherman A1]

6. I believe that this is a reflection of the loss of

purchasing power by the working class rather than a exact figure. The stagnation of wages (particularly the minimum wage) with the benefits of the productivity increases through the years has pretty much screwed the masses.

Those of us on the lower end of the spectrum should be doing far, far, far better than we are doing.

[LongTomH]

9. Increased productivity tends to hold inflation down, all things being equal

If a worker produces twice as much per hour and gets paid twice as much, the cost attributed to labor should stay the same.

In the real world, of course, a number of things affect inflation, the cost of raw materials, energy, transport, etc. Of course, the fact that shareholders demand ever higher profits is a factor.

[Gorp]

3. Even that is barely a living wage for a family of four.

Okay, maybe it isn't even living wage, but it certainly beats $15K/yr.

[badtoworse]

4. Kiss the Dollar Menu goodbye

[deancr]

5. Big kiss

Elimination of the dollar menu should have been a preventative medicine component of Obama care. Besides, I think most will prefer a living wage to a world full of dollar stores and dollar menus.

[The2ndWheel]

7. If the increased productivity happened without the increase in wages

why would wages be increased as a policy across the board? You might have a boss here and there that increases the money they give to employees, but overall, why would that happen?

Everyone wants more bang for their buck. Everyone wants more for less. Why that would be put into practice in every sphere of life, except labor, doesn't make sense. Live by efficiency, die by efficiency.

[TheMadMonk]

8. Which is almost exactly what I get cleaning bogs...

...on public transport here in Australia. $150 ($20%) per week to my governments (state & federal) gets me most medical, incl. basic optical, but not dental (grrr) plus a good many other services like subsidised child care if I needed it.

[winter is coming]

10. I'd like to see the minimum wage tied to executive compensation.

American CEOs are ridiculously overcompensated. If we set an absolute floor for minimum wage, and also had a requirement that the ratio in compensation between the highest and lowest earners in a company could be no more than X, it would be interesting to watch the fur fly. It's sickening that the rich act like people who want a boost in the minimum wage are greedy. Talk about projection!

[Sherman A1]

11. Interesting

and I believe a very good idea.