This conversation is closed.
Geo-economic minimum wage.
In many areas the minimum wage rate in America at $7.25 per hour adds a lot of fiscal stress. The idea that the bare amount needed to survive on New York City is comparable to the cost of living of Edinboro Pennsylvania or elsewhere in "small town America" is preposterous.
Having to pay an employee a higher minimum wage leads to higher costs which leads to product price increase. So where the first week of a wage increase might help it quickly is compensated for by price increases in retail products. People that were making above the minimum before it was raised end up getting the short end of the stick having to pay more and often not getting a pay increase being that it wasn't mandated.
The minimum wage should be based upon more locational factors. Paying someone working a small town grocer $5 per hour could allow the grocer to keep the price of produce down so that the people could afford to eat for less. In small towns rent is lower and the grocery store employee does not need as much. This would also get jobs to the poorest spots in this country because companies would set up shop in the area where that they could pay their employees the least, help little towns compete against outsourcing. Factors such as average rent, food, and healthcare costs will be used to calculate the cost of living in that area. This calculation would be the scale in which the regional minimum wage is set upon.
Ideas or arguments?
Closing Statement from Thomas Pisarchick
Thanks for all who participated here. We got into some interesting ideas. While the initial question still lingers in my mind other solutions have been offered. Thanks to Richard Hardlovic we looked into a differential ratio for the highest to lowest paid employees. This is an intriguing solution to the distribution of wealth and I look forward to exploring this idea in more detail. We also saw examples why a minimum wage system was so important, how the corporation would exploit their workers without it. The crown jewel seems to me to be the idea of employee owned companies as an attainable way to assist in changing the mentality of corporate ruthlessness. ESOPs create a democracy in the work place and bring in the minds of people who are motivated more then just bringing in a profits to the decision making process. This will inevitably lead to more responsible and human decisions. A group of people representing many factions of society is much less likely to dump toxic waste in a stream or decide to open a sweat shop to exploit children. On top of this this style of company distributes the wealth better, provides a better pay differential ratio. So this leads to how do we create a climate where an ESOP is seen as the best path to conduct business?