News Newt Gingrich Calls for Repeal of Child Labor Laws in Impoverished Areas

[Office_Shredder]

This has little to do with the US situation, but I've been watching how the previous financial crisis was handled in the Netherlands, and one conclusion is that we're partly governed by academic idiots; i.e., most people were handling the situation right, except for the academics. So, yeah, having a degree doesn't seem to imply that you cannot do billions of damage to an economy.

Your anecdotal opinion is persuasive evidence that cannot be countered. Well done sir

 

[MarcoD]

Your anecdotal opinion is persuasive evidence that cannot be countered. Well done sir

Ah, dunno. I doubt we'll ever really find out what happened. I just hope that if we got suckered, no idea, they'll do something nasty with the secret service. Looks to me that that's a place where you should really use them, instead of studying some OWS idiot.

 

[JonDE]

Because somewhere employers that employ at least some folks at the current minimum wage are making the calculation that they can *just* make money by selling a given product with a given payroll. A minimum wage increase necessarily increases that payroll, so someone has to go. There are caveats to the simple story I share here, I know, but it basically holds.

In a booming economy one might argue that the employer is already scrambling to meet demand and so can afford a higher payroll to keep already hard to find help. I don't buy that argument even under those conditions, but certainly not now in a weak economy.

This is essentially wrong for several reasons. First you seem to be implying that employers employ how many ever people they want regardless of outside forces, they don't. Employers employ how many people they need to operate the business. If demand stays the same, they cannot afford to let people go, because they would produce or sell less. What increasing the minimum wage does, is stimulates demand. People that make minimum wage have very bad savings rates. I'm not arguing that it should be massively jumped up to $12, as that could cause severe inflation.
Second you seem to be insinuating that businesses aren't increasing their prices. This is also wrong. Inflation came in last year at over 5%. If per person pay did not increase at a similar rate, the difference would be pocketed as profits.

 

[mheslep]

This is essentially wrong for several reasons. First you seem to be implying that employers employ how many ever people they want regardless of outside forces, they don't.

Employers employ how many people they need to operate the business.

... to operate the business profitably.

If demand stays the same, they cannot afford to let people go, because they would produce or sell less.

Businesses can and do shrink in size (i.e let people go) due to shrinking demand or an increase in supply costs that the market will not allow them to pass on. However, they can not run at at net loss (for long).

What increasing the minimum wage does, is stimulates demand.

So some say, though I'm not convinced.

People that make minimum wage have very bad savings rates.

People that make minimum wage? Do you have a source for that? I believe that many minimum wage earners are youth working part time, if they were lucky enough to find a job in this economy, and as such often do not use wages for daily needs, but instead save for a car and the like.

I'm not arguing that it should be massively jumped up to $12, as that could cause severe inflation.
Second you seem to be insinuating that businesses aren't increasing their prices.

? Not me.

...Inflation came in last year at over 5%. If per person pay did not increase at a similar rate, the difference would be pocketed as profits.

Price increases in sales might also reflect price increases in supply, leaving (possibly) no difference. In any case, wages do no increase only by means of the government forcing them up.

 

[widereader]

Child Labor Laws do protect children. America has these laws that prevent children from being exploited. However, in a country like the Philippines where children has to work to augment food on the table, these laws can sometimes draw out from the reality that sometimes law is not "kind."