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View Diary: Why $17 an Hour Should be the Minimum Wage (95 comments)

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  •  I agree with the idea but I have some (1+ / 0-)
    Recommended by:
    Free Jazz at High Noon

    cognitive dissonance.

    Back when I was earning the $17 an hour you mention.... as an intern...

    My work ended up being patent-able as such I am sure the company made off very well.

    But for whatever reason I have a hard time feeling my labor  was worth more than that.

    Over the years..it appears that our population has simply lost touch with the value of labor.  

    •  In modern production and with the gains (8+ / 0-)

      in productivity wages often play only a small part in the costs of the finished article.

      However when you insert the cost of the CEO and the board into the production costs significant differences can be seen.

      One of my clients actually calls one of their production units the CEO salary line.

      "Another world is not only possible, she is on her way. On a quiet day, I can hear her breathing." Arundhati Roy

      by LaFeminista on Sun Mar 31, 2013 at 11:31:01 PM PDT

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      •  Hmmmm, (0+ / 0-)

        In modern production and with the gains in productivity wages often play only a small part in the costs of the finished article.

        Isn't that because wages are so depressed?

        The banks have a stranglehold on the political process. Mike Whitney

        by dfarrah on Mon Apr 01, 2013 at 09:02:30 AM PDT

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        •  No, time taken has been greatly reduced due to (1+ / 0-)
          Recommended by:
          lunachickie

          automation, logistics and changes in production line/process design.

          "Another world is not only possible, she is on her way. On a quiet day, I can hear her breathing." Arundhati Roy

          by LaFeminista on Mon Apr 01, 2013 at 09:18:27 AM PDT

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          •  If labor had participated (0+ / 0-)

            in the productivity gains over the past 30 years, wouldn't labor costs be a greater proportion of the cost of the item?

            The banks have a stranglehold on the political process. Mike Whitney

            by dfarrah on Mon Apr 01, 2013 at 09:32:50 AM PDT

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            •  Highest costs are materials (0+ / 0-)

              It would be nice if they were even at the same level as 30 years ago,

              Productivity has outstripped labor costs

              "Another world is not only possible, she is on her way. On a quiet day, I can hear her breathing." Arundhati Roy

              by LaFeminista on Mon Apr 01, 2013 at 09:34:18 AM PDT

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              •  I think it depends on what you are producing (1+ / 0-)
                Recommended by:
                VClib

                if you are making an I-phone that may be true, if you are making a medical device then the actual cost to produce the device are much cheaper than the costs of development, regulatory, trials, marketing, sales, and service.

                If you look at GE, Philips, Siemens, Boeing, Microsoft, and even Apple their largest controlled cost is going to be wages and benefits.

                •  I worked for GE medical in Europe (1+ / 0-)
                  Recommended by:
                  Fall line

                  there was a distinction

                  Overheads labs, logistics, buying, sales, services etc etc

                  Direct labor. Production

                  Those in R&D didn't come in the minimum wage category, in fact GE paid reasonably well although  six sigma really was a total brake on creativity.

                  "Another world is not only possible, she is on her way. On a quiet day, I can hear her breathing." Arundhati Roy

                  by LaFeminista on Mon Apr 01, 2013 at 02:10:34 PM PDT

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                  •  I worked for GE Healthcare as well (1+ / 0-)
                    Recommended by:
                    VClib

                    in the ultrasound division.  

                    You are correct that any minimum wage increase wouldn't really change the marginal cost of production in the factory.  I know for a fact that no-one in the CV ultrasound factory made less than $32k a year (of course the CV Ultrasound factory is in Norway).

                    But it would effect costs for components, shipping, accessories, etc...

                    Also this would create a headwind in future sales as individual physician practices, already being pressured by changes in reimbursement, would put off future equipment purchases if they had an increase in labor costs of $35k a year.   Same thing in the hospital environment if they had to bring everyone up to $17 an hour.

                  •  What happened with (0+ / 0-)

                    six sigma?

                    The banks have a stranglehold on the political process. Mike Whitney

                    by dfarrah on Mon Apr 01, 2013 at 07:05:47 PM PDT

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            •  a little chart (0+ / 0-)

              "Another world is not only possible, she is on her way. On a quiet day, I can hear her breathing." Arundhati Roy

              by LaFeminista on Mon Apr 01, 2013 at 09:37:11 AM PDT

              [ Parent ]

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