{"id":536840,"date":"2023-01-07T17:30:00","date_gmt":"2023-01-07T14:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/real-wage-growth-solution-is-jobs-not-government-interference\/"},"modified":"2023-01-07T17:30:00","modified_gmt":"2023-01-07T14:30:00","slug":"real-wage-growth-solution-is-jobs-not-government-interference","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/real-wage-growth-solution-is-jobs-not-government-interference\/","title":{"rendered":"#Real wage growth solution is jobs \u2014 not government interference"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a1b2a51247\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a1b2a51247\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/real-wage-growth-solution-is-jobs-not-government-interference\/#%E2%80%9CReal_wage_growth_solution_is_jobs_%E2%80%94_not_government_interference%E2%80%9D\" >&#8220;Real wage growth solution is jobs \u2014 not government interference&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CReal_wage_growth_solution_is_jobs_%E2%80%94_not_government_interference%E2%80%9D\"><\/span>&#8220;Real wage growth solution is jobs \u2014 not government interference&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Remember all that progressive bellyaching about income inequality a few years ago? Whatever became of that?<\/p>\n<p>Nothing, of course.<\/p>\n<p>As it turns out, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/qz.com\/us-income-inequality-hasnt-risen-for-a-decade-1849615199\">US income inequality has not risen in a decade.<\/a> Is that thanks to minimum-wage increases and big, New Deal-style public-spending programs? No, it is thanks to the best <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a>-welfare program known to man: a tight labor market.<\/p>\n<p>Outside of the recent layoffs in Silicon Valley, things have been looking pretty good for US workers as demand for labor outpaces the supply, producing higher wages, better benefits, and superior working conditions. Even with substantial economic headwinds \u2014COVID-19, geopolitical uncertainty, inflation\u2014the median \u201creal\u201d (meaning inflation-adjusted) household income rose by more than $10,000 over the past decade, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/MEHOINUSA672N\">according to the Federal Reserve.<\/a> <\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/federal-reserve.jpg?w=1024\" alt=\"According to the Federal Reserve, average American household income has risen by $10,000 over the past decade. \" class=\"wp-image-25239045\" width=\"618\" height=\"411\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/federal-reserve.jpg?quality=75&amp;strip=all&amp;w=1233 1236w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/federal-reserve.jpg?quality=75&amp;strip=all&amp;w=925 927w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/federal-reserve.jpg?quality=75&amp;strip=all&amp;w=618 618w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/federal-reserve.jpg?quality=75&amp;strip=all&amp;w=308 309w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/federal-reserve.jpg?quality=75&amp;strip=all 1024w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\"\/><figcaption>According to the Federal Reserve, average American household income has risen by $10,000 over the past decade. <\/figcaption><figcaption><span class=\"credit\">Shutterstock<\/span><\/figcaption><\/figure>\n<p>And there is good <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> at the lowest end of the income-distribution curve, as well: The wages for US workers in the bottom 10% of earnings are on average a third higher than their states\u2019 minimum wages, according to data from the US Department of Labor <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/large-pay-gains-outpace-state-minimum-wage-boosts-for-many-workers-11672358864?mod=economy_more_pos1\">analyzed by The Wall Street Journal <\/a>and Professor Nathan Wilmers of MIT Sloan. Which means that while politicians argue about passing laws to increase the statutory minimum wage, the economy has boosted earnings all on its own.\u00a0<\/p>\n<p>Politicians believe that the minimum wage is whatever they say it is, but that is only the <em>legal <\/em>minimum wage: The economic minimum wage \u2014 the real minimum wage \u2014 has always will be the same: $0.00 per hour. When the minimum wage gets so high that the cost of a worker is no longer economically sustainable, that worker doesn\u2019t get a raise\u2014he gets fired.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"682\" height=\"1024\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/nathan-vilmer.jpg?w=682\" alt=\"Nathan Vilmer, a professor at MIT, reports that the nation's lowest-earners are actually being paid one-third more than their states' minimum wage \" class=\"wp-image-25239048\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/nathan-vilmer.jpg?quality=75&amp;strip=all&amp;w=1023 1023w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/nathan-vilmer.jpg?quality=75&amp;strip=all&amp;w=682 682w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/nathan-vilmer.jpg?quality=75&amp;strip=all&amp;w=341 341w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/nathan-vilmer.jpg?quality=75&amp;strip=all 1024w\" sizes=\"auto, (max-width: 682px) 100vw, 682px\"\/><figcaption>Nathan Vilmer, a professor at MIT, reports that the nation\u2019s lowest-earners are actually being paid one-third more than their states\u2019 minimum wage <\/figcaption><\/figure>\n<p>Although the effects often are overstated, economists as varied as Milton Friedman and Paul Krugman have confirmed the commonsense proposition that higher minimum wages tend to increase unemployment, particularly among workers with the lowest skill level.\u00a0Krugman once observed that progressives \u201cvery much want to believe that the price of labor . . . can be set based on considerations of justice, not supply and demand, without unpleasant side effects.\u201d<\/p>\n<p>Some politicians hate to admit what Krugman so plainly pointed out, but everybody knows it, which is why the minimum wage in the District of Columbia is $16.10 an hour and not $70 an hour, which is about what you\u2019d need to live comfortably in Washington.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/florida-amazon-center.jpg?w=1024\" alt=\"In states like Florida, companies such as Amazon can pay up to $18 an hour, far above the state's $11 minimum wage level.  \" class=\"wp-image-25239050\" width=\"618\" height=\"411\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/florida-amazon-center.jpg?quality=75&amp;strip=all&amp;w=1233 1236w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/florida-amazon-center.jpg?quality=75&amp;strip=all&amp;w=925 927w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/florida-amazon-center.jpg?quality=75&amp;strip=all&amp;w=618 618w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/florida-amazon-center.jpg?quality=75&amp;strip=all&amp;w=308 309w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/florida-amazon-center.jpg?quality=75&amp;strip=all 1024w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\"\/><figcaption>In states like Florida, companies such as Amazon can pay up to $18 an hour, far above the state\u2019s $11 minimum wage level.  <\/figcaption><figcaption><span class=\"credit\">NurPhoto via Getty Images<\/span><\/figcaption><\/figure>\n<p>The big downside here is that workers are in a strong bargaining position in part because so many Americans have exited the workforce entirely. As recently as 2001, two-thirds of working-age Americans were in the labor force, but by 2020 that share fell to 60% \u2014 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/CIVPART\">it has since recovered a little, but not much<\/a>. The story there is complicated: Some of those former workers are stay-at-home parents whose families don\u2019t need the second income, while others are aimless young people who have given up on work prematurely. <\/p>\n<p>But even with the necessary caveats in mind, this is a good time for workers, particularly those in positions that we think of as minimum-wage jobs that today pay considerably more than minimum wage. The minimum wage in Florida, for instance, is $11 an hour, but the starting wage in an Amazon warehouse in Florida ranges from $14 to $18 an hour. Fast-food restaurants from Staten Island to The Bronx currently are hiring at more than New York City\u2019s $15 minimum wage.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/construction-workers.jpg?w=1024\" alt=\"To further increase wages of blue-collar employees such as these Washington, DC construction workers, the government needs to reduce competition from undocumented immigrants. \" class=\"wp-image-25239055\" width=\"618\" height=\"411\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/construction-workers.jpg?quality=75&amp;strip=all&amp;w=1233 1236w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/construction-workers.jpg?quality=75&amp;strip=all&amp;w=925 927w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/construction-workers.jpg?quality=75&amp;strip=all&amp;w=618 618w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/construction-workers.jpg?quality=75&amp;strip=all&amp;w=308 309w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/construction-workers.jpg?quality=75&amp;strip=all 1024w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\"\/><figcaption>To further increase wages of blue-collar employees such as these Washington, DC construction workers, the government needs to reduce competition from undocumented immigrants. <\/figcaption><figcaption><span class=\"credit\">The Washington Post via Getty Images<\/span><\/figcaption><\/figure>\n<p>If the politicians want to pursue a truly pro-worker agenda, they should forgo legislating higher wages via minimum-wage increases and instead implement policies that will increase a paycheck\u2019s real-world value. What lower-income workers in places such as New York City need most is not simply a higher minimum wage but affordable housing, reliable transit, cost-effective health care and education options, and safe communities. Construction and hospitality workers probably would <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>reciate having less competition from illegal immigrants, too \u2014 though there is little hope that the Biden administration will do anything about that.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/minimum-wage.jpg?w=1024\" alt=\"The positive Federal Reserve data confirms that boosting household spending power best happens when the government encourages job \u2014 rather than wage \u2014 growth.\" class=\"wp-image-25239060\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/minimum-wage.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/minimum-wage.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/minimum-wage.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The positive Federal Reserve data confirms that boosting household spending power best happens when the government encourages job \u2014 rather than wage \u2014 growth.<\/figcaption><figcaption><span class=\"credit\">Shutterstock<\/span><\/figcaption><\/figure>\n<p>The only wage a politician can reliably raise through legislation is his own\u2014and politicians are always happy to do that, as New York lawmakers recently did. But encouraging strong economic growth and the high demand for workers requires the type of intelligent, sustained efforts that are much more urgently important to people who don\u2019t have Wall Street-level incomes to throw at the problems of daily life. Strange that those who talk the loudest about \u201csocial justice\u201d often ignore the very problems that the poor and regular workers have to live with \u2014 problems that the rich hear about on the news or experience mostly through limousine windows.<\/p>\n<p>As David Neumark of the Center for Population, Inequality, and Policy tells The Wall Street Journal: \u201cI don\u2019t want to say the minimum wage has become irrelevant, but it has certainly become less relevant.\u201d The best kind of policy would be one that makes the minimum wage even less relevant in the future \u2014 along with an economy in which high wages are not a gift from politicians but the result of highly productive workers in a highly efficient and flexible labor market.<\/p>\n<p>The politicians, for their part, prefer the patronage model \u2014 which is why nobody should trust politicians with their livelihood.\u00a0\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2023\/01\/07\/real-wage-growth-solution-is-jobs-not-government-interference\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Real wage growth solution is jobs \u2014 not government interference&#8221; Remember all that progressive bellyaching about income inequality a few years ago? Whatever became of that? Nothing, of course. As it turns out, US income inequality has not risen in a decade. Is that thanks to minimum-wage increases and big, New Deal-style public-spending programs? No,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":536841,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2023\/01\/minimum-wage-up1.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[138142,70550,5070,74150],"class_list":["post-536840","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-1-7-23","tag-federal-reserve","tag-jobs","tag-minimum-wage"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/536840","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=536840"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/536840\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/536841"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=536840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=536840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=536840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}