The journey from there to here
Published on September 13, 2006 By Gideon MacLeish In Current Events

It's real easy to look at individuals working in low wage jobs and pity them. The jobs don't pay too well, and too often you see people who are obviously parents, with financial responsibilities and other expenses, holding down these jobs.

There's a tendency to want to "cure" the situation by somehow offering a form of wage equity--by paying more to these workers so they won't have to struggle simply to provide the basics of life. But as noble as the intent of such proposals may be, they are also quite misguided.

You see, as Draginol has pointed out on another thread, usually your earnings are tied directly to the revenue you produce. A burger flipper may fill a necessary niche in society, but they really don't produce enough of value to, say, make their wage equal to that of a computer programmer. Sure, they can get better paying jobs in the service sector, but in the end there is only so much value you can assign to these jobs.

Then there's the idea of upward mobility. Why do we work to go through college? Because of the prospect of jobs that pay better and offer us more of what we value, be it money or time. If you take away the added value that a degree brings, then you essentially remove the incentive for that degree. As a result, more people will be inclined to remain in service jobs rather than seeking jobs that provide greater value.

The truth is, people CAN make it on low paying jobs. The fact that many do is testament to that truth. Sure, it may be difficult, but that difficulty, however unpleasant, should serve as an incentive for personal achievement. Redistributing the wealth lowers the GDP by failing to provide an incentive for achievement, and the lower GDP makes higher taxes necessary to pay the cost of government. Basically, it wipes out the economy.


Comments (Page 1)
2 Pages1 2 
on Sep 13, 2006
Redistributing the wealth lowers the GDP by failing to provide an incentive for achievement, and the lower GDP makes higher taxes necessary to pay the cost of government.


I think the old USSR found out that lesson the hard way.
on Sep 13, 2006
.
on Sep 13, 2006
Not to mention hasten their replacement. McDonalds is already testing an automated burger flipper and order kiosk.

The more cost effective that becomes the sooner they’ll be out of a job.

In fact in the near future you will have to have considerable training to get any work at all.
on Sep 13, 2006
.
on Sep 13, 2006
Another interesting thing along the same lines is that most millioniers never finished college... Makes you think doesnt it?
on Sep 13, 2006
You have got to be kidding?!!!!!!!!!!!!


I kid not.Link

on Sep 14, 2006
I agree with your argument but I would say that a reevaluation of some salaries is warranted. Equity definitely not. I spent 3 years in University, paid nearly $18,000 in course fees and had to put up with dating argumentative girls who were a whole lot smarter than me. If someone just wants to flip burgers their whole life then great but theres no way they should take home what I earn. Did i mention the girls i dated? Brothers and sisters I "earned" my ticket to Liquidsville. Whew.

On the other hand a CEO clearing $100 million in stock options plus a golden handshake for 2 years "work" that saw his companys sales contract by 5% in a growing economy. That "aint" right.


on Sep 14, 2006
If you can't make a living with minimum wage then the minimum wage is too low.

If you take the profit out of selling hamburgers because you cost too much to McDonalds then the burgers are too cheap.

If burgers are more expensive, less people buy them, cures US. fat problem.

So more money to low wage McDonalds workers = a good thing.
on Sep 14, 2006
"If you can't make a living with minimum wage then the minimum wage is too low."

What does that mean? Who cannot make a living with minimum wage???

on Sep 14, 2006
I have always wondered what posseses people to think that somehow they feel they deserve to get paid more money when working in places like McDonalds, a place where replacing an employee is about as easy as making french fries. I worked for KFC for 2 years when I was 18. I felt that my $5.25 an hour was deserved, after all, everything in there was a piece of cake to make and I didn't even need a high school degree to do it. I eventually made it to supervisor within a year and was making $7 which I thought was great, but I never thought I deserved a high rate of pay as a cook or cashier cause the job was just too easy. Off course I was only a teen and did not have 4 mouths to feed like I do today.

It's real easy to look at individuals working in low wage jobs and pity them. The jobs don't pay too well, and too often you see people who are obviously parents, with financial responsibilities and other expenses, holding down these jobs.


I was one of those parents, my biggest mista was to have a family before I was financially ready. Don't get me wrong, I don't regret my children, just wish I could have been better prepared. My fault. I have however survived and I have found better positions. There is still hope, you need just to believe in yourself. People need to try harder and try different ways to find jobs, it can be done. I am living proof of it.

There's a tendency to want to "cure" the situation by somehow offering a form of wage equity--by paying more to these workers so they won't have to struggle simply to provide the basics of life. But as noble as the intent of such proposals may be, they are also quite misguided.


I always thought that the way to better your financial situation was to find something that paid better. I have never considered a job in fast food places to be something I would count on to maintain a family, no one should consider it. Just because it's all you can find does not mean you should get more. People get paid more in other jobs cause they have the necessary skills for the job and so the pay is justifiable.

Then there's the idea of upward mobility. Why do we work to go through college? Because of the prospect of jobs that pay better and offer us more of what we value, be it money or time. If you take away the added value that a degree brings, then you essentially remove the incentive for that degree. As a result, more people will be inclined to remain in service jobs rather than seeking jobs that provide greater value.


School is probably the best chance of securing a better future for you and your family. I plan on getting some kind of diploma in the IT field. It's what I like, but it's up to me to go for it.

Great article, it's a shame that people are driven by money now a days that they want to do less and get more. Now a days one needs to look across the border or into the illegal underground to find hard working people. What a shame.
on Sep 14, 2006

video.google.com/videoplay?docid=4040930009676933149
on Sep 14, 2006
Why don't people think that wages and salary are nothing more than the price at which WE the workers are willing to sell our time and skills?

When we go into a store, we look for the best price for the best quality we can afford. When employers go to the market place of potential employees, they do the same... in fact, there is NO difference.

Wages for burger flippers and other non-skilled labor is where it is for one reason, the people doing those jobs are willing to accept that wage...

People are always whining about what they make, but few are willing to do anything constructive to increase it. Sure, there are those who accept jobs out of desperation, and I commend them for being willing to do what needs to be done. However, if 5 years later they are still in that "desparation" job, I don't listen much if they complain.

Employers aren't here to make sure we all live like they do, they are here to get the same thing we are after when we enter any marketplace... Government interference and price controls only messes with normal and healthy economic cycles.

If we force equality of outcome, we destroy equality completely. Once again, great aricle gid!
on Sep 14, 2006
If you can't make a living with minimum wage then the minimum wage is too low.


I was going to go down a path related to this in comparing the cost of the next least expensive alternative to human burger flippers to the current price paid for human burger flippers. The fact that a robotic burger flipper is considered the next viable alternative and yet its not yet economically feasible to implement would suggest there is room for upward movement in the price paid to a McDonalds worker. If they all quit then the robots would have to do it (which is currently uneconomical), so a cheeseburger would cost $10. That would kill the McDonalds business model. It would no longer be viable.. Im not going to pay $10 for a cheeseburger.

If the McDonalds worker was properly unionised they could negotiate a figure somewhere higher than what they are currently receiving but obviosuly less than what the robots cost to implement.

Either way the reason I didn't go down that path is I figured the article was not actually about minimum wage but wage equity. Two very different animals.
on Sep 14, 2006
I'd rather have a robot flip my burgers. Less chances of spit ending up in them.

Mmm...$10 spit, booger, zit, and bodily fluid-free burger...
on Sep 14, 2006
Mmm...$10 spit, booger, zit, and bodily fluid-free burger...


You've got no sense of adventure, Tex.

On topic...

I don't believe in wage equity but I do believe in a living wage. I don't think the employer has to pay that though - current minimum wages (in my own country at least) are sufficient. The rest can come from popular largesse in the form of all those ancient and still-functioning government services.

It doesn't seem to be crippling Oz anyway to ensure a living wage, although we haven't taken the route of wage equity.
2 Pages1 2