Why wages will stagnate for another 14 years

Discussion in 'General Trading Discussion' started by 21stcba, Aug 15, 2014.

  1. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Agreed. Wages here will go up when there are more jobs available, fewer expensive and stifling regulations, lower corporate taxes, and more business-friendly environment overall.
     
  2. troutski

    troutski Guest

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    Not nearly as true as it was even two years ago. Labor and manufacturing costs continue to rise at a rapid pace in China, and the rates in certain sectors are at almost the same cost level as in the United States. More and more jobs are being created because companies are coming back to their home soil for manufacturing. This is due to rising costs in China rather than a renewed sense of patriotism.

    As for wages and stagnation and whatnot, it really depends on where you live. Every minimum wage worker in San Diego saw their wages rise a buck from $8.00 to $9.00 a few months ago thanks to a vote by lawmakers. That's a 12.5% rise in wages just like that, and there are future wage increases phasing into minimum wage in the next two or three years for San Diegans. While some people are trying to repeal the changes, the increase goes all the way up to something like $11.75 for minimum wage.

    Similar stories are playing out across the country in certain cities with varying success rates. Overall wages might stagnate, but plenty of people will see their earnings go up. I learned the other day that most retail workers at The Container Store earn nearly $50,000 per year. Impressive.

    A lot of people like to bring up that higher minimum wage hurts companies, but it really doesn't in most cases. A lot of small businesses pay more than minimum wage to begin with, and larger corporations can't use that sob story against anyone.
     
  3. gats

    gats Senior Investor

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    Raising the minumum wage does not really make an impact on the middle class, just the part time mcdonalds workers. Even though the minumum wage in panama only amounts to around $300-400ish a month of full time work, there are increasing opportunities for the educated worker and it is possible to make at least $2000-4000+ a month. Although these numbers are not impressive to a first worlder, these sorts of opportunites did not exist 10-20 years ago before businesses started flocking to my country or other similar developing countries.
     
  4. valiantx

    valiantx Member

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    An economy, is simply a tangible or intangible place people trade their services, products, and investments. The U.S. Economy is not going to be better because less people are more unemployed or get higher wages for doing the same jobs they have or applying for, it will only get better when people bring more "quality" for or into the things of what I wrote in the last sentence. Also, the U.S.A., doesn't produce a pair of socks or underwear in this nation anymore, and is dependent on other foreign nations to provide such products - many jobs were loss because of businesses outsourcing to obtain better profits, and I agree. However, it is because of the many Legal hindrances in the U.S. Government, that is truly diminishing people's ability to create upstart businesses without all the hassle, restrictions, and monopolizations in the U.S.A.'s economy system. Most importantly, it is the people themselves, that are willing participants to the downfall of any economy - the people are the true power of change in the human world, not a bunch of Government Legislative passing and advisory statutes,
     
  5. Profit5500

    Profit5500 Senior Investor

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    I believe this will always be set when it comes to money. I cannot be surprised one bit when it comes to wages that are always trump by the conditions of the economy. I am just glad that I still got a roof over my head even though its my parents roof.
     
  6. caparica007

    caparica007 Well-Known Member

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    Bosses always want more profit and that in many cases means cut wages, while some get richer the most part does not.
     
  7. moneyman

    moneyman Well-Known Member

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    In my opinion the minimum wage in the Unites states is ridiculously low. You may afford to live it but not able to gain any savings. This might also depend on where are you living since apartments in big cities are really expensive. However, minimum wage reflects directly to consumer prices and therefore prices in US are quite low.
     
  8. caparica007

    caparica007 Well-Known Member

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    That happens in every single country moneyman, middle classes have been disappearing gradually and now all we have is rich and poor people.
     
  9. ally79

    ally79 Guest

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    You definitely cannot live on minimum wage in the United States, not as a single person, and certainly not as a family. Anyone who thinks the cost of goods is cheap here is out of there mind. There have been huge increases in everyday items recently. I buy groceries every two weeks, and for some staple items prices will increase from 50 cents to a $1 in between visits.
     
  10. cameronpalte

    cameronpalte Well-Known Member

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    Its not unfair at all - the rich generally did more work to get where they are (at the last the rich who got there from high wages) and generally got a higher education and that is why they are making more money - the lower end wages will stagnate because their is a lot of demand for jobs that don't require a lot of skill.
     

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