Federal vs State vs Local

Discussion in 'Off-Topic' started by Sokolov, Feb 9, 2017.

  1. Sokolov

    Sokolov The One True Cactuar Octopi

    http://www.desmoinesregister.com/st...m-wage-725-rescinds-local-increases/97625588/

    "Local smackdown: GOP bill would freeze Iowa minimum wage at $7.25, ban city, county increases"

    This is super interesting because it's taking the "local government" argument onto the state level. And where Republicans usually argue for "local government" when it comes to state vs federal, in this case, they seem to be arguing for state control over local municipalities.

    One of the reasons that Republicans often are against state or federal legislation such as minimum wage is that different regions are different (in the case of minimum wage have different costs of living and costs of doing business). However, in this case, they are ignoring that idea and imposing a state-wide laws and minimum wage across the entire state?

    This, from my biased left-wing POV, seems to the way that GOP legislatures in red states are attempting to "control" blue cities - by ensuring that urban areas cannot enact laws in their jurisdiction that the conservative party doesn't like.
     
  2. Sokolov

    Sokolov The One True Cactuar Octopi

    This is something I have noticed in general too, Americans have a fascination with the STATE borders - everything on the STATE level is super important, but often the arguments that makes states important don't extend down to local government. Why is that?

    Why are states different from one another and if you don't like it you can move to another one, but counties within a state not different enough to get similar treatment? Why do they have to be the same across the state?
     
  3. BurnPyro

    BurnPyro Forum Royalty

    To answer this question I would have to start from the assumption that the majority of Republicans (as are to a lesser degree the dems) are not big sellouts. Because otherwise all their talk about Christian values and a better America would just be that, talk.

    I like to believe in people.
     
  4. Ohmin

    Ohmin Forum Royalty

    I don't think that's a safe assumption.
     
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  5. Ohmin

    Ohmin Forum Royalty

    I understand why you have this impression, but I don't think it's accurate.

    I think this is mostly because people tend to focus on what the Federal government does vs. what the States do. In specific the US Constitution which delineates between State and Federal but leaves delineation between State and Local up to each individual State's Constitutions (I'm not sure how they all are, whether they are generally similar to each other to the US Constitution or what. I could read through them all but... meh, I don't have the time or inclination at this point.)

    It's sort of like how people tend to focus so much on the President and what he or she does and says, even attributing Congressional actions to them (and even when the President's cabinet proposes a law it's still Congress that passes, amends, etc. it, President can introduce bills via proxy or veto them, which in turn can be overturned... there's a bit more to it of course but that's the basics).

    I think this is because Federal action (obviously) affects a much larger amount of people, and tends to get much more media coverage.
     
  6. Sokolov

    Sokolov The One True Cactuar Octopi

    Is this story not an example of this?

    Or do you feel this is an exception?
     
  7. Ohmin

    Ohmin Forum Royalty

    I think it's more about politicians being hypocrites (which is not a new thing), than Americans in general not caring. I'm sure many in Iowa care quite a bit, including people that had supported those politicians (at least before now); though I suppose that's an assumption as well. It likely also depends on how well the media has been covering it, and how many like you like looking at local stuff rather than just getting distracted.

    I'm not familiar with Iowa's constitution, so I don't know if it goes against that or if it just goes against the principles of limited government that Republicans might say they want but don't always act in favor of... including when it comes to Federal vs. State issues.
     
  8. BurnPyro

    BurnPyro Forum Royalty

    It's just mindblowing to me how this all goes down to Firk people over and it's like yeah, casual.

    American politics for the most part seems utterly uninterested in helping out the majority of Americans. Maybe that's part of Trumps appeal to blue collar workers and others
     
  9. Ohmin

    Ohmin Forum Royalty

    Politics screwing over the little guy is not exactly unique to America. That said, I do think that certain interests have focused on taking over/exploiting American politics a bit more than some others, in large part because of it's position as a super-power, it's currency being used as a reserve currency abroad, and it's general size and wealth.

    If it would collapse, they'd move onto the next thing (and/or create it to service themselves).
     
  10. BurnPyro

    BurnPyro Forum Royalty

    I'll never understand the obsession with capitalism to the extend that the US seems to be pushing it. Corporations are put on some freaky pedestal.

    How do you justify a minimum wage that is not a living wage? I just don't get it.
     
  11. Ohmin

    Ohmin Forum Royalty

    This is getting a bit off topic but... I thought I'd answer, and it loops around a bit. Please note I'm not trying to argue with you, just providing an explanation and arguments regarding some things that you can think about to help you understand, rather than convince you that those arguments are the only or fully correct ones.

    I'd actually say Corporations being put on a pedestal is more of an issue with Corporatism. http://www.differencebetween.net/mi...ifference-between-capitalism-and-corporatism/

    I don't think that website does a good job of summing how Corporatism actually ends up functioning in many situations (it's very much focused on the ideal manifestation of both). In my view it can often have the opposite effect. TARP is an example of this, as is the creation of the FED with it's special status, no-bid contracts, uneven application of regulations, and the defacto treatment of Corporations as being a special class of "person" for the sake of certain things (esp. lobbying and campaign finance and taxes). You might also find the comments on that page interesting (and/or annoying).

    Of course, the US is a mix, and I'm sure some of the blame rests on Capitalist ideology (I don't think a complete lack of government regulation in business is good, personally), but in terms of Corporations being put on pedestals...

    In terms of your average American Resident... I don't think many of them actually like Large Corporations. At best what you might get is people talking about lowering taxes so they'll hire more people and thus supposedly stimulate the economy in that respect... but then the lowering taxes would also be for everyone else (possibly more so) as well so...

    This is a bit of a different discussion, though more on topic. There are a two main arguments against raising the minimum wage (for any reason):

    1. Raising the minimum wage doesn't inherently mean that more people will get paid more. It can, in some cases, easily lead to companies simply employing fewer people (especially with the rise of our robotic overlords, though in some cases the number of illegal immigrants in a given region [which don't need to be paid a minimum wage since employing them is illegal to begin with] has also been a factor.) Or, in some drastic cases, it can lead to companies folding as they are unable to meet to the minimum demands of the employees they must have in order to operate.

    (Anecdote)
    There was an oriental fast-food teryaki bowl place next to the the grocery store I frequent. I went there a couple times, but they apparently felt they needed to raise their prices... and to me the food wasn't good enough to buy at a buck more. So I stopped going. It seems there may have been some other issues. Eventually, the owner cut back so much on hours for their employees they were only open for 3 days out of the week (down from 6 previously) and for those days only 4-6 hours.

    Eventually it seems to have been sold off (to an "entirely new" oriental fast-food teryaki bowl place, which so far seems to be doing better in terms of employees and hours, albeit not price).

    Obviously, there are undoubtedly lots of stuff going behind the scenes there, but the argument is that that sort of thing could play out... except without the new bowl place taking over because they have the same mandatory issue of minimum wage.

    2. Raising minimum wage puts more money out without increasing supply of goods or services. This could cause inflation in certain markets, such as in essentials like food and gas. Especially if rather than laying people off, business owners choose to raise prices (or do both) in order to cover costs/maintain previous profit margins.

    If the prices of everything goes up enough as a result the raising of minimum wages could actually end up hurting those people (though it's more likely that the overall benefit is simply minimized and they end up with a still-below-living wage or something), not to mention everyone else that was earning more than minimum wage but now has to contend with higher prices without a subsequent increase in their own income.

    (Anecdote)
    You made the thread about Trump's Mexico tariff plan for example. You mentioned how they can "simply raise prices" in order to stick to the US. In a similar way, employers can stick it to their own country/state/county/city (except maybe in Iowa if the bill passes) by raising prices... and there's a fair chance many would probably have to if they can't/don't want to lay people off.


    I'm not saying I necessarily agree or disagree with these arguments, and I'm only providing a basic overview.


    The counter argument to the above generally is:

    In theory, a higher paid workforce can sustain more than the accompanying price increases, and as such actually broaden the market for various goods and services (which in turn could translate into pay increases for people above minimum wage as abundance of trade spreads around).


    Personally, I think raising minimum wages without curbing the FED's penchant for steadily increasing inflation is only half a solution at best... and could in some areas make things worse... as such I'm a great fan of letting states/counties/cities determine for themselves what minimum wage is best... but this also means that some will have particularly low standards... which doesn't always sit well with me since, as this thread I think shows, politicians don't always do what's best for their constituents.
     
  12. SPiEkY

    SPiEkY King of Jesters

    So what I'm hearing is that we need to audit the FED.
     
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  13. Sokolov

    Sokolov The One True Cactuar Octopi

    There is very little evidence that raising the minimum wage gradually has much impact on either employment or prices. Almost all studies into this area negate this idea.

    At the same time, incentives to increase the profit margin exists even without any increase of the minimum wage - which is why we saw an erosion of employer-based retirement plans and reduction in benefits via moving people to just under full-time to get around laws that require them to provide benefits for full-time workers.

    Lastly, pretending that increasing minimum wage has no pressure on other wage brackets is silly.



    Raising the minimum wage by a small amount is not remotely analogous to an across the board tariff of 25-35% on all end products.
     
  14. Sokolov

    Sokolov The One True Cactuar Octopi

    Inflation is actually historically quite low for awhile now:

    [​IMG]

    Especially when we compare to the rest of the world as well:

    [​IMG]

    The country here with almost no inflation, Japan, is not exactly doing well economically and is in a severe debt crisis.
     
  15. Ohmin

    Ohmin Forum Royalty

    Wasn't meant to be. That said, it seems to me that raising Federal MW from 7.25 to a "living wage" would not be a small amount.

    Any (free) studies you could point me to? Or books I might be able to find in a library?

    This isn't an area I've studied personally, I'm just repeating the arguments I've heard (and like I said, I don't necessarily agree with them).
     
  16. Sokolov

    Sokolov The One True Cactuar Octopi

    Virtually no legislation I know of regarding minimum ever hikes it significantly in a short period of time, it always ramps gradually.
     
  17. Sokolov

    Sokolov The One True Cactuar Octopi

    This is one of the best papers on the topic (and is the first Google result you get for Minimum Wage Meta-Analysis):
    http://cepr.net/documents/publications/min-wage-2013-02.pdf

    It also plots the results of dozens of studies, showing that the vast majority is clustered around 0, with a slight lean to the negative.
    upload_2017-2-10_14-28-1.png

    Part of the reason it doesn't have an impact in the way people think/argue ("my pizza will double in price!") is that the cost of doing business is not wholly in minimum wage labor, and across the economy as a whole, minimum wage legislation doesn't actually affect that many workers:

    upload_2017-2-10_14-30-33.png
     
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  18. Sokolov

    Sokolov The One True Cactuar Octopi

    I <3 Meta-Analysis.
     
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  19. Sokolov

    Sokolov The One True Cactuar Octopi

    Now, of course, the actual numbers differ from industry to industry, and some are more affected by others - but there are mitigating factors here.

    One theory is that higher wages reduces turnover (though whether that applies if EVERYONE is getting that minimum wage is debatable).

    In the case of Costco vs Walmart, Costco is estimated at a turnover rate of around 10%, while Walmart is over 40% - one pays much higher than minimum wage, and the other pays minimum wage.

    The cost of replacing an employee is significantly higher than just paying the same one, of course, some estimates puts it at 2x the annual cost, so a 40% turnover is increasing the cost of the employee by 80%.

    This, again, has the caveat that this obviously makes sense when Costco is offering above average wages and will attract and retain better workers... while it seems reasonable to believe that Walmart is not attracting the same caliber of people, and that if both were forced to be the same (but higher) wage, this effect might not exist.
     
  20. Sokolov

    Sokolov The One True Cactuar Octopi

    All that said... I believe all this changes with the rise of automation, so maybe all this past data is moot now.
     

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