No one is talking about a 50% increase in minimum wage, but Draculya makes a good point, he has servants because he can afford them and lives among a society that is accustomed to house servants (brit's and their wacky colonialism). I doubt minimum wage will increase to $10.10/hr. in the US, I see that number as the high to a lower compromise amount agreed by congress, if they pass an increase of minimum wage.
I grew up with house maids, they`re a pain in the ass, always stealing my weed stash when I was a teenager...
Thursday, March 20, 2014 1:31:28 AM
It's not as straightforward as the author suggests. There are some jobs that employers are prepared to pay more for but don`t currently have to. There are others that will simply be cut or moved overseas. That`s one reason why I`m in Hong Kong, a place that benefits greatly from the differing costs of manufacturing between the USA and China.
On the topic of Hong Kong, I have two full-time live in maids and a driver, not counting the wife. Not many people have so many household staff but I haven`t spoken to any that have none. How many people do you employ to do your dishes, make your beds, clean house, mind the kids and bring you a coffee, breakfast and slippers in the morning?
If they increased the minimum wage by 50%, I would fire one of the maids (who are sisters) and make the remaining one work twice as hard. A 100% minimum wage increase would be the demise of the driver, and a 250% increase would mean my wife would have to wake up before (gasp) 8am.
Thursday, March 20, 2014 12:23:20 AM
You bring up increased prices as a result of it. This is correct in at least two ways. One is to cover labor costs, the other is as a result of a rightward shift in the supply curve because of increased incomes.
Now, though this isn't all bad, increasing incomes will do this to the price of some things: