Chris Cannon's Answer To The Minimum Wage

[unfad1ng]

Cannon is so right, If the minmum wage is to high, buisnesses wount hire the poor people and that will  make them jobless

[aneal138]

1:30 You serious? You tell that to a couple on MW that are raising 5 kids, and can't even put food on the table to go back to school. So on minimum wage, how do they afford school when they're already paycheck to paycheck. School DOES NOT always increase pay! This guy is so dilusional. How did he get into office?

[aneal138]

1:20 BAM, i like the guy on the left.

[LibertarianChristian]

minimum wage causes unemployment. Freedom causes greater prosperity for the most amount of people, not laws from the government.

[YoungTon22]

@LibertarianChristian allowing a mass amount of people to be underemployed increases pay outs from "entitlement" programs. if i am paid the exact amount or less than it takes for me to live than i am a very limited consumer. without able consumers the US economy collapses.

[willzyx1980]

@nfwvideo1

1) Which article are you quoting?

2) Total nominal spending in the economy is determined by the money supply and the velocity of money. It has nothing to do with wages. If I pay you $10 then you have $10 more to spend, and I have $10 less to spend. If I pay you $50, then you have $50 more to spend, and I have $50 less to spend. Either way the amount of total nominal spending is unchanged. Your argument is entirely irrelevant to the subject of the effects of minimum wage laws.

[willzyx1980]

@nfwvideo1

Don't change the subject. I'm not talking about GDP, I'm not talking about other determinants of profitability, and I'm not talking about other labor laws. I claimed that minimum wage laws increase unemployment among low-skilled workers. You disagreed. To resolve this disagreement we need to look at the data. You can find it in economic journal articles, or in a meta-analysis such as the Neumark and Wascher book. Either way, the data overwhelmingly support my claim, not yours.

[YoungTon22]

@willzyx1980 minimum wage laws probably do increase unemployment due to the fact that companies pick up and move to countries where they can pay laborers almost nothing. im glad that there are laws here that start to prevent that type of underemployment. if a company can pay us dirt than they most definitely will. there is too much evidence to support it overseas.

[willzyx1980]

@nfwvideo1

It's not an insult to say that some people produce less than $7.25 per hour, it's a statement of fact. Again, you're confusing need with productivity.

Regardless, the evidence does not support your argument. Instead of picking a pet theory and ignoring the facts that contradict it, you should learn what the facts are and figure out which theory conforms to them. The reality is that the minimum wage law puts low-skilled workers out of work. Look it up.

[YoungTon22]

@willzyx1980 well in manufacturing your first statement is correct only if the price of the product itself divides amongst the workers to less than 7.25/hour. essentially the price of the product produced is exactly equal to the labor that created the product. the owners cost to produce the product mostly reflect the laborers agreement to work for less than what the product can be sold for. without the laborer there is no product.

[willzyx1980]

@YoungTon22 You have it backwards. The price of the product is determined by supply and demand (demand by the preferences of consumers, and supply by the next most valuable alternative use of the inputs). The price of the product then determines the demand for labor, the supply of labor being determined by the worker's own preferences. The supply and demand for labor then determine the price of labor--the wage. In short, the price of the product determines the wage, not the other way around.

[YoungTon22]

@willzyx1980 how can i have it backwards? your statement works from the product back to the laborer as if there would be a product without a laborer.supply and demand determine the price, yes. im simply saying whatever the price of the product may be, the product is still a direct result of labor. if i build clocks and sold clocks my labor is equal to what the clock is sold for. if i have 5 workers build the same clocks for me then there labor is also equal to what the clocks can be sold for.

[willzyx1980]

@YoungTon22 Yes, what I said is that the value of a factor of production is determined by the value of the final product, not by its cost of production. That's called the Theory of Derived Demand, which is the opposite of your claim, the Labor Theory of Value. The Labor Theory of Value was decisively refuted in the 1870s during what is called the Marginal Revolution--the discovery of the Theory of Marginal Utility by Carl Menger, William Stanley Jevons, and Leon Walras. You have it backwards.

[YoungTon22]

@willzyx1980 okay, i dont think were on the same page. im not debating the price of a product is determined by its cost. what im saying is it doesnt matter what the final price is, labor still created what is being sold. im not debating how value of a product is derived at all. my comments have been about the true value of the laborer.im simply saying it is common sense to see how there will be no product without labor. whether you have 100 employees or it is just you. the product you put on...

[YoungTon22]

@willzyx1980 ....the market was from your or all 100 employees effort. i guess its easier to think about what im saying if you use my example of a single clock builder. the price will be what it is due to other factors like youre saying. not debating that. but whatever the price is, i myself put in the labor to earn it. now how can that same principle not be applied if i had 100 clock builders working for me? whatever the price is, that is there worth or value.i appreciate the crash economics

[willzyx1980]

@YoungTon22 You are confusing profits with wages. If I build a clock on my own, I pay the costs up front (parts, my labor, etc.) and get revenue when I sell it. The difference is my profit or loss. If I hire you to build a clock, I'm paying you up front. If revenue > cost I earn profits, if revenue < cost I earn losses. But even if I earn losses--even if the clock is worthless and I have to trash it--you still get paid for your labor.

[willzyx1980]

@YoungTon22 The point is that when you say "the price of the product produced is exactly equal to the labor that created the product" this is simply not true. The point of a wage contract is precisely to divorce the price of the product from the worker's wage--to shift the risk of profits and losses onto the entrepreneur. Everyone is free to be an entrepreneur and earn profits; in practice most choose wage labor because they prefer to avoid the risk of losses.

[YoungTon22]

@willzyx1980 ok at least were on the same page now. like i said, i appreciate the free lessons. lol. youre very knowledgeable and its always good to have a proper debate on youtube. most these people are idiots. "the price of the product produced is exactly equal to the labor that created the product". the only reason it isnt true is because of the contracts. your original statement was about workers producing 7.25. i just wanted to express the actual truth about a laborers value.

[YoungTon22]

@willzyx1980 .....the point about contracts also actually goes back to my original statement saying that laborers agree to work for less than the product can be sold for.

[willzyx1980]

@YoungTon22 You too! Now, "less than the product can be sold for" is different from "less than the worker produces." In reality there is more to production than simply labor (e.g. there is rent on land, rent on capital, technology, entrepreneurial risk, etc.) and those other inputs must be compensated too. Workers get paid for what they produce. Wages are lower when workers produce less--including when they shift risk to the entrepreneur and assume less themselves. Contracts just reflect this.

[YoungTon22]

@willzyx1980 ok. agreed. there is no debating that.

[willzyx1980]

@nfwvideo1

What someone needs and what someone can produce are two different things. Wages are determined by productivity. If a firm pays its workers more than they produce, it will go out of business. If the minimum wage is higher than someone's productivity, that person will have to be laid off. Dozens of economic studies confirm that this is the case. Educate yourself. Go to Amazon and look up Neumark and Wascher's recent book "Minimum Wages" for a summary of the empirical literature.

[jrcj2010]

"If you're on minimum wage, go back to school..."

Umm, you need money to go back to school first of all, so how is that going to happen anytime soon?

[MrShinigami1392]

@jrcj2010

I don't think he ws referring to college education, but high school level education. Most people who are making minimum wage are teenagers. If those teenagers don't have at least a high school diploma or a GED, then they'll most likely be making minimum wage for a long time.

[vdubs4life1964]

the Minimum Wage curve should follow the inflation curve. Right now they are at both ends of the spectrum. This is a disconnect. Depression soon.

[BrettDunbar]

@vdubs4life1964 nope.

[n441]

it was the liberals (the New Deal)

who brought the 8 hour work day, vacations with pay, unions, child labor laws, health care, pregnancy leave, death in the family leave, and the Middle Class.

So, what would a life under your leadership look like?

[bobalu10]

that was the communist party

[nate749]

what that brought those things?

[nate749]

i guess takeing care of workers is "communism" paint me red than

you know its funny when people say CEO takeing pay cut is communism but a worker on the line takeing a pay cut its called "return the company to profitablity" what a joke

[willzyx1980]

@nate749

You are the joke. The minimum wage puts the poorest workers out of work. How is that "taking care of workers"?

[JasonCIAHudson]

@nate749 No one is saying that taking care of workers in communist. If a manager or a businessman raises wages than that is good. If a CEO voluntarily takes a pay cut or is forced to after the board takes a vote that is not communist. What is "communistic" is having the government force a CEO to take a pay cut or a pay increase for that matter. And the government should force pay raises. If the job requires alot of skill than naturally the employees' pay will go up.

[labulldog5]

"Profiteering"...what an idiot. Pick up a economics for dummies and you'll see that MW are counter-productive and ineffective.

[ifranqui58]

I agree with the older gentleman - go to school and stop complaing! Raising the minimum wage is NOT the answer - poor people need to take responsibility for their irresponsible behaviors (e.g. drug addicts & fat people)...

[bobalu10]

but it's their culture...

[nate749]

what an asshole

[Goobian]

there should be a law that politicians have to live in a cardboard box for a week every year. They gripe and gripe but if their 25,000 (or more) christmas bonus is late, that is when they really complain!! They don't know what it's like to be a blue collar regular joe and so they don't care to sacrifice for them. It should turn back around so the poor make the rules not the rich. Because believe me, there are a lot more of us and we deserve the nice silk sheets, not them. Humph.

[Kingofcrows]

Wow. Just goes to show you that Republicans are totally out of touch with the working class.

[bobalu10]

In USA 98% of people earing minimum wage haven't graduated highschool yet...how bout u?

[ralphKNS]

"In USA 98% of people earing minimum wage haven't graduated highschool yet...how bout u?"

You pulled that right out of your anus.

[Kaycee31516]

What is sad is that even if they raise the minimum wage, they will just raise up all of the prices on everything and the poor people still suffer with little to nothing. This government sucks!

[bluemanredstate]

I live in Utah and Cannon is indeed a complete douchebag

[mulroney777]

What a complete asshole.

[flyincircus]

Too bad no one is going to see this in Utah and maybe have that light bulb go on. Utah is so conservative it hurts. They mainly vote(like most americans, sadly) on moral issues. They won't care about minimum wage.

[scottlarsen]

I agree. Moral issues are very important to the LDS conservative population of Utah, but why do they support the greed and exploitation of corporate profit takers? Of course he is against the poor making more minimum wage. His financial backers are conservative capitalists who would pull jobs from Utah and ship them overseas at the first sign of more profits somewhere else.

[atedogonce]

Anyone see the Morgan Spurlock (SUPER SIZE ME director) series 30 DAYS, where he and his girlfriend lived on minimum wage for 30 days in Ohio. Even after getting free furniture, a bus pass, and working multiple minimum-wage jobs, they were $1,200 in the hole. Minimum wage is broken. I challenge any of these politicians to live on it for a month, much less a whole lifetime. Raise it!