167,000 jobs created last month - Nubblies.net Forums

f3lix · 01-05-2007, 09:38 AM

Normally, I couldn't give a shit about "new jobs" and all the bullshit that our government officials cry about to get re-elected. However, what I do want to point out is that the unemployment rate in our country directly correlates with the value of minimum wage to the dollar. Every year that the minimum wage goes unraised, the unemployment rate decreases. It has gone on like this for decades. But in the upcoming year or years, the minimum wage WILL be increased by the minorty-rights screaming left wing, and just watch the amount of jobs that will have to be cut to counter the forced higher wages.

Beebs · 01-05-2007, 01:10 PM

Correct

DJ FC · 01-05-2007, 01:13 PM

I agree with most of what you say. I don't want the minimum wage raised and yes unemployment is about perfect* right now.

But if you are going to discuss economics in the cause-effect way that you are, do you have a source that shows how strongly the correlation is between the unemployment rate and minimum wage? I'd suspect that the correlation isn't actually as large as you may believe. I'd also suspect that what does correlate much higher is employment levels and inflation. So people may still be able to get jobs if the minimum wage raises, but the increase in wages inflates the money where the increase in minimum wage isn't an increase at all.

*Most economists in the US point to 4.7% as an optimal value for unemployment. This is refered to as the "natural rate of unemployment" where people are naturally in between jobs as jobs are created and destroyed continuously in a healthy economy. Any rate below 4.7% and economists start worrying about inflation... so unemployment that is too low is usually a concern for economists.

Edit: I realized I was a little off-base there.

Yes, raising the minimum wage causes rising unemployment, even though the correlation won't be that strong. Raising the minimum wage hurts those willing to work at the minimum wage (less jobs available), the majority of people won't be directly affected. But where they will be affected is the price of goods. Small price increases at Wal-Mart and fast food chains will lead to price increases in general, hence inflation.

DJ FC · 01-05-2007, 02:14 PM

As I suspected, the correlation isn't very high. I wont test for significance because this is as far as I'm willing to go.

Beebs · 01-05-2007, 03:19 PM

But you can't isolate the two variables, if you could eliminate every single other factor in unemployment, the correlation would be next to perfect. So even if unemployment doesn't raise, it is still higher than it would be given a lower minimum wage.

Heaven Can Wait · 01-05-2007, 07:54 PM

News across the seas is that the pound is owning the dollar

Edit, how would i go about cashing in on this?

DJ FC · 01-05-2007, 08:10 PM

The pound is owning the dollar. I was in London last summer and got raped every time i spent money.

If you think the pound will continue to own the dollar, borrow money in US dollars and convert them to pounds. Invest the pounds. Make payments back in dollars. As the pound appreciates against the dollar, make payments back in dollars, which will now cost less pounds.. and you will have a profit.

Heaven Can Wait · 01-05-2007, 08:17 PM

I predict the pound will fall and the dolla will rise.
qft 2008

DJ FC · 01-05-2007, 09:52 PM

Me too

Beebs · 01-05-2007, 09:52 PM

Other countries money being valued higher than the dollar is not some sort of terrible thing, and I do not understand why people think it is.

DJ FC · 01-05-2007, 09:54 PM

Because I earn US dollars and I like to buy things abroad or that are made abroad, I am not selling abroad, so I want a strong USD.

Beebs · 01-06-2007, 04:32 PM

Agree, just pointing out like most people on here already know that it is not a catastrophy.

Repugnant Abomination · 01-06-2007, 08:20 PM

I'm all for raising the minimum wage. Five bucks an hour or whatever it is is ridiculous. While small busineses may struggle to employ small amounts of people big corporations won't. I'm no economist, but it seems the best solution would to impose a minumum employee minimum wage: Businesses with 10 or more employee's (or whatever number works) would have to raise their minimum wage to 7.50, while businesses with 10 or lesscould keep their wages down to 5.50 or something. Of course then there would be no incentive for anyone to want to work for a small business, but really it seems like those small businesses with like 3 employee's are usually family operated anyway. Most resturants have more than 10 employee's, which is where a lot of young struggling people work. I'm sure this idea has tons of holes in it, but it seems like it could be molded to somehow work eventually.

DJ FC · 01-06-2007, 10:41 PM

The size of the business really doesn't matter. You could make an argument that region could matter, but this doesn't matter again since some areas allready impose minimum wage laws higher than the national minimum wage.

Repug: When you think about it, who is making the minimum wage? I can't think of a single person, but traditionally minimum wage is part time labor. It's not people who have to support a family.

And what happens when you raise the minimum wage? Pure science tells us that less jobs will be offered at the new minimum wage than the old one.... so people who were willing to work at the minimum wage now have a harder time finding that job. Now if I'm not mistaken, the whole concept behind this flawed plan was to help out the poor guy when in effect all we've done is make it harder for him to get a job (and inadvertantly helped out the union guy, but this is another story).

Beebs · 01-07-2007, 01:08 AM

And raised the prices of all the cheap shit he buys, staffed by minimum wage teenagers, although less of them now, so the service this poor stiff is getting is even shittier than before. Why not just kick his dog and rape his mother Repug?

Rapist.

Repugnant Abomination · 01-07-2007, 01:29 AM

I don't deny that.

01-05-2007, 09:38 AM	#1 (permalink)
f3lix Gangnam Style Join Date: Oct 2003 Location: DH's Massage Parlor Posts: 6,383 Internets: 213510	167,000 jobs created last month Normally, I couldn't give a shit about "new jobs" and all the bullshit that our government officials cry about to get re-elected. However, what I do want to point out is that the unemployment rate in our country directly correlates with the value of minimum wage to the dollar. Every year that the minimum wage goes unraised, the unemployment rate decreases. It has gone on like this for decades. But in the upcoming year or years, the minimum wage WILL be increased by the minorty-rights screaming left wing, and just watch the amount of jobs that will have to be cut to counter the forced higher wages.

01-05-2007, 01:13 PM	#3 (permalink)
DJ FC MURICAN Join Date: Jul 2004 Location: Virginia Posts: 5,136 Internets: 253094	I agree with most of what you say. I don't want the minimum wage raised and yes unemployment is about perfect* right now. But if you are going to discuss economics in the cause-effect way that you are, do you have a source that shows how strongly the correlation is between the unemployment rate and minimum wage? I'd suspect that the correlation isn't actually as large as you may believe. I'd also suspect that what does correlate much higher is employment levels and inflation. So people may still be able to get jobs if the minimum wage raises, but the increase in wages inflates the money where the increase in minimum wage isn't an increase at all. *Most economists in the US point to 4.7% as an optimal value for unemployment. This is refered to as the "natural rate of unemployment" where people are naturally in between jobs as jobs are created and destroyed continuously in a healthy economy. Any rate below 4.7% and economists start worrying about inflation... so unemployment that is too low is usually a concern for economists. Edit: I realized I was a little off-base there. Yes, raising the minimum wage causes rising unemployment, even though the correlation won't be that strong. Raising the minimum wage hurts those willing to work at the minimum wage (less jobs available), the majority of people won't be directly affected. But where they will be affected is the price of goods. Small price increases at Wal-Mart and fast food chains will lead to price increases in general, hence inflation.
	The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them. Last edited by DJ FC; 01-05-2007 at 01:24 PM.

01-05-2007, 02:14 PM	#4 (permalink)
DJ FC MURICAN Join Date: Jul 2004 Location: Virginia Posts: 5,136 Internets: 253094	As I suspected, the correlation isn't very high. I wont test for significance because this is as far as I'm willing to go.
	The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them.

01-05-2007, 07:54 PM	#6 (permalink)
Heaven Can Wait English. Join Date: Aug 2005 Location: England Posts: 868 Internets: 179	News across the seas is that the pound is owning the dollar Edit, how would i go about cashing in on this?
	there is little I wouldn't do for a dolphin.

01-05-2007, 08:10 PM	#7 (permalink)
DJ FC MURICAN Join Date: Jul 2004 Location: Virginia Posts: 5,136 Internets: 253094	The pound is owning the dollar. I was in London last summer and got raped every time i spent money. If you think the pound will continue to own the dollar, borrow money in US dollars and convert them to pounds. Invest the pounds. Make payments back in dollars. As the pound appreciates against the dollar, make payments back in dollars, which will now cost less pounds.. and you will have a profit.
	The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them.

01-05-2007, 01:10 PM	#2 (permalink)
Beebs Poor Sport Join Date: Feb 2004 Location: Indianapolis / Middlebury / Long Lake Posts: 5,306 Internets: 127341	Correct

01-05-2007, 03:19 PM	#5 (permalink)
Beebs Poor Sport Join Date: Feb 2004 Location: Indianapolis / Middlebury / Long Lake Posts: 5,306 Internets: 127341	But you can't isolate the two variables, if you could eliminate every single other factor in unemployment, the correlation would be next to perfect. So even if unemployment doesn't raise, it is still higher than it would be given a lower minimum wage.

01-05-2007, 08:17 PM	#8 (permalink)
Heaven Can Wait English. Join Date: Aug 2005 Location: England Posts: 868 Internets: 179	I predict the pound will fall and the dolla will rise. qft 2008
	there is little I wouldn't do for a dolphin.

01-05-2007, 09:52 PM	#9 (permalink)
DJ FC MURICAN Join Date: Jul 2004 Location: Virginia Posts: 5,136 Internets: 253094	Me too
	The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them.

01-05-2007, 09:52 PM	#10 (permalink)
Beebs Poor Sport Join Date: Feb 2004 Location: Indianapolis / Middlebury / Long Lake Posts: 5,306 Internets: 127341	Other countries money being valued higher than the dollar is not some sort of terrible thing, and I do not understand why people think it is.

01-05-2007, 09:54 PM	#11 (permalink)
DJ FC MURICAN Join Date: Jul 2004 Location: Virginia Posts: 5,136 Internets: 253094	Because I earn US dollars and I like to buy things abroad or that are made abroad, I am not selling abroad, so I want a strong USD.
	The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them.

01-06-2007, 04:32 PM	#12 (permalink)
Beebs Poor Sport Join Date: Feb 2004 Location: Indianapolis / Middlebury / Long Lake Posts: 5,306 Internets: 127341	Agree, just pointing out like most people on here already know that it is not a catastrophy.

01-06-2007, 08:20 PM	#13 (permalink)
Repugnant Abomination Almost there... Join Date: Feb 2005 Posts: 5,979 Internets: 164547	I'm all for raising the minimum wage. Five bucks an hour or whatever it is is ridiculous. While small busineses may struggle to employ small amounts of people big corporations won't. I'm no economist, but it seems the best solution would to impose a minumum employee minimum wage: Businesses with 10 or more employee's (or whatever number works) would have to raise their minimum wage to 7.50, while businesses with 10 or lesscould keep their wages down to 5.50 or something. Of course then there would be no incentive for anyone to want to work for a small business, but really it seems like those small businesses with like 3 employee's are usually family operated anyway. Most resturants have more than 10 employee's, which is where a lot of young struggling people work. I'm sure this idea has tons of holes in it, but it seems like it could be molded to somehow work eventually.
	Last edited by Repugnant Abomination; 01-06-2007 at 08:21 PM.

01-06-2007, 10:41 PM	#14 (permalink)
DJ FC MURICAN Join Date: Jul 2004 Location: Virginia Posts: 5,136 Internets: 253094	The size of the business really doesn't matter. You could make an argument that region could matter, but this doesn't matter again since some areas allready impose minimum wage laws higher than the national minimum wage. Repug: When you think about it, who is making the minimum wage? I can't think of a single person, but traditionally minimum wage is part time labor. It's not people who have to support a family. And what happens when you raise the minimum wage? Pure science tells us that less jobs will be offered at the new minimum wage than the old one.... so people who were willing to work at the minimum wage now have a harder time finding that job. Now if I'm not mistaken, the whole concept behind this flawed plan was to help out the poor guy when in effect all we've done is make it harder for him to get a job (and inadvertantly helped out the union guy, but this is another story).
	The basis of our governments being the opinion of the people, the very first object should be to keep that right; and were it left to me to decide whether we should have a government without newspapers, or newspapers without a government, I should not hesitate a moment to prefer the latter. But I should mean that every man should receive those papers and be capable of reading them.

01-07-2007, 01:08 AM	#15 (permalink)
Beebs Poor Sport Join Date: Feb 2004 Location: Indianapolis / Middlebury / Long Lake Posts: 5,306 Internets: 127341	And raised the prices of all the cheap shit he buys, staffed by minimum wage teenagers, although less of them now, so the service this poor stiff is getting is even shittier than before. Why not just kick his dog and rape his mother Repug? Rapist.

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