Why is America's Minimum Wage So Low - TLDR News

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Recently the debate about minimum wage has emerged in the US once again, with Biden wanting to see the wage rise to $15 an hour (more than doubling the current rate). So in this video, we discuss this debate as well as why America's minimum wage is lower than other countries around the world.
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[@GTNTAnimations]

I am 100% interested in the tipping video

[@trevorgolnick5066]

I would love to see a tipping video. I hate tipping culture so much.

[@bendyson9386]

It’s just an excuse to not properly pay staff and put the blame on the customers

[@kiranalexander8846]

This would be super cool! In the mean time tho, Evan Edinger did a good video about tipping, why it is such a thing and the worrying thing that they don’t even actually have to be paid the minimum wage.

[@abdullahrizwan592]

Same here, I can't wait for that video!

[@vikmanphotography7984]

Short teaser- most wait staff is actually paid much less than the minimum wage prior to tips. My sister works at restaurants and her 'wage' had been between $3.75 and $5.25 pre-tips

[@S00PASTA]

Would love a video about tipping in America and how it's a totally broken system.

[@srhfitzpatrick]

It should also mention the racist origins of tipping in the US because like many American concepts, racism was involved.

[@Steve-zc9ht]

@@srhfitzpatrick what??? Are you serious

[@Steve-zc9ht]

@Ryan ok but that's not the case now is it lmao 😂

[@serraelakha2758]

Sure, but that's what "origins" means. Just because it evolved to become "employers got permission to essentially subsidize their employees' paychecks with tips, regardless of if the employee is white or not" doesn't mean it didn't start with that.

[@juliewake4585]

It’s a sort of charity, “a cold grey loveless thing”:

[@nomadMik]

I've lived in the US for 20 years, and I still find the tipping system confusing and ridiculous. Why tip wait staff, hairdressers and massage therapists, but not automotive mechanics, shoemakers and sex workers? Why don't employers just pay workers a living wage, instead of burdening customers? It's not just 'different', it's a flawed system.

[@thimization]

...you literally ONLY tip strippers.

[@appleslover]

@@thimization and you

[@cshairydude]

I'd be surprised if sex workers didn't get tips, though. And I doubt the minimum wage is relevant to them since their job is (almost everywhere) illegal to start with.

[@tudorjason]

A rule of thumb for tipping: Double the tax. Ignore the percentages and stick to a rule you can live with in every tipping situation. Usually, doubling the tax works.

[@zacharywindover9840]

@@thimization I think you need to search up what a sex worker is. A sex worker isn’t just a stripper in a strip club giving dances on stage for tips.

[@nert-13]

FYI even Americans, mostly in urban, less community-oriented areas, hate tipping culture, especially since it is so arbitrary. In major metro areas, 70% of people view tipping negatively, and 57% would be in favor of restaurants banning it and just raising prices, or even just adding a 20% service fee to your meal

[@moefag]

As an european I feel like american businesses can't do their accounting correctly and ask their clients to do the job for them x)

[@goosenuggets9693]

@@moefag Europeans tend to be insecure about American hegemony and make up nonsense stereotypes to feel better about their position on the global stage.

[@nert-13]

@norm simpson exactly. It is so guilt inducing and honestly unfair for all parties involved except restaurant owners. What other industry does this?

[@brokenrecord3095]

@norm simpson Except you don't know exactly what goes into their pocket. Most servers are "expected" to share a portion of their tips with the bar staff, bussing staff, etc. Failure for them to pony up enough cash means, well, maybe their tables don't get bussed as fast as the next server's, which affects their own earning potential. Also (at least when I was a waiter) taxes were withheld on a percentage of sales - meaning you are being taxed on the assumption that people are tipping X percent. Which means that if you think that nice crisp $5 bill you left for Suzy ends up directly in her pocket, you are most likely mistaken.

[@moefag]

@norm simpson that's interresting. I still feel that it's wrong but maybe it's only a cultural thing

[@jefferybrown6473]

FYI, the Senate Parliamentarian, is an advisory and has been repeatedly fired and ignored in the past. 2001 Bush Tax Cuts 1991 Welfare reform For examples

[@benbookworm]

And I believe that changing Senate rules only takes a majority anyway, so if they have enough votes to pass the bill, then they have enough votes to do it period.

[@felipefilipino9318]

The American Rescue Plan wouldn't have passed if it included 15$ minimum wage though, so i actually think it was good.

[@SammiScoop_1]

Also the VP says if something can go though reconciliation not the parliamentarian. The parliamentarian has no power at all. They only advice the president.

[@johnny_eth]

@@felipefilipino9318 yes it would.

[@askarlatos]

Please do the tipping video! As a US viewer I believe tipping shouldn't be necessary but under the current system you have to tip when you go to a restaurant. California has already raised tipped worker minimum wage and it showed a positive improvement

[@simmerke1111]

Would love a video on it. Also wonder what would happen if everyone just stopped tipping, wouldn't they have to increase the wage?

[@askarlatos]

@@simmerke1111 possibly but in the interim servers would make only $2 an hour and things don't change quick I'm the states haha

[@llydrsn]

@@simmerke1111 but the problem there would be the servers who will be caught at a low pay below the minimum and without any other sources to augment it.

[@staticdave]

I don't go to restaurants in the US. I'm already paying for a meal PLUS I'm expected to pay someone's employees wages on top of that? Hard pass.

[@askarlatos]

@norm simpson yes sir, and if you don't tip at least 20% that's bad.

[@Ellipsis115]

Pointing at other countries like the U.K. Isn't even a fair comparison given how much more basic needs you get, can you even pay a serious medical bill after a couple years minimum wage in the U.S.? Possibly not. There is also the small matter of some countries not wanting or needing a minimum wage due to unions filling that role.

[@thorstenfinke2751]

Your union point is interesting. If i recall correctly this argument was used in germany a lot. We did not have any minimum wage since fairly recently. Many people who were against the implementation of a minimum wage used this argument. But even thou unions are still strong in the old industries (car, metalworking, mining, etc.) they are in a constant slow decline and they where unable to be effective for other and newer economic areas like gig economy or even housekeeping, cleaning or hotel staff. In the end the minimum wage in germany is fairly undisputed today.

[@Andy-em8xt]

The overall cost of living is lower in America than in the UK. Healthcare is the only thing more expensive. But food, housing, clothes are all cheaper

[@jokuvaan5175]

In Finland for example the labor unions regularly negotiate with the employer unions of minimum wages and other workers' rights for their respective fields with government representitives usually acting only as intermediators.

[@random_channel7376]

yh I live in the UK and have had 4 x-rays in my life and in the US that could cost thousands each time, so it could've cost my family $4-8,000 !!!!

[@RK-bj8ho]

Why American complain abt health care, what is medicare program supposed to be , does it not help?

[@jonathandevries2828]

I used to be a tipped employee delivery driver but with the advent of food delivery apps and their fees tipping has decreased. The take home pay kept getting less and less from an average of 100$/night to when i quit an average of 45/night. i suspect customers see the total for the food then dont want to pay $10-12 on top of that and so they save money where the amount is not mandatory: tips.

[@theoldfinalchapters8319]

Why on earth would you tip for services not yet rendered? You pay the bill, and then the food is delivered. On top of that, tipping is absurd to begin with. If an employee in any other industry was underperforming/overperforming, they'd be promoted/fired accordingly.

[@jonathandevries2828]

@@theoldfinalchapters8319 true with underperforming not really with overperforming...i know its so weird...when i started delivery 12 years ago there was no delivery websites...then came campusfood but no way to tip ....then tipping before the food was delivered happened and we were all like no ones gunna ever do that but now its common place....

[@theoldfinalchapters8319]

@@jonathandevries2828 It's just a dummy tax. "We can charge everyone less (but won't) if some people are dumb enough to give us money for free!"

[@chris7263]

@@jonathandevries2828 I know that I have sometimes found it difficult or confusing how to tip, with various sigital systems. And I always try though, and tipping the THE reasion why I still carry some cash. TheOldFinalChapters might not care about this sort of thing, but having never earned more than $17/hr myself, I consider tipping to be Low-Wage-Worker-Solidarity.

[@Temo990]

@@chris7263 I am asking myself if there is any other country than the U.S. to consider tips mandatory. At least in my country in the EU tips are not considered mandatory. It is still possible to tip but than it is just for appreciating a good service. Tips are rather uncommon in fast food restaurants and more common in places with higher standards.

[@BMXaster]

Would have loved a graph with minimum wage, inflation, AND cost of living adjusted

[@schneiderbrunker4074]

35% Americans have nothing saved for retirement. over 50% have less than $20k saved

[@dwaynerodger9066]

the economy makes us believe that the middle class is filled up with people who look like they are doing well not doing they accrue debts in future, and we continue to vote for politicians that are against raising minimum wage, is just plain stupid.

[@sallymclam4455]

what a furlough crap they don't care about shareholders, they care about manipulation of stock values in a short term to cash out before crashing and then getting their golden parachutes. crypto is the future of finance I'm on the road to $100k please any pointer?

[@michaelwalter3725]

@@dwaynerodger9066 If you choose a state which has natural job growth to begin with, raising the minimum wage may slow that job growth, rather than creating job loss. It's a spectrum. So I'd say the conclusion you've drawn from that study is perhaps influenced by confirmation bias.

[@jerrydavis5518]

@@sallymclam4455 I'm quit familiar wit Kathleen Diane Hayden i suggest mk your research abt her using her full name and drop words on her main page. as a moonboy, Btc is the future of finance whether it goes up or down I’m just going to leave it there till 2029 than use it as a house deposit or a cheap dinner.

[@jamesvw769]

Your numbers are wrong 70% of Us live paycheck to paycheck and have less then 1000.00 saved and nothing for an emergency.

[@govindraman3189]

It should be adjusted to the Cost of Living of each state/city.

[@zzzanon]

Yes, the states should decide for themselves, this is better than applying it at the federal level. And this way, if it turns out to have negative consequences, the states can change them much more easily. People in each state should control their own minimum wage, rather than the federal government trying to make a one-size-fits all approach. If Mississippi wants no minimum wage, let them try it out. If New York wants $100/hr minimum wage, let them try it out and see what happens.

[@govindraman3189]

@@zzzanon Yeah, thats why I like giving the states/cities more power, because they can just experiment, and if they do something terribly, the whole country doesn't get destroyed.

[@jamesvincent1567]

Minimum wage harms poor people more than it helps them

[@andredunbar3773]

@@zzzanon The problem with letting states decide their minimum wages comes from some politicians with no incentive to care about the people they're supposed to represent deciding that businesses should be allowed to let their workers starve. What happens then?

[@zzzanon]

@@andredunbar3773 , with food stamps, SNAP, food banks, and charity, people are not starving. So that is an incorrect description. We are one of the more overweight countries, wouldn't you agree? If people in a state/municipality are unhappy with their state/local government / minimum wage, then then they can vote them out. But if they cannot vote them out because the plurality of people in the state approve of that politician/minimum wage, then there is no reason for that politician to leave. Democracy. I imagine that you agree so far, yes? You wouldn't want a small minority of people to be able to override the votes of the majority of people, would you? You wouldn't want ME to force my rules onto YOU. If you are in a state/municipality where the other voters like the government / minimum wage, but you don't, then you should move to a different state/municipality where you would be happier in. This maximizes the happiness of everyone because you are where you're happy, and the people in the state still have a working democracy (the plurality from before still control their own rules/destiny). And if it (minimum wage or whatever topic you care about) is a good idea, then other states have a strong incentive to copy it, because politicians need to keep the largest group of people happy in order to keep their job. If it is a bad idea (or there is a better alternative), then that bad idea is not being FORCED onto other people/states, people that disagree can move to a different state, and it is easier to change at the state level to change it (in contrast to the federal level). EDIT: In short, different people (dems, reps, libertarians, others) want different things. WE DISAGREE WITH EACHOTHER SOMETIMES. Putting rules at the federal level forces the same rules onto everyone, thus some (MANY) will be unhappy (it's much less difficult to move to a neighboring state than to move to a different country). Let the states decide their own destiny, so people can move to where they are most happy, and this way we can all live in the same country happily without hating eachother. Lets be friendly neighbors rather than unfriendly roomates! :)

[@DaDunge]

Because America's unions was neutered long ago.

[@luis06211986]

Even when unions were at thier height they did not cover many people then as well

[@rahcollier7006]

Except police unions.

[@DaDunge]

@@rahcollier7006 I wouldn't mind those if they were protecting police's rights to good pay rather than to gun down people.

[@kimwit1307]

let me guess, they were too socialist-like?

[@luisoviedo-perez2896]

@@kimwit1307 No. Unions have a mixed history here and at their height Unions really did not have much influence to begin with. I can tell you with some of my experiences with unions I know I would never belong to one if I was here.

[@csmain]

I need to put correction in your video that the senate parliamentarian has no power to uphold any ruling. The fact that the one who has the final say on what is allowed on the budget is the vice president. She determines what can be put onto the bill. You might say that this right or fair but you look at history of congress its very common to reject the ruling of the senate parliamentarian. Like tax cuts that the republicans proposed when the senate parliamentarian reject it.

[@evannibbe9375]

It is useful for making sure the Democrats don’t lose to Republicans in West Virginia (via forcing Joe Manchin to go on the record voting against it).

[@ChrispyNut]

Thank you for saving me the effort of typing this correction.

[@GhostEmblem]

@@evannibbe9375 Joe manchin is worse for the democrats than a republican because he ends up costing seats that aren't his whilst he stays safe to sabotage more dems and is never challenged.

[@cshairydude]

Surely the one with the authority is the president of the Senate, which is constitutionally the VP but in practice the president pro tem. Or is the VP more active in the Senate than I thought?

[@cshairydude]

@Jonathan Banner As I said, she's president of the Senate, but she has many other duties that take up her time so she usually delegates to the president pro tem. She can step in if she really wants, but usually won't.

[@smokey267]

If you're in business, you'll know that you have to regularly and gradually increase your prices. If you keep prices low for too long you'll eventually need to increase them suddenly and substantially, or go bust. Problem with the sudden method is that you will almost certainly lose customers. It's pretty stupid how the US doesn't gradually increase the minimum wage.

[@smokey267]

@@harmonicarchipelgo9351changed out living to minimum.

[@Ozvideo1959]

Just a correction, the minimum wage in Australia is 19.81 Australian dollars per hour or $15.40 US dollars per hour.

[@VictorECaplon]

My only issue with the thumbnail is that the EU minimum wage that is not right. The minimum wage of some member states, as shown in your video, can be much lower.

[@darkyada71]

Jack mixed Luxembourg with Europe lmao

[@simmerke1111]

Yeah, some are much lower, some are higher. Lots of EU members also have mandatory extra pay for risks, heavy physical labor, working in shifts,... So minimum wage alone isn't everything to go by. For example, when I got off secondary school I took a low paying job on paper. But eventually it added up to €14/hr after tax. Which might sound little to US citizens, but I saved nearly half of it while living comfortably.

[@coreymcmahon7312]

Also recall that there are no minimum wage jobs in the US that offer health insurance. If you are above the poverty line and your employer doesn't offer insurance, you're paying for that on your own. Most go without and then go bankrupt when they have a medical emergency.

[@shanehull6235]

U.k is actually £3.50 since that is minimum wage for apprenticeships £7.25 The age bias always bothered me too you don’t actually get to see a real minimum wage until you’re 25

[@coreymcmahon7312]

@@shanehull623525 seems a bit arbitrary... what's the reasoning behind this?

[@tyjjer]

Concerning the $2.13 p hour tip wage. While correct that the difference to $7.25 is expected to be made up (and likely exceeded) by tips, if they don't then it's on the employer to pay they employees the difference. While this doesn't happen often, it's still a thing. Also I see that some are mentioning that tips aren't taxed. This is incorrect. All income, be it wages from the employer or tips (cash or card) are required to be reported as income and taxed accordingly. Years ago, when cash was used more often, tipped employees would cheat on their taxes and claim less income than they actually received, but now that the U.S. is overwhelmingly becoming a cashless society, it is much more difficult to "hide" tips. This, in some ways, means that tipped employees today have even less purchasing power that even a decade ago, even though the minimum wage hasn't increased since 2009.

[@themanwiththeplan1401]

Employers are supposed to make up the difference, but a lot don't.

[@angelm9635]

@@themanwiththeplan1401 they do the thing people don't realize is that its min wage across the pay period not per day, so if you make $300 on the weekend and $20 weeknights it averages out that they don't have to pay you for the slave days.

[@timmmahhhh]

Tips didn't used to be taxed but Saint Ronnie Raygun changed that.

[@Temo990]

Do employees in the U.S have to pay the income taxes by themselves? In my country the employer is forced to directly transfer the income tax in addition to social security payments to the authorities. So not every employee must manually pay their income tax. This obviously creates a problem for the employer if he would try to use tips as loan replacement. Because than he definetly should keep track of the tips to tax it properly. And of course nowadays with the minimum wage it becomes even more difficult.

[@timmmahhhh]

@@Temo990 In most cases yes the employer takes out taxes from the employee's paycheck (W2). Contract employees (IRS form 1099), no but if the employer controls the workplace and the hours one cannot legally be considered a contract employee. That doesn't stop some people of course.

[@JamesRoyceDawson]

The minimum wage was conceived as being the amount of money a man would need to support a household if he worked full time. That is absolutely impossible now and is barely even feasible with both parents working full time. With all these conservatives supposedly caring about "traditional families", they should support setting a high minimum wage to facilitate them.

[@shm6ney]

It’s minimum wage for a reason, get in the work field and work you way up. It’s not hard I see people move on to better jobs all the time. Stop crying, we’re in a much better situation then a majority of countries

[@JamesRoyceDawson]

@@shm6neythe cold hard fact is that a huge amount of the people living on minimum wage have families to support. Either they've changed careers or just didn't manage to work their way up a ladder. That certainty of moving up just isn't there anymore and maybe never was. If someone works 40 hours a week, they should be able to manage at least supporting one other person

[@ralfrodriguez8885]

@@shm6ney the video says developed countries. So ,no we are not better than other developed countries. You are right about it's entry level and you need ambition to seek higher pay job and responsibilities.

[@luisenriqueperezperez3193]

@@shm6ney Why is America’s answer to every problem “stop crying” or something relate d? Like what is the problem of wanting a better more comfortable life?

[@JamesHardaker]

@@shm6ney you would struggle to work your way up as a typist.

[@Lemonz1989]

No minimum wage in Denmark, and I get paid ~$20/hour for a student cleaning job. The reason? We have union negotiations between employer unions and employee unions.

[@magicalkoala]

I'm from Australia and can't believe how outdated this minimum wage is in the USA. It's a no brainer to tie it to inflation. If a business can't afford to pay a living wage, then its probably not doing well... and raises the question whether it should eveb be in business?

[@ishrod_tweaks]

Minimum wage in Spain is currently 8.85 USD. We've got a rise last year 😂.

[@coreymcmahon7312]

Two words: Health Insurance. Congratulations on the wage increase though!

[@LordDark102]

Try $5 in Poland.

[@coreymcmahon7312]

@@LordDark102 I asked this elsewhere, but is unionization strong in Poland?

[@LordDark102]

@@coreymcmahon7312 Not really about 10% unionization rate but since Solidarność is thought to overcame communism it is highly thougght of in political sphere. Moreover everything is heavily nationaly regulated so employers and employees negotiate minimum wage everyear which then governmnet either implements or when there is no consensus they change it on their own (usually with benefit to the employees)

[@coreymcmahon7312]

@@LordDark102 That's actually a rather interesting methodology... I suppose economic development and relative cost of living are what keeps it relatively low?

[@Dear_Mr._Isaiah_Deringer]

The _“ 🇪🇺 14.14”_ is really misleading.

[@iam.damian]

True, when I lived in Slovakia, an EU country, it used to be 2,5 € an hour, and as a high school student I obviously didn't get more than a minimal wage. Now it is 3,58 € :D Luckily I study in Denmark now, and I can support myself while also studying :) And, no student debt. So if I get a job in the field during studies, I might graduate with some savings :D

[@kacpergalik609]

It made me laugh honestly.

[@zdeneknovak5276]

yeah, even the 7 USD is double that the minimum wage in CZECH republic. Although it is almost the average so...

[@johannesmajamaki2626]

And here in Finland we have none at all, instead leaving it up to sectoral agreements struck between the workers and employers unions.

[@corpclarke]

@@iam.damian So you can support yourself more easily in a country with no statutory minimum wage? Interesting. It undermines the point the video was making about minimum wages needing to be sufficient to live off.

[@v-xup6]

tipping culture is just terrible, tips should be used to encourage service staff to provide better service, not so the establishment/owner can spend less. In Taiwan, a while back some establishments introduced a 10% mandatory "tip", but the "tip" never went to the service staff, in recent years they've changed it to "service fee" instead of "tips", but still doesn't go to the service staff. Min wage should be set so that the employee can cover all basic living necessities in the area they're working in. You make more, spend more, establishment makes more. Simple logic.

[@Cpre1111]

I'm an American & I hate tipping. I don't agree with it. Most of these restaurants are chains that earn billions of dollars & yet their employees are making $2.50/hr. Foh. I pay a min. $30 bill if I'm lucky to these restaurants. You mean to tell me I have to pay THEIR employees, too. And the service often isn't great. It's a ridiculous, outdated practice that no other industry really does & it needs to change.

[@liamdouglas2720]

It’s ironic that the largest economy in the world can’t pay their workers a living wage

[@ten_tego_teges]

Only on the surface, GDP is in fact unrelated to well-being. It doesn't matter how much you produce, but who benefits from all the production. What share of America's GDP is armaments, exclusive housing and a plethora of extremely expensive services? In an economy of slave labour you can report huge GDP figures, but have most people live in abject poverty.

[@CharlesMutTracy]

@@ten_tego_teges yes but on a per capita perspective we are extremely high, way higher than most of the countries on the graph, so if each individual produces that much, it would make sense for those individuals to earn more. For example, if we were to tie our minimum wage with productivity, it would be around $24. I don't believe in a $24 minimum wage, but I do definitely believe that our current minimum wage needs to be increased.

[@ten_tego_teges]

@@CharlesMutTracy Yes, "it would make sense", but in reality that's an assumption that doesn't need to hold true. Minimum wage it one of the tools to strengthen the GDP vs. well-being correlation and I agree with raising it. However, GDP is fairly outdated and never meant to be used as a well-being indicator. That was the intention of my previous post.

[@jdavis7993]

Won't.

[@LittleJohnFish]

.... Yeah and China is the second largest economy so what does that say...

[@vikmanphotography7984]

Most tipped staff is paid well below minimum wage btw. My sister has waited tables for a few years now at different restaurants and her wage had been between $3.75 and $5.25 per hour. With tips though, she's made everything from $3.75 to $40 an hour before with the average probably around $13 and lower during the pandemic due to no table service. Such wage unpredictability would drive most people nuts

[@Diaming787]

I would really like to see minimum wage keep increasing based on inflation incrementally. I don't know why this is that hard.

[@keiichi960]

Because every time you raise min wage you are at the same time causing a raise in inflation.

[@redwolfexr]

@@keiichi960 er, no. You tail is not wagging the dog. Inflation happens regardless of MW... all the proof you need is that we HAVE had inflation the last decade and NO increase in MW. I have said for years that we needed to set a wage-equivalent around $10-12 and set it to adjust for inflation.

[@keiichi960]

@@redwolfexr er, Yes. Inflation occurs because of population growth (has been 2-3%). A MW increase will add to that inflation. (We are already at 4.6% and still climbing).

[@scottfowler3405]

@@redwolfexr keep in mind the whole system is so you actually dont be a bum for your whole life like why should a fast food worker make near the same amount as a fucking apprentice electrician? they shouldnt at all and it ridiculous that people think you should want to stay at shit jobs theyre meant to be shit people you shouldnt wanna work in fast food for your whole life lmao losers are stupid people

[@scottfowler3405]

@@redwolfexr and for the record inflation goes up by this 1. the amount of people living legally/illegally in a country and 2. by how much money is being handed out for each individual. so raising minimum wage for more inflation causes a spike in inflation which is bad and yeah small incrimates is fine but all you're doing is hurting people who already make$10-$12 an hour so should they suffer for idiots who cant get a better job because theyre too fucking dumb? no

[@isaach.1135]

Additional note on tipping, this really only applies to the service industry where face to face interaction with customers is expected. Restaurant waiters, hair stylists, barista, bartenders, and even mechanics to some degree can generally receive tips. But this does not apply to areas such as fast food chains, mail delivery, cashiers, etc. It does cover a wide range but mostly specifically to the service industry.

[@asianati8879]

Tie it to inflation, average wages, and economic commission. I’m tired to see politicians using people’s livelihoods as a political tool.

[@menotyou4289]

I know right? The easiest way to solve a math problem is once, recursively. If minimum wage is defined recursively, then you can only argue about a new rate for the next year from which it grows again. Too high or too low is bad, of course, but either way a gradual change (say, a few cents a year!) makes for an easier transition.

[@MaoRatto]

So am I.

[@tretolien1195]

It would certainly be better than having democratic terms unilaterally increase it in large spikes every few years but I don't think the enlightened technocracy is the solution. An industry derived solution like what we have in Denmark & Sweden is much superior as it allows the partners: companies, individuals and their supporting unions, to freely agree to often much higher and more industry-specific wages. This system is much more adaptable to local prices (e.g. NYC Walmart workers will need a higher minimum than the average town in Alabama), allows for People seeking paid internships etc. This is part of the reason Scandinavia resists the EU's draconian continental minimum wage plans. Even if such a system is not implementable in the U.S. it would * arguably * still be better to abolish the federal minimum in favour of Local/state minimums. But ofc such statements are probably quite worthy of dispute...

[@dinamosflams]

@@menotyou4289 but what about their Power? They want that juicy juicy Power really badly

[@lenno15697]

No economic commission. Inherently political decisions must be decided by an elected body, not a bunch of unelected bureaucrats.

[@mitchellsharp1456]

"Now this doesn't mean that we're right and you're wrong." As a person who has lived in the USA my entire life, if America does something differently from the rest of the world, it is definitely doing that something wrong.

[@Therealromario1]

Telling Americans that they are wrong, usually ends up in a dumb shouting competition and the American telling you "we landed somebody on the moon" and invented the internet USA №1. !!!!

[@joelkirkwood8224]

Why are we still not using the metric system?

[@rl751]

Funny how that never applies to mentioning that the U.S is the only country to afford & maintain 700+ overseas military bases from the rest of the world, but can’t and won’t raise the minimum. It’s been well over a decade and the LONGEST we’ve gone without a raise to the federal wage. A society is only has good as the people on the lowest rungs and the U.S seems hellbent on bring the standard of living for the lower classes to the 3rd world country level.

[@mvnkycheez]

@@Therealromario1 Ironically Americans may have invented the internet but they didn't invent the World Wide Web, which is the majority of how the internet is used haha

[@lenno15697]

No. There's a reason why standards of living in America is higher than *almost* every nation in Western Europe (Switzerland and a couple others being the exception).

[@jascrandom9855]

Something that needs to be done is to reduce the cost of living. Eliminate Zoning laws like Height Restrictions, Parking lot Requirements and Single Family Housing Zones. -The increase in housing supply will reduce people's living costs. -There will be an increase in construction, which will increase the number of jobs, which will increase overall wages. -The combination of higher wages and lower housing costs will leave people with much more money to spend on the rest of the economy. -It will reduce inequality. These Zoning laws serve to syphon money out of low and middle income people into the pockets of landowners who are usually of the upper class or corporate.

[@victording6698]

Countries with less zoning restrictions don’t necessarily have cheaper housing price, e.g. Australia. In fact, housing is much more expensive in Australia than in the US.

[@jascrandom9855]

@@victording6698 I don't know about Australia's zoning laws (these are usually local rather than national), but they do have them. Australia's problem is that legislation there is geared to making real estate into speculative investment rather than stimulating construction. And population growth.

[@fernandomaluenda4226]

I was thinking about something similar the other day. What would you think about the federal government banning owning several properties? I learned the other day that this country in South Asia, Indonesia or something, didn't allow citizens to purchase real state as a way of investing. In other words, housing was seen as housing, not investments. Do you think that would be a good solution to the housing problem? I'm inclined to think that increasing housing supply would indeed lower prices, but only momentarily for people to "invest" by buying it instead of people trying to purchase their first home.

[@lenno15697]

Preach!

[@lenno15697]

​@@fernandomaluenda4226 But people (or corporations) that invest in other homes don't just have them sit there empty (otherwise they would be losing money). They rent them out to tenants. This whole "housing as investment" schtick is a red-herring. High housing prices have always been a combination of 1. More people want to live in high-demand places/cities. 2. US school district system. 3. Zoning and red-tape that prevents new housing being built.

[@siri7005]

What a lot of studies mistakenly or purposefully ignore when they say that minimum wage increases cost jobs is that when poor people get more money, they spend it on things they need. When poor people start buying more things it creates an increase in demand which means companies get more money and are incentivised to expand. Some sectors may lose jobs but others will gain them as people are finally able to afford necessities. Giving money to poor people just puts the money back into the system, giving money to rich people does jack shit because they already have everything they need.

[@wongalex9457]

usa spending 75% on welfare every year. That is not the rich people false. It is the voter false because the government can decrease 75% taxes if they can't vote.

[@wongalex9457]

@Razer Von agree but the majority have to paid for it. We can't print everything we want and need.

[@iamthere135]

@@wongalex9457 the vast vast majority of taxes are paid by the top 5% of US citizens

[@hitchhikersguidetohappines8000]

For the love of god, PLEASE do a video on the tipping expectations in the United States. Popularized during the Great Depression, its been a speed bump in our economy ever since.

[@Ramschat]

Job loss? Last I checked we were in a labour shortage!

[@Alexander-xn8vz]

Another push against a federal minimum is that 15 an hour is MUCH different in Alabama than it is in DC or Cali. Also Cali and New York are already raising to 15 over time, not just DC

[@chris7263]

Yeah, this is one argument I can kind of partly sympathize with. When I lived in Seattle from 2012-2019, 15$ and hour was really very literally minumum, I had to work 50+ hours a week to afford renting a single room, no bathroom or kitchen, a hour communte away. But where I'm living now my rent is half that, and that same $15 would stretch way farther. On the other hand, leaving it up to the states assumes that these differences vary by state, when really it's much more fine-grained than that and can come down to individual cities. But when you raise the wage in the city, then the factory might just decide to relocate a suburb away--which I expect was part of why all the factory jobs were in Federeal Way WA.

[@matejlieskovsky9625]

Yeah, I agree with that. $15/hr nation-wide would be a huge spike. But: 1) States should be way more active in increasing their minimum wage (or looking for other solutions) 2) $7.25/hr is way too low

[@TheAnalyticalEngine]

Really, each state should have its own independent commission to assess how much the state minimum wage should be, based on inflation, average wages and cost of living Meanwhile, the federal government should have its own commission to make sure that these state commissions are doing their jobs properly, with leeway to adjust minimum wage rules on a federal basis where needed But there should still be _a_ federal minimum wage, to act as a baseline

[@kirkrotger9208]

Except there is not a single state in the US in which $15 an hour is a living wage for anything but two people with no kids, and even then it's very close. In NYC and SF a living wage is closer to $25.

[@chris7263]

@@kirkrotger9208 who has kids anymore? That was a boomer luxury, like owning a home and having health insurance.

[@patrickjspoon]

The saddest part is that the US standard for the poverty line is obscenely low.

[@lenno15697]

This is actually completely false. Relative poverty is defined as people living in less than half the median disposable income. But American median income (and median disposable income) is actually *much* higher than almost all Western European countries, making the standard for poverty line much higher too!

[@thunder7650]

Short answer: Senators like Joe Manchin

[@KamKing19]

The Senators who voted for it represent more people than those that voted against it.

[@frederikjrgensen252]

@@KamKing19 well the point you are making is really. Bad states should have a say in what their wage is. If the states who voted yes really want an increase. Then they can do it at state level.

[@KamKing19]

@@frederikjrgensen252 They do have a say. The Fed just creates a floor to keep people out of deep poverty. And why are we more worried about the states than the people?

[@frederikjrgensen252]

@@KamKing19 well then do not use bullshit argument about the senate they should have a say in it

[@luis06211986]

Nah. Joe Manchin and the kind of senator use to be the norm and just how liberals condem republicans for only following political parties arguments, liberals do not like it when thier elected officials do not follow the party policy either. That is why you don't like Joe.

[@jonathandevries2828]

I hate the tipping culture here....it shouldn't be the customer's responsibility to pay the worker's salary or keep the workers motivated. I wish i could just settle up at a restaurant like i do at a convenience store or drive through.

[@cynthiakazmierzski8144]

People who make tips in restaurants earn far more than those at convenience stores and drive-throughs. If you don't want to add 20% to your bill to ensure the people who cook and serve you are paid properly, then stay home and cook your own damn food.

[@shroomyesc]

@@cynthiakazmierzski8144 People should tip while restaurant employees aren't paid a full wage, sure but it shouldn't be the customer's responsibility to add 20% in the first place when the business owner should be paying the salaries.

[@jonathandevries2828]

@@cynthiakazmierzski8144 Oh Cyndy you misunderstood...i do always tip generously (usually 25-30%) as i've been a tipped employee in the past...the point i was making was why should I, the customer, have to think about how well the cook and wait staff are paid? It'd be a more pleasant experience if i didn't have to think about how these wonderful people make far less than they should.

[@theoldfinalchapters8319]

@@cynthiakazmierzski8144 Apply that logic to literally any other job to see how absurd it is. "Generate your own electrity if you won't tip the electrician" "Drill your own oil if you won't tip the people at the gas station" "Make your own video game if you won't tip the developers" Also, how are you supposed to get food without tipping the person selling it?

[@cynthiakazmierzski8144]

@@theoldfinalchapters8319 Electricians and developers aren't poorly paid in places without a tipping culture and most people don't have the skills to develop software or rewire their homes, so your comparisons are useless.

[@nonmelodic1114]

Each state in the US has economies comparable to individual countries and there's massive differences in the cost of living. Minimum wage should be a state level discussion as setting a high federal minimum wage could have a serious impact on lower cost of living states or states that focus on manufacturing/ agriculture.

[@Pan_Z]

This is a more accurate and succinct description than this 11-minute video and the entire left-wing circle jerk of a comments' section.

[@itsjacob7239]

Expecting tips sure is f'ing dumb. Why isn't it in the bill if it's expected?

[@FlightNinja8]

Because it's based on merit! Western Europe has notoriously bad service because servers will be payed the same regardless of how friendly, fast and efficient they are. Compare that to the truly impeccable service in the US and you really get the sense that the workers 'deserve' your tip and therefore you will. It is left to YOU the consumer to decide how much you valued the servers efforts.

[@axellacaze9115]

@@FlightNinja8 I could use the exact opposite argument. If tips are mandatory, the worker is not motivated to give you a nice service since he'll get a tip anyways. On the other end, if tips are exeptionally given to exeptionnal service you'll be much more incentivised to provide said service. When it comes to your comparions between USA and Europe it's also wrong. First, because other countries who do not have a tipping culture have a WAAAAY better service than the US (hello Japan). Secondly because I highly doubt "All European countries have a worse service than the US" is true. In some countries it is definetely true. In all ? I doubt it. So your arguments in themselves are just not enough to prove anything. Please note that the opposite argument equally suffers from a lack of definite proofs, which means we can't say for sure if mandatory tipping results in better service than non-mandatory tipping (and vice-versa).

[@alexarviso6836]

@@FlightNinja8 amerikkkan exceptionalism in a nutshell

[@itsjacob7239]

@@FlightNinja8 Cool!!!

[@ruan13o]

@@FlightNinja8 Merit has nothing to do with it. If this is a great system for encouraging merit then tips is how doctors, lawyers, investment bankers and politicians should be paid. But they're not. Even if you remove their bonuses their base salary are astronomically high compared to minimum wage. Tips do not benefit the worker. Perhaps a few very good/popular workers can earn a decent living from tips but the vast majority do not. Tips only benefit employers who no longer have to pay as much in wages. When you leave a tip at the restaurant you have helped the employer, not the employee.

[@gw7120]

Well for one in the US , cost of living varies state by state , so a federal one setting too high can ruin some states , its complicated yes , but we can all agree you raise minimum wage lots of prices will go up.

[@carrieullrich5059]

Which is exactly an argument for a National standard, if all states we're on equal wage footing, all citizens in every state could afford to purchase more American products and services, instead of keeping rural communities poorer for no good purpose.

[@tomasvrabec1845]

Why wouldn't the federal government then set one individuality for each state. Once again comparing to UK with its Age split between minimum wages. Just instead of the age of the employees use the residential status or address of the company

[@pegoe7784]

@@tomasvrabec1845 And why states dont do it? Oh wait, they already have done it.....

[@MrDadyD]

Problem being that some states in the US wouldnt raise the minimum wage even if ppl where starving and dying on the street.. Looking at you Alabama and Kentucky

[@trevinbeattie4888]

That statement doesn’t provide the whole picture, because 1) prices would only go up in sectors employing low-wage workers (chiefly leisure and hospitality,) 2) when lots of workers earn more they increase demand for the basic goods and services they need, which leads to job growth, and 3) companies can continue moving to automation to reduce their costs as they have been doing since the industrial revolution. So I do not agree that prices overall will necessarily go up.

[@Teisblem]

Meanwhile in Switzerland, Scandinavia, Austria and Italy: What minimum wage?

[@Scarface_.666]

In italy u get max 4 or 5 euro per hour where in Swiss u get 23 euro minimum

[@corpclarke]

@@Scarface_.666 Geneva introduced a minimum wage in November 2020. Switzerland has no minimum wage anywhere else.

[@rickrolld1367]

@@Scarface_.666 The answer to your question is: Strong unions.

[@pascalausensi9592]

@@rickrolld1367 It really is amazing what strong, clean, effective unions are capable of accomplishing. In Singapore, they even run the country's largest supermarket chain.

[@a_Minion_of_Soros]

That's great. The employer gets to pay what a person actually is worth.

[@ZakeriasRowlandJones]

Let the employers pay their workers a fair wage. Why in the world should customers be expected to foot the bill by tipping?

[@pegoe7784]

In many states if not on federal level it is not. If a server lets say, doesnt make to the 7.25 mark, the employer must pay them the other amount. Now, lets not forget that it is common for servers to hide at least part of their tips.

[@redrob6026]

I once got berated in America for not tipping. We did pay more than our bill but we hadn't taken into account the lack of tax on the bill. That seems weird for us. And the thing is we only ordered beers, it was quite bizarre.

[@ChrisGoesExploring]

As an outsider, an obligation to tip is the weirdest thing. It's socially awkward. I will never understand why the employer doesn't just pay employees fairly.

[@GuusKlaas]

As European I'd consider, when visiting the US, Tipping to be against the prime directive. It's not my place to interfere in a developing culture, and possibly contaminate it.

[@Alexander79080]

They gonna spit in your food lol if you don’t tip don’t go back their. Plus by not tipping you are basically taking away from their salary needed to survive

[@derekmulready1523]

@@Alexander79080 Low wage Economy = Exploited Citizens. One of the many reasons why the continental United States of America is lagging behind the rest of the Whole WORLD in living standards. Irish and EU Citizen 🇮🇪🇪🇺😷🤔

[@GuusKlaas]

@@Alexander79080 I am taking away a tip, which is supposed to be for excellent/above standard service. I'm not taking away sallary. The fact it's considered salary in the first place is considered barbaric where I'm from (to the point that tipping could be considered an offense to restaurant owners, as if they'd not pay their staff enough). If I ever were to visit the US again (I honestly made 2 trips only and did not know about tipping culture), I'll probably consider not tipping in general as to not contribute to the problem, but instead let their culture (hopefully) grow on its own. A form of renaissance.

[@dazza2350]

@@Alexander79080 that's just poor service then

[@Alexander79080]

@@dazza2350 It’s like not paying here

[@kyledavis463]

America, land of the free... labour 😂

[@plscometomychannel1007]

No that's China

[@kyledavis463]

@Fresh Turkey chill bro it’s called a joke 😂

[@TJ_Travels1]

@Fresh Turkey you can get rich anywhere

[@mikey3666]

@Fresh Turkey 'might get rich one day' Yeah keep believing the dream your government have pushed into your head.

[@moonlightyong1924]

@Fresh Turkey go to a place with better social mobility lol. USA's is quite low

[@lorenzofalorni3961]

Here in Italy the minimum wage is so low we don't even have it...

[@rickrolld1367]

Unions and negotiation in action.

[@cakeisyummy5755]

Italy has no Legal Minimum Wage.

[@84Actionjack]

The same reason Europe's unemployment is so high.

[@Josh-zu8pr]

Such a broken, broken country..

[@JelliinaCup]

Anytime you hear, "let companies decide how to pay their employees" (specifically the large ones) you know that's code for, "companies, feel free to shaft your crew".

[@reubenmorris487]

I like, "Let the market decide" declarations.😶 If it's OK to make more millionaires and useless billionaires, then it should be OK to pay people enough to NOT voluntarily live in poverty.

[@JChang0114]

So why don't they pay heart surgeons a minimum wage?

[@smellyhandsarefun]

@@JChang0114 Are you comparing minimum wage jobs to heart surgeons?

[@scifirealism5943]

@@smellyhandsarefun haha

[@emanonymwikdjdjdn]

Tdlr: Why is America minimum wage so low Mexico with 1 dollar minimum wage: Im a joke to you 👀👀

[@Javier-ms5rr]

50¢ *

[@Rude_i_Wredne]

Tbf, cost of living in mexico is probably like 20x lower.

[@shakthianjanananayakkara6528]

Raising the minimum wage to $15 an hour in a small town in Mississippi is like raising it to $30 an hour in San Fransisco. A fast food restaurant maybe okey with paying $15 for a worker in San Fransisco. But no one's paying 30 bucks in SF, just as no one would pay 15 in rural Mississippi. Raising the min wage would not be a big problem for big cities. But it will kill the economies of small rural towns.

[@Inertia888]

It will also kill or at least harm most small business.

[@N12015]

Which might explain A LOT of the politic vision USA has, with the urban sector being moderately left-wing while the rural one is overwhelmingly right-wing.

[@brynyard]

It’s arguably worse working full time for a wage you cannot live if than not. It stops you exploring new options or seeking other options, while at the same time slowly draining you of energy.

[@Angeloisbased]

When you said 2.13 an hour the owner is required to make it minimum wage if tips do not compensate. The thing people in these states like is that their tips can’t be taxed.

[@tiredox3788]

I think the 15 minimum wage should only applied to big corporations who can clearly afford it.

[@KyurekiHana]

I am not disagreeing, but not all large corporations are created equal. Some companies have high revenues and low profits, often due to being in highly competitive industries that drives costs down. For these companies, a doubling in the minimum wage over a short period of time would send them deeply into the red.

[@tiredox3788]

@@KyurekiHana I never said all big corporations are equal my guy, but you can see places like Walmart and Amazon can clearly pay their workers $15 an hour. 😂

[@yuvalne]

Why would small businesses be exempt? The fact that you're a small business doesn't mean you deserve to be allowed to give your workers poverty wages.

[@shroomyesc]

Why, though? Do business owners have a right to stay up? Wouldn't it just mean that they're not a profitable enough business if they cannot afford to pay a living wage?

[@tiredox3788]

@@yuvalne Because look at some places in America. If you not a small businesses in a big city you not can't afford to pay $15 an hour. For example rural areas, small towns, or run down ones.

[@megihoxha7637]

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[@КсенияУткин]

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[@КсенияУткин]

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[@kleaghoni3883]

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[@kleaghoni3883]

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[@kailam8137]

It's not ignorance but unprofessional broker in the market

[@zzzanon]

Why not $100/Hour? If the benefits are greater than the costs, then why not take this idea even further? Surely there are no unintended consequences. So I can volunteer (work for $0), and I can work for $8/hr), but the government says I am not allowed to work for $7/hr. If it is MY labour, why can I not sell it for whatever I want? Companies will just switch to robots wherever possible, and the would-be workers will be unemployed. Or move the jobs over-seas.

[@JamesHardaker]

im not sure what argument fallacy that is but you could make the same illogical argument about anything. The benefits to society do not increase linearly, its probably more like a bell curve.

[@zzzanon]

@@JamesHardaker , that's because it isn't a fallacy (though you might incorrectly think that it sounds similar to a slippery-slope fallacy). The same reasons why it is bad to have a $100/hr government-mandated price-floor (aka minimum wage) also apply to why any minimum wage is bad. A $100/hr minimum wage would be bad because many people are not that productive (cannot provide that much benefit to an employer), and thus they would become unemployable in the LEGAL market. (though though could into the underground/black/illegal market where they don't pay taxes and are much more likely to be harmed). The same applies to any minimum wage. And the people hurt most are those that do not yet earn that amount (e.g. the homeless, students, disabled, etc). If I were jobless, I would want to take any job I can possibly get because any income (even $5/hr) is better than zero. The government has no standing to tell me what I can and cannot sell MY labour/skills/time for, because it is mine, not theirs.

[@fernandomaluenda4226]

@@JamesHardaker I do think the original post was grossly exaggerated, but in a way I do have to agree with him. Your comment is making me hesitate, though, because it is true that maybe the correlation simply isn't linear. Those types of relationships happen all the time. I'm interested in hearing your perspective regarding inflation. Given, I haven't done historical research about it, so excuse me if I sound ignorant. It makes sense to me that if wages are increased without providing extra labour then the result in the long run would simply be inflation e.g a McDonalds employee doesn't sell more burgers by getting paid more. My question to you is why do you think my logic there is flawed? Also, what would be a somewhat optimal federal minimum wage given that the the relationship isn't linear? I'd love to hear your perspective on this. Thanks!

[@TheNixie1972]

Yes on the tipping video. When in a US restaurant the bill will state a higher amount than expected, because for some reason the menu is "Excluding taxes" and then I need to make up an additional amount, for which nobody will tell me how much is should be as it is "at the customer's discretion", but when I don't follow the unwritten rules (that I don't know) some people may get very angry at me. That deserves some study!

[@alana1670]

Being in New Zealand it was interesting to see how well we compare internationally, particularly in terms of the minimum wage ratio. And the minimum wage is about to increase further here next month. Americans should note that despite our relatively high minimum wage, our unemployment rate, even in a Covid-affected world is currently 4.9%. So much for the spurious argument that higher wages cost jobs....

[@SeanGHOB]

The reason that raising the minimum wage does not, typically, result in increased unemployment is that people who earn minimum wage can't afford to save, so all of that money recirculates, and the multiplier effect results in increased sales, resulting in more jobs.

[@zzzanon]

You're falsely assuming that it remains profitable for the employer to continue hiring the person.

[@davidgettel7721]

A higher minimum wage also creates velocity in the money supply and higher costs for production, which results in inflation that effectively negates the bump in pay that the lowest value workers receive and cuts the buying power for everyone in the economy.

[@lenno15697]

This is a meme view of the economy. Prices and wages are sticky in the short-run, so multiplier effect applies there, but in the long-term wages are determined by neoclassical growth models. The most likely reason is that at current minimum wage level, labour demand is pretty inelastic. That and some studies may not take into account hours of employment when measuring for unemployment (Card and Kruger did take this into account though).

[@stephanreiken9912]

You get paid more at minimum wage in Texas compared to minimum wage in California. The cost of living is that different.

[@ObscuredNight]

Denmark be like: Say no to minimum wage

[@LaughingOrange]

Without unions this will be terrible for workers.

[@prometheus7387]

@@LaughingOrange I think the way it works is that the wage given must be certifiably reasonable. This is the case in Singapore, where I live, in which there is also no minimum wage.

[@cyril_ogude]

Yeah and massive unionization.

[@adrielsebastian5216]

@@LaughingOrange unions negotiate wages in Denmark, so there's no nationally mandated minimum wage.

[@ObscuredNight]

@@LaughingOrange Unionising is rapidly declining in Denmark as you say this, in 2000 the percentage of the workforce that was in the union was roughly 70%, while now it's 53%

[@kurkanschiky5237]

You can’t compare the difference of minimum wages across countries without comparing the purchasing power of theses countries. As far as I know the employer is obligated to pay his employees the full 7.25 if their 2.13 + tips is under the federal minimum wage

[@panjoshua6251]

As someone who has been a server and has also traveled extensively, I actually prefer our tipping culture? Lol. The minimum wage for tipped employees in my state is around $7/hour (and around $8/hour for bartenders) but when your customers are tipping around 20% on their checks, you can easily count on your wage working out to be $25+/hour, plus your little $100-$150 paycheck every week from your hourly wage from which your taxes were deducted. Serving sucks but with that economic incentive, it’s a very appealing job for people who want to make bank without having to put in full-time hours every week.

[@boalenkaer]

Minimum wage in Denmark is $19.83, after taxes it will be $12.58 per hour. This includes 6 weeks payed vaction, for the tax payed we get free healthcare, free education and a decent retirement at age 68.

[@NightFighterDK]

There is no minimum wage in Denmark

[@nickl7996]

As an American, I’d like to leave a tip for a job-well-done on this video

That's more than 5x the minimum wage in Brazil 🇧🇷

[@samael2607]

The problem with a federal minimum wage is the vastness of the country and the different living costs in different areas. I’m in the UK and when I took a uni job at McDonald’s, I found out they had something like 4 different wage (and menu price) zones based on the local economy. Now expand that to a country the size of America. A decent minimum wage in Utah might be a poverty wage in LA. I’m now a teacher and we have the same wage across the country (apart from London). I’m in the south and I can barely scrap enough together after years of savings for a 2 bed house. Whilst teachers in the north can easily afford 3 or even 4 bedroom houses.

[@EarlHare]

I would like to add, about tipping culture. Here in the UK many restaurants have been imposing automatic service charges on all bills (about 15%). Usually the customer doesn't even notice unless they go through the bill and nobody wants to be seen as a miser when they are out at a restaurant with work colleagues or friends, even family. This peer pressure ensures that most people pay up. The staff are not allowed to accept cash tips, and the service charges go straight into the restaurant owner's pockets. Some of the cash is used to bump up the pay of staff but it's not even 30% of the total cash that is collected in service charges. At least this is how it worked over a year ago. I got instantly fired at the start of the pandemic and I haven't been able to work a day since. i don't think it's gotten any better in all honesty.

[@Yuushz80]

After watching the whole video: Yes, the USA must boost the minimum wage and also create a policy to peg the minimum wage to inflation and cost of living, so this problem doesn't arise again in the future. I'd also like to thank you for you excellent content. Keep up the good work!

[@paulgarcia2887]

They need to eliminate the federal minimum wage and focus instead on a wage based on a county or city cost of living. The minimum wage should allow you to get ANY job in city or county and be able to support YOURSELF with that job. That amount varies by state even by county. Raising the minimum wage federally will also make it harder for people who want to get out of the employee role and start their own business to succeed as the cost of operation will be higher.

[@hs5312]

Federal minimum wage makes no sense considering how different the economies are in various regions of the country. Although I don’t think minimum wage should exist at all, pay for a job should be something worked out by employees, employers and unions

[@zzzanon]

You brought up really good points that I forgot, regarding the cost of living differences, and the different levels of government. Thanks for sharing!

[@qjtvaddict]

That would skyrocket the minimum wage tho

[@thumpertron]

What are you even talking about? You know other countries exist right? And that in these other countries where the minimum wage is higher that the US people can still start their own businesses and become successful....if someone can't start a business unless they exploit others then they need to rethink their idea. Maybe they'd be better off moving to a poor country and 'hire' actual slaves.

[@keiichi960]

Why should small businesses be stuck paying huge labor cost for very simple jobs?

[@monolith834]

A combination of neoliberalism, the fact that excellent benefits which used to make up the difference being slashed, a lack of unionization, and most politicians not understanding the needs of the needs of the poor.

[@tigerlily1118]

Yes. You're giving them too much credit. They don't give AF.

[@lenno15697]

Sounds based.

[@T0M_X]

Tipping is so weird in america, an employee should never rely on tips as it is optional

[@peter7755]

The national minimum wage in Australia as of 1st. July 2020 is $19.84 with 25% loading for casual workers, which is to replace sick leave, annual leave, long service leave, etc. This rose in February 2021 by 1.75% in retail, food services, accommodation, and a few others. They do however still get superannuation paid into an account which is mandatory.

[@leftyguitarist8989]

$15/hr is too much in some areas and too little in other areas, we need to abolish the federal minimum wage and switch to the Scandinavian method where wages are regulated by unions.

[@altrag]

That would work better if there hadn't been nearly 50 years of union busting. _Some_ unions still have power but the vast, vast majority of workers - and particularly the ones who tend to rely on the minimum wage - aren't unionized. Removing the minimum wage would simply mean those people get paid $2/hr or less rather than $7.25. All these "shithole" countries that Americans like to mock didn't get where they are by magic. They got where they are by having their country run by people who only wanted profit out of them and didn't give a damn about their lives or livelihoods. The big difference is that America seems to be welcoming that mentality with open arms while the current developing nations are trying as best they can to emulate America's post-war period between the New Deal rebuilding the country to become the most powerful in the world, and Reaganism trying to destroy it all for the sake of a few dozen wealthy families. (OK maybe not "trying" to, just not giving a damn if it happens - a phrase that sounds familiar from a few sentences ago).

[@leftyguitarist8989]

@@altrag We could also have the federal government tie the minimum wage to a living wage nationwide on a county by county basis.

[@altrag]

@@leftyguitarist8989 I mean technically you could, but who would administer that? Who would determine what the minimum wage for each county should be? Those decisions would pretty much have to be done at the county level and administered by the states. Which is kind of the situation we're at right now.. a situation that isn't really working. The main thing they really need to do, and almost certainly won't, is tie minimum wage to inflation so that it goes up with the cost of living rather than stagnating for a decade and then being a sudden jump. Jumps are bad for workers in the years prior to each when they're being paid less than the poverty wage. And its bad for businesses who have to be prepared for a jump of any amount at any time, meaning they have to keep a much higher reserve that they could otherwise be spending on developing their business or paying out to shareholders or whatever. And those that don't bother to keep such a reserve end up going through massive layoffs or out of business after every jump. A smooth, predictable rate of increase is _much_ easier for businesses to handle. The only people the current system is good for is politicians - Democrats get a boost from the "citizens are priority" crowd every 5-10 years and Republicans get a boost from the "citizens can die for all I care as long as its profitable" crowd in the intervening years. Win-win for everyone in Congress. Lose-lose for everyone not in Congress.

[@leftyguitarist8989]

@@altrag I agree, we should tie the minimum wage to inflation.

[@keiichi960]

@@leftyguitarist8989 min wage is already tied to inflation. You print more money for higher wages and up goes inflation.

[@edvin8379]

they are actually very high the minimum wage in Sweden is 0 dollars

[@michaelmayhem350]

Gotta keep those wages down so ceos can afford their yachts

[@glutenfreegam3r177]

Tipping is NOT mandatory...customary yes, but mandatory, definitely not!

[@foxxy-3748]

The reason a minimum wage exists is to give the common man the minimum amount of income required to live a sufficient enough life. The minimum wage is meant to give you enough for a house, transportation, and the cost of children. This is not possible with a minimum wage as low as $7.25/hour. That is enough to raise wages enough to the point where it is actually possible and efficient to live a satisfactory life.

[@estebanmesa2925]

You forgot to say that employers have to pay the difference all the way up to minimum wage if you dont get tipped enough

[@FinancialShinanigan]

Saw a tweet saying "If min wage is increased, say hello to $30 burritos." Very sensational and might appear true but if say Taco Bell does raise burrito prices to $30, customers will not go there and eat at Chipotle that has $25 burritos. This forces Taco Bell to lower their prices in a capitalistic economy and leads to similar burrito prices as before the min wage is increased.

[@schroederscurrentevents3844]

And chipotle can afford that because they fired half their workers

[@sorencyrano1413]

The average Big Mac costs 5,66 US dollars in the United States, while it costs 4,87 US dollars in Denmark. An American fast good employee gets paid 7,25 US dollars per hour, while the Danish fast food employee is paid 22 US dollars per hour. The Americans really need to start learning how market forces work.

[@blazertrail5344]

Yes and if everyone’s making more money they’re spending more money which is good for the economy

[@VindulaP]

Your statement fails basic logic. Once minimum wage is increased, Chipotle will no longer be able to sell $25 burritos. A Chipotle burrito in this case could be $50 or $60. There is no reason for Chipotle to keep their prices the same while higher wages cause Taco Bell to raise their prices. Chipotle will also face the pressure from higher minimum wage and customers will be paying more for both Chipotle and Taco Bell but the latter would remain cheaper relative to the other.

[@alexanderballa6152]

Hmmm maby with a big mac they need to raise it by 10 cents to make the same money

[@stephendesborough8663]

'This doesn't mean we're right and you're wrong... you're just different' 😂

[@cshairydude]

Translation: I think it's stupid but it's not the point of this video and I don't want the comments to be full of nationalist trolls talking about it.

[@jakeb1381]

In South Korea, minimum wage is about 8.85 USD including holiday pay which should be given to all employees working more than 15 hours a week.

[@krateproductions4872]

I would love to see a videos on Unions. How some countries have strong and effective unions but some countries have no unions or very ineffective ones.

[@jamesvincent1567]

Amazon: pushes for higher minimum wage Also Amazon: first no checkout supermarket and going automated wherever they can... So is this really gonna help poor people?

[@randeknight]

Stopping automation so that people can keep their jobs was literally the Luddites argument. Eliminating jobs by automation is a GOOD thing. It's why we not longer employ 90% of the population farming. We just need to do it slow enough that businesses and people can cope.

[@jamesvincent1567]

@@randeknight yes I do agree with that but Amazon are making it much hard for people to start a business by pushing for a higher minimum wage

[@redwolfexr]

You want to go back to getting handwritten bills in the mail too? Stores and fast food have been going to automated kiosks because the customers want it. If nobody was using the apps and kiosks then they would not be going in. Its faster, and your order is accurate. Guess what? In 20 years nobody is gonna be driving 18 wheelers either.

[@jamesvincent1567]

@@redwolfexr no just don’t make it purposely harder for smaller businesses by making the minimum wage higher..

[@redwolfexr]

@@jamesvincent1567 But you are fine with having to subsidize small business (and big business) with food stamps and medicaid? Note that Amazon (who work their employees hard) voluntarily pays well over minimum wage in order to keep their employees. If they paid $7.25 nobody would work there because of how hard they are required to work. Increasing the MW would actually hurt them because then their employees could make the same money and not work as hard elsewhere. There is an imbalance between the amount costs have gone up the last decade and how much WAGES have.

[@spiritualanarchist8162]

I remember almost getting into a fight in a restaurant the first time i was in the U.S. I saw the tip on the bill and i just refused to pay it. I was all pissed off, getting the bill. With added taxes and tips, i had to pay a way higher price then 'advertised'. Very strange for a European indeed. Completely different system

[@Vexwisval28]

It's fucking insane! I hate how the US manages money, they don't include taxes/vat and "tipping" make you unknown of how much you are actually going to pay. I seriously rather not bother

[@jordanpwalsh]

I kind of enjoyed tipping bartenders in the UK. They'd give me a weird look and say I gave them too much. I was like no that's for you man.

[@lenno15697]

Yes it was weird for me too when I first moved to the States. But tbh now I just see it as part of the "price" of the food & service. It partially explains why the prices in restaurant are quite a bit lower in the U.S. than other developed nations.

[@spiritualanarchist8162]

@@lenno15697 well my first experience was in a restaurant at Miami beach so it wasn't that cheap ! :)

[@achilles4625]

Norway: don't mind me having $18 an hr minimum wage

[@jmunday7811]

norway doesnt even have a minimum wage; they just have sectorial barganing

[@justanotheremptychannel2472]

@@jmunday7811 that is what happens when you don't demonize unions?

[@kaisercalvin1742]

That would be a GODSEND here! What are the Nordics, paradise or something?

[@pecadodeorgullo5963]

@@kaisercalvin1742 the more North you go in Europe the better it gets with the exception of the baltics and Poland.

[@Djblois1]

Card and Krueger's study had a major flaw. It looked at employment by industry, regardless if it was minimum wage workers or not. If the employment of managers went up while the employment of the minimum wage staff went down it could be a wash. The Seattle Minimum wage study is the first study to overcome this design flaw and they show a reduction in wages for the minimum wage workers. We need to increase their wages but Minimum wage laws are not the best way to do this.

[@HippoLesb]

minimum wage in Malta is 770Euros (895$) per month. Our average wage is 18,000Euros and minimum wage 9,300 Euros. We have free education and free healthcare but rent for a two bedroom apartment is around 900Euros.

[@billmurray2592]

Make senators work @ minimum wage and they will quickly work to fix poverty in America...

[@himerosTheGod]

Short answer: Our politicians are allowed to trade stock while in office.

[@fernandomaluenda4226]

Wow, is that forbidden in other countries? I actually think it'd be good to implement here. Politician salaries are generous enough, idk how it's acceptable for politicians "making X" leave office with "10X". Simply silly. I'll be damned if they have OUR best interest in mind.

[@metallbroetchen]

@@fernandomaluenda4226 it's not forbidden here (Germany) but Politicians need to declare any excess income they earn.

[@fernandomaluenda4226]

@@metallbroetchen That is far more acceptable! Does that mean that corruption tends to be lower in Germany?

[@metallbroetchen]

@@fernandomaluenda4226 lower than in the US? Definitely. Objectively low? No. Especially our conservatives are far from innocent.

[@vikingraven4758]

@metallbroetchen Speaking for most of Europe, I don't think there are many non-corrupt politicians. Name me one politician that has not lied, drastically changed position, or suddenly been unable to pursue their promised goals after gaining power. Just the not lied requirement is hard to fullfil. Not saying the rest of the world is better, but I don't know of any "Good" side in Europe either.

[@PrezidentHughes]

It should be bumped to $10 immediately then pinned to inflation indefinitely.

[@coreymcmahon7312]

Inflation, and in a dream world, inflation and productivity.

[@zandaroos553]

@@coreymcmahon7312 Productivity does not take capital depreciation & expenses in to account and doesn’t factor in that most increase in productivity comes from separate sectors than where most minimum wage workers are. 60% of county median income would probably be the most sustainable model

[@coreymcmahon7312]

@@zandaroos553 Forgive me if I'm mistaken, but wouldn't increases in productivity from efficiency in any sector increase the overall amount of goods and services to be consumed? By adding a component of productivity into minimum wage wouldn't we essentially be spreading the ability of workers to receive some portion of the benefits of that increase in productivity regardless of sector, thereby potentially increasing demand for those newly created goods and services? Also, forgive if I'm misunderstanding the proposition, but wouldn't implementing a minimum wage pegged to a percentage of median income rather defeat the purpose of making the minimum wage a liveable wage as well as further stratify poverty and wealth to certain areas then reinforce it? 60% of the median wage in the US overall would work out to $10.79 an hour, but a liveable wage for a family of four (2019, MIT) is $16.54 an hour... Diabolically, wouldn't it benefit some companies to lower wages in the middle to keep the minimum wage low? Particularly in rural counties, where there may be only three or four employers that employ the majority of the labor force, that seems like asking for it. On top of that, not taking into account any kind of increase in cost of living or inflationary pressures would seem to derail the sustainability of the model, no?

[@zandaroos553]

@Corey McMahon 1. Please cut down on the filler words. 2. The productivity argument for wages assumes total transferability from high productivity change industries (tech, healthcare etc.) to industries where productivity has remained stagnant (non-wholesale retail, food service). This doesn’t happen, either it just causes hiring stagnation/layoffs by bigger companies and smaller firms to go out of business. Also that higher productivity comes from higher capital intensivity due to most of the rise coming from digitization, so a lot of that “productivity surplus” is soaked up by capital depreciation. The change in real total income has been much less dramatic, and is generally a more accurate window. 3. Median salaries tend to keep in line with annual increases in national income, and has been on an upwards trend even when adjusted for inflation. The diversity of positions and fields makes labor price collusion basically impossible. 4. Broad wage hikes in poor regions would only have the intended affects assuming within the long term money can affect real income in terms of goods. But more evidence points that money is neutral long-term, and thus to balance out the increase in some groups unemployment would spike to “rebalance” as smaller businesses unable to pay are crowded out of the market. There is some level of wage stickiness on the bottom rungs of the US job market but those are mainly low income workers in wealthy regions such as NYC, DC and California. Outside of that the wage market is responsive (to a “close enough” extent at least) and in less sticky markets you’re going to get worse outcomes from price floor on cost of labor. That’s why I’m more supportive of targeting, a fair price for each regional economy based on a realistic bottom rung of stickiness before the increase in unemployed outweighs the benefits to the subject of affected workers. I don’t want someone like my mom losing her job.

[@dchuhay]

@@zandaroos553 There's actually already a system in place for adjusting for cost-of-living based on area that's used for the military. We could use that to adjust minimum wage appropriately.

[@jonunciate7018]

Thankfully in Oregon state law prohibits companies from paying less than minimum wage if employees receive tips.

[@warmachineuk]

Tipping is an excuse to pay waiters less. Some say it encourages good service but tip size depends on customer experience and that's affected by factors the waiter can't control, such as food quality, price, how busy the restaurant is, and customer racial prejudice.

[@jessedavis3492]

Every time the minimum goes up a dollar in my state it keeps me on the same pay as a 16yr old. Basically you only make minimum no matter how long you work. There are no protections for long term employees. Some businesses do adjust in raises but most don't. The cost of goods and services does increase slightly.

[@popefragcis8575]

0:48 "how the us minimum rage weight"

[@justanotheremptychannel2472]

The fact is better paid masses spend more on local economy than high profits employers, thus generating the need for more services\production, hence generating jobs

[@bruceh9780]

I was going to say the same thing. When you pay minimum wage workers more, what do you think happens to demand for local industries that typically employ minimum wage workers like fast food and retail?

[@justanotheremptychannel2472]

@@bruceh9780 not sure about fastfood but retail defenetly gets better sales because people have more spare cash, also in Denmark fast-food workers have quite better pay & rights and I don't see any articles about how fast-food has failed in Denmark, specially in my country friends who worked at McDonald's tell about how every night they throw dozens of items on the dumpster so it isn't like they struggle for cash

[@scotandiamapping4549]

I came back to this video cuz I was struggling to find a per hour figure for UK's per hour minimum wage but then I remembered you used it here as a comparison.

[@notanicebear]

The fact that some Americans actually believe raising minimum wage is bad, and continue to vote for politicians that are against raising minimum wage, is just plain stupid.