Category Archives: jobs

A Thought on Wages

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Wall Street is now starting to complain that wages are too low.

“Without a real acceleration in wages it is hard to get a meaningful pickup in consumer spending,” explained Michelle Meyer, senior US economist at Bank of America Merrill Lynch.

Weak consumer spending holds back profits and economic growth….

And

Weak wage gains also are making it hard for the housing market to return to normal, Mr [Jack, Executive Vice President and Chief Investment Officer at BMO Private Bank] Ablin said.

He calculates that new single-family home construction is running at less than 500,000 a month. Demographics say it should be twice that….

“People are waiting longer to get married and they are having fewer kids,” Mr. Ablin said. That is making them delay home purchases. “It is certainly making us a little more cautious on the economy.”

This, though, is an economic argument for why businesses are considering making the move—it’s a question of sound business practice that only businesses can make. It’s not at all an argument that government should intrude and mandate a specific minimum wage—or even (assuming government central planning were equal to the task) that government should try to tailor a mandate to government-perceived unique conditions.

Minimum Wage and Morality

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Seattle has passed an ordinance that will raise the minimum wage private businesses in the city must pay to $15/hr. The wage increase will take effect in stages over a few years, starting next April. I’ve written elsewhere (here, for instance, and here) on the economic utility of raising the minimum wage.

What about what a government-imposed minimum wage does to a worker’s morality? A Seattle home health worker earning $10.95/hr had this to say about her situation and Seattle’s minimum wage mandate, as summarized at the first link, and also quoted there:

[She] is looking forward to the way a higher wage will help her support her three children.

She said she and her three kids are living with her brother because she can’t afford an apartment of her own even though she works full time. “This will make changes to myself and also a lot of other people in my shoes.”

She says that like family taking care of family is a bad thing. But why shouldn’t family take care of family first, rather than strangers being forced to do so ahead of family? Plainly, this family does not need the outside help; they just find it…convenient.

VA Union Mendacity

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This tale comes from Kimberly Strassel in her recent op-ed in The Wall Street Journal.

The Federal Labor Relations Authority, the agency that mediates federal labor disputes, earlier this month ruled in favor of this union president [Janice Perry of local lodge 1798 of the National Federation of Federal Employees], in a dispute over whether she need bother to show up at her workplace—the Veterans Affairs Medical Center in Martinsburg, W.Va. According to FLRA documents, this particular VA employee is 100% “official time”—D.C. parlance for federal employees who work every hour of every work day for their union, at the taxpayer’s expense.

In April 2012, this, ahem, VA “employee” broke her ankle and declared that she now wanted to do her nonwork for the VA entirely from the comfort of her home. Veterans Affairs attempted a compromise: Perhaps she could, pretty please, come in two days a week? She refused, and complained to the FLRA that the VA was interfering with her right to act as a union official.

The FLRA’s decision can be seen here.

There are two solutions to this. Disbanding the VA is one. That would eliminate the union’s ability to mishandle our veterans altogether. The other, now come to light, is to eliminate the FLRA altogether. It’s plainly become much too politicized—unionized—to be able to do its statutory job fairly, objectively, and honestly.

College, and What Degree Are You Looking For, Again?

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From Millennial Branding and their report The Multi-Generational Job Search (done in conjunction with Beyond.com), centered on a survey of “job seekers and HR professionals,” come these tidbits.

On the matter of whether going to college is, of necessity, for everyone:

[T]he majority of hiring managers (64% [2,978 respondents]) would still consider a candidate who hadn’t even attended college.

And

73% feel that college is only somewhat preparing students for the working world.

Then, this:

Liberal Arts majors (who are historically more focused on communications [and communications skills sought by 83% of respondents]) were shown to be the least likely to land a job, with only 2% of companies actively recruiting those graduates.

This against 27% looking for some sort of STEM degree and 18% looking for business majors (aside: these low numbers are an outcome of this administration’s poor economic policies, say I).

Hmm….