Income Inequality

TheSker said:
It was plenty easy to learn about through the Google.
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Well, I googled "denmark economy 2018" and this was the first link: 

Denmark Economic Outlook
Data from the second quarter suggests that GDP growth picked up in year-on-year terms from the previous quarter’s weak performance, but it likely remained mediocre due to mounting external headwinds. Consumer confidence improved throughout the quarter, reaching an over three-year high in June. Growing confidence among consumers largely reflects higher wages and a strengthening labor market, with the unemployment rate at a multi-year low in May. In addition, business confidence moved back into positive territory in Q2 following several negative readings in Q1. However, the three-month average of the manufacturing PMI in the second quarter was significantly below the average recorded in the first quarter, largely due to declining new orders. A drop in new orders is indicative of weaker overseas demand and could hurt not only exports growth but also manufacturing activity in the second half of the year.

Denmark Economic Growth
Prospects of a global trade war and slower growth among Denmark’s main trading partners will impact the external sector and drag on the economy in 2018. Nevertheless, the domestic economy should remain resilient, propelling growth this year and next on the back of strong growth in private consumption and fixed investment. FocusEconomics panelists expect GDP to increase 1.6% in 2018, down 0.1 percentage points from last month’s estimate. For 2019, the panel projects growth of 1.9%.
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There doesn't seem to be anything unusual in that, nor the other links in the search, to match your claim:

TheSker said:
The non producers in Denmark are starting to cause them some issues.
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TheSker said:
Try a word like "welfare" or "immigration".

I didn't look, but are people chomping at the bit to move to Denmark?  You're making it seem near perfect economically.
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Or you could, you know, support your claim.

I don't know if anyone is wanting to move to Denmark any more than anywhere else, but maybe you should consider it if it seems near perfect economically to you. I'm just using it as an example of much higher wages not tanking the economy, causing unemployment or sky-high prices, etc., which in turn is evidence that we could have higher minimum wage here in the US without tanking the economy, causing unemployment or sky-high prices, etc.

 
The attempt to link Denmark to Venezuela under the hysterical Socialism banner pretty much negates the need for further analysis.

 
RedDenver said:
Or you could, you know, support your claim.

I don't know if anyone is wanting to move to Denmark any more than anywhere else, but maybe you should consider it if it seems near perfect economically to you. I'm just using it as an example of much higher wages not tanking the economy, causing unemployment or sky-high prices, etc., which in turn is evidence that we could have higher minimum wage here in the US without tanking the economy, causing unemployment or sky-high prices, etc.
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Let me be clear.

I do not think raising the minimum wage will tank the economy, raise u employment or cause high prices.

I think those that sell goods and services will raise their prices to offset the minimum wage increase.  Therefore the net gain to those it is most designed to help is nullified.

Except perhaps in Denmark.

 
Guy Chamberlin said:
We were a proudly capitalist supply and demand system back when the CEO made 57 times more than the average worker.

The CEO now makes 270 times more than the average worker.

CEO compensation has increased by more than 930% since 1978. CEO pay has grown faster than the stock market or the wages of the top 0.1 percent.

This increase in compensation is even more staggering when you consider that the top 1% earned 87 times more than the bottom 50% of workers in 2016, up from a 27-to-1 ratio in 1980.

We tend to think of supply and demand being driven by a mass of consumers, but there's an increasingly closed loop system where it's driven by high-level stockholders, who benefit from actions that often hurt the average consumer. The average consumer may not register this sea change, and doesn't see themselves contributing to a system that is working against their self-interest.

So supply and demand may not be what it used to be. 
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Consumerism is still supply and demand.

 
TheSker said:
Let me be clear.

I do not think raising the minimum wage will tank the economy, raise u employment or cause high prices.

I think those that sell goods and services will raise their prices to offset the minimum wage increase.  Therefore the net gain to those it is most designed to help is nullified.

Except perhaps in Denmark.
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Depends on if those that sell goods and services can offset most of the wage increases from existing profits or from price increases. Also keep in mind that increasing wages to the lowest paid gets that money distributed back into the economy quickly as the lower on the income scale you are, the less of your income you'll be able to save. With more money put back into the economy, sales of goods and services will increase. Depending on how and where that money goes back into the economy, businesses that have to pay more in minimum wage can actually make more money: Wetzel's Pretzels' CEO says minimum wage increase boosts business. So it's not nearly as simple as saying a minimum wage increase will always be nullified by price increases; of course, the reverse applies as well in that not all wage increases will be net gain. But by starting at the bottom end of the income distribution, we get the most bang for the buck with wage increases because of the need to spend instead of save for those workers. (And by extension the most gain should be had where wages fall the furthest behind the cost of living, so I think there's a strong argument to be made for the minimum wage to be tied to a minimum cost of living instead of a blanket wage increase over a large number of economically diverse regions.)

 
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RedDenver said:
Depends on if those that sell goods and services can offset most of the wage increases from existing profits or from price increases. Also keep in mind that increasing wages to the lowest paid gets that money distributed back into the economy quickly as the lower on the income scale you are, the less of your income you'll be able to save. With more money put back into the economy, sales of goods and services will increase. Depending on how and where that money goes back into the economy, businesses that have to pay more in minimum wage can actually make more money: Wetzel's Pretzels' CEO says minimum wage increase boosts business. So it's not nearly as simple as saying a minimum wage increase will always be nullified by price increases; of course, the reverse applies as well in that not all wage increases will be net gain. But by starting at the bottom end of the income distribution, we get the most bang for the buck with wage increases because of the need to spend instead of save for those workers. (And by extension the most gain should be had where wages fall the furthest behind the cost of living, so I think there's a strong argument to be made for the minimum wage to be tied to a minimum cost of living instead of a blanket wage increase over a large number of economically diverse regions.)
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You do understand why a business like Wetzel's Pretzels would benefit, right?

 
TheSker said:
You do understand why a business like Wetzel's Pretzels would benefit, right?
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Yes, and there are a whole lot of other businesses that would also benefit. Many of them employing the same minimum wage workers that would also cost them more in wages. The businesses that would be hurt most would be those that employ many minimum wage workers, have few minimum wage workers buying their goods and services, and have the lowest profit margins.

 
RedDenver said:
Yes, and there are a whole lot of other businesses that would also benefit. Many of them employing the same minimum wage workers that would also cost them more in wages. The businesses that would be hurt most would be those that employ many minimum wage workers, have few minimum wage workers buying their goods and services, and have the lowest profit margins.
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So if the net benefit is that now the lowest on the economic scale can now buy cheese and a soft drink with their pretzel......so be it.

I wonder if the CEO got a raise?  My guess is yes.......

 
Guy Chamberlin said:
And to think I crafted that post to avoid this kind of simplistic response. 

You are nothing if not short-winded, Sker.
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I'm educated and experienced in things related to attention spans and psychology.

I think kids nowadays say tl;dr or something to that affect.....

 
It's close to a consensus that the Denmark model isn't sustainable for large populations, even one as small as their's (5 million or so). 

The model is laughable to me, but I can see how it sounds good in theory. And I suppose it would until the skill shortage takes hold, and the amassing personal debt among families becomes to much to overcome. Not to mention the scarcity, and eventual death of ambition. I mean, who wants to strive for greatness when you're living the same life as the guy selling newspapers on the corner?

 
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