How High Would You Make the Minimum Wage? We Asked L.A. Residents.

And what are the consequences?

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How High Would You Make the Minimum Wage? We Asked L.A. Residents.

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To many, raising the minimum wage seems like a no-brainer. If the poorest workers can simply make more money per hour, they'll be lifted out of poverty, right?

But would supporters change their minds if drastic wage hikes resulted in some nasty unintended consequences, both for the poor and for others?

California's governor Jerry Brown signed a bill raising the state's wage to $15 an hour, despite admitting that, from an economic standpoint, such a hike "may not make sense." Fifteen dollars an hour is a wage that Democratic presidential candidates Hillary Clinton and Bernie Sanders have each advocated for as a federal minimum, even though a CBO report estimated that even President Obama's more modest proposed hike to $10.10 an hour would result in about 500,000 American jobs lost.

Reason TV visited Los Angeles' hipster enclave of Silver Lake to find out how high residents would like to see the minimum wage go and to discuss some of the possible outcomes of a wage hike on the local economy.

Scroll down for downloadable versions of this video. Subscribe to Reason TV's YouTube channel for daily content like this.

Approximately 7 minutes. Interviews by Justin Monticello. Produced by Zach Weissmueller and Justin Monticello. Edited by Weissmueller. Additional graphics by Josh Swain. Music by Wood Spider, Kevin MacLeod, and Jimmy Fontanez.

Comments

[Eeyore]

We need to add a guaranteed 40 hour a week to this. Nobody should ever be allowed to work for less then 40 hours a week.

[esteve7]

or more

[Eeyore]

Yes. If anyonr is allowed to worm more, then some people would get ahead. In fact we should also have a maximum wage. Screw it, we should pass an ONLY wage law. You are only allowed to make exactly the same amount as everyone else.

[dchang0]

That'll be the very generous and equal salary of $1 per year, Comrade. Welcome to your new work camp!

[Cap'n Krunch]

At one time we did kind of have a maximum wage. FDR passed a law during WWII that banned paying anyone higher wages, no increases, no raises, no bonuses, no offers of more money to steal that great guy away from that other company. The result was that business started offering health insurance instead of cash, which was the start of the massive increases in the cost of health care in this nation. Suddenly someone else was footing the bill for ever increasing numbers of people and the costs went through the roof. After WWII everyone 'expected' health insurance as part of their wages.

[mad.casual]

Nobody should ever be allowed to work for less then 40 hours a week.

Can you imagine the tyranarchy?!?

Corporations like Nike and Bass Pro Shops would have their slaves wearing their products or using their gear out on the golf course or on the lake for a scant few hours every per week for zero pay and entirely against their will!

I almost wonder if it's not a derivative or extension of rape fantasies.

[namnikalo]

my roomate's mom makes $61 an hour on the computer . She has been without a job for 5 months but last month her check was $15697 just working on the computer for a few hours. visit this website ?????? http://goo.gl/JNLxe5

[SimonJester]

See? This is the problem. At $61/hour, she made 15697 in a month. That is 257 hours. In a 4-week month, that is 64 hours a week.

See? We need mandated 40 hour work weeks! This poor guy's roomate's mom is a wage slave! She needs to unionize!

[Cap'n Krunch]

Heck, that's what she cleared. You should have seen how much the government made off of her slave labor.

[Clich? Bandit]

Reason videos make me contemplate that one way mission to Mars.

Good God, how do Zach and Justin do it? I would have been apoplectic after hearing some of those responses.

/bangs head into desk to remove the stupid

[Jimbo]

I haven't had enough alcohol yet to watch the video. Question I just asked myself: "Is it as bad as I think it is?"

Sounds like it is!

[mad.casual]

"Is it as bad as I think it is?"

It's not as bad as you could imagine but nowhere near anything approaching "good".

If 'some dude' says $15-20 and you ask, "What if that lead to job loss, closures, and increased incorporation." and he said, "Okay maybe not." Is that a good or a bad thing?

Come to think of it, have the drink either way.

[N]

Do people this dumb know what $25/hr works out to per year? Do they have jobs that pay them this much?

[UnCivilServant]

$25/hr 40hr/wk is $52,000 assuming no unpaid leave.

[N]

Which is the median US household income. Do people who lack the basic reasoning skills required to see the problem with a substantially higher minimum wage make this much? Who is paying them? I wouldn't hire any of these people to do my laundry.

[timbo]

I would totally pay that to the guy that spins that sign outside the mattress store.

[invisible finger]

That job will be reclassified as "community service hours" and the state will let you pay him $6/hour if you fill out all the paperwork and a $300 filing fee.

[timbo]

Good point. There will be a never ended stream of loopholes to get around this.

You pay your fee at the office of purchasing blowjobs for politicians.

[SQRLSY One]

Minimum of 40 hours a week, yes, and, um, $135,876.00 min dollars-per-hour. If yo're not in favor of that much or more, than you are a CRUEL NAZI SLAVER!!!!

[gaoxiaen]

Is that in US or Zimbabwe dollars?

[Johnimo]

Oh ?. you are so cruel to remind us of the poor Zimbabweans. Of course the US$ is now one of the two, de-facto currencies of that fine country. So, US and Zimbabwe dollars are the same, but I know what you mean.

[The Hyperbole]

Why do I the feeling that the end of that video was leading into an entirely different kind of video, IYKWIM,AIPSYD.

[Rufus The Monocled Derp Slayer]

Jesus Mother Murphy me. How the heck does Silverlake get up in the morning without hurting itself? That was painful to watch. You can feel the hamsters running in the brains they were thinking so hard. Do they serve Nilbog milk there?

In the end, they just cop out and say 'yeah, well, fuck it. 'Overall' it's *worth* it and it would be *better*.' Never once specifying what 'overall' even means or how they define *worth* it.

Some key quotes:

'I don't know if it makes economic sense' and my personal favorite "Kinda sounds about right".Now there's a statement to form public policy around or reach success.

[invisible finger]

Now there's a statement to form public policy around or reach success.

Well they're going to make voting decisions on those same statements. It's not a chicken or egg question: the low-informed voter begat shitty public policy. That's why we originally had the sense not to tax these dolts nor let them vote. Then some evil genius decided to tax them anyway, and taxation without voting rights followed - the point being that these idiots were even fooled into thinking taxes are okey dokey as long as they get to cast meaningless votes for people that make them feel good.

[timbo]

You could get 90% of americans to vote to have themselves killed.

[invisible finger]

I'd settle for 30%. But the more the merrier I guess.

[SimonD]

I don't think you could get 90% to vote to have themselves killed, but you could certainly get 51% to vote to have YOU killed, or ME killed. That's the scary part.

[SQRLSY One]

Wait, I can vote to have mahself kilt? Then ahs ken inherit a billion dollars in that them thar lawsuit lottery? WHERE do I sign UP?!!??!?!?!?

[Trshmnstr, terror of the trash]

Welcome to the products of our modern education system. These are Gen X and Millennial people who were taught more about self esteem and Earth Day than about microeconomics and critical thinking.

"Well, uh, i think that it would be better to raise the minimum wage because, uh, because corporations would make people into slaves"

[mad.casual]

These are Gen X and Millennial people who were taught more about self esteem and Earth Day than about microeconomics and critical thinking.

I don't know what Gen X you grew up in but if my Gen X was about anything it was a lack of self-esteem and not caring about it.

[invisible finger]

Now now, be fair. People have been this stupid since compulsory education has been in place, it's not just Gen X and millennials.

[dchang0]

As if government making people into slaves is any better. It boggles my mind why people throughout history repeatedly choose to trust gov't enslavement over commercial enslavement when gov'ts have much more power and likelihood to kill them.

At least with commercial entities, one can vote year round with the wallet. Every day is election day with the power to boycott and buy.

[Rufus The Monocled Derp Slayer]

Love the girl who claimed no minimum wage would be bad because people are horrible.

The interviewer could have replied, 'Like in Sweden and Denmark?'

[LoneWaco]

ask them about maximum wages next time.

[Eeyore]

I think I figured out how to eliminate unemployment. The affordable care act showed us that taxing everyone who was uninsured gave them all health care. We need to tax everyone who fails to keep a job. Problem solved.

[Hamster of Doom]

That's an extra chocolate ration for you.

[n00bdragon]

"The trade off is that, ya know, some smaller places that can't absorb that money, that they would have to close. Do you think that that's worth it?"
"That's a shame, but I feel like, maybe, there could be like a-um, a government loan or subsidy or something that could help."

Perfect! The government paying employers money to hire people that otherwise aren't worth the money they are being paid. I can see absolutely nothing wrong with this scenario.

[Rhywun]

I'm sure Mom and Pop will appreciate the extra paperwork needed to register as a Government Shop.

[GILMORE?]

Surely there is no money wasted or inefficiencies created in this giant loop of =

"borrowing from Peter to Pay Paul to Pay Peter's Kid a Living Wage While Taxing the Shit out of Pedro Who Wants to Replace Pierre With a Machine and is Taking Out a Subsidized Loan from the Bank of Pierce which is mandated by the Fed to raise its risk exposure.... yadda yadda yadda..."

[mad.casual]

I'm sure Mom and Pop will appreciate the extra paperwork needed to register as a Government Shop.

Stick with your straightforward interviewing style from above!

I feel like, maybe, there could be like a-um, a government loan or subsidy or something that could help.

OK, my cameraman only makes $10 an hour now. So, would you "loan" me $5 so that he can have a living wage for the next hour?

[Sevo]

"...a-um, a government loan or subsidy or something that could help."

Yeah, 'cause if the government's paying for it, it's free!

[Slocum]

Actually, they've just reinvented a form of the EITC -- but paid to the employer instead of the employee directly (must not have gotten the word that for progs the EITC is now considered bad because it's a subsidy to employers).

[invisible finger]

"That's a shame, but I feel like, maybe, there could be like a-um, a government loan or subsidy or something that could help."

This is why people fled Germany in the 19th century.

[Akira]

"That's a shame, but I feel like, maybe, there could be like a-um, a government loan or subsidy or something that could help."

Is it just me, or do "progressives" frequently use the word "feel" when they are describing their opinions? Is that an inadvertent admission that they're just basing their entire worldview on their emotions?

[Krapulent Kristen]

The stupid is strong among LA hipsters. Nice to see nothing has changed since I worked in SoCal 20 years ago.

[GILMORE?]

See = Youth Labor Force Participation in the US, ~1990- 2012

Since 1990 there's been basically no change in the % of people over 20 who work.

But for people younger than that, it went from 45-50%+ of the population to 25-30%+ in 20 years.

The excuse i hear most often is "kids get more homework now than they used to", and stuff like, "parents force kids to do more 'extracurricular' blah blah blah. As though a job isn't extracurricular.

I have never ever seen anyone mention this in the context of the 'minimum wage'. Which seems to be a profoundly dishonest sin of omission.

[Rhywun]

Except the value of the MW in constant dollars has fluctuated up and down in that time but not greatly enough to explain the drop IMHO.

[GILMORE?]

Sure.

I wasn't suggesting some 1-1 correlation between a large, steady drop in labor participation and the MW.

I was suggesting that youth labor participation *is a glaring problem*, and it is at historically very very low levels.

And that anyone moaning about how much it needs to be 'hiked' really doesn't understand the market which the MW serves and where it hurts the most.

[GILMORE?]

I've seen other measures of that same stat, btw, which suggested that for "middle-class" kids - when only looking at Counties/Zips with above-median household income - that the rate is more like 17% employment.

iow, that the only young people who work these days are the ones who actually *have to*; i.e. to supplement household income.

Some morons might suggest that's actually exactly why it should be raised; ignoring that those people aren't 'supporting families' either, and that the most 'at-risk' are the ones who will get priced out *first*

Its basically like Cuomo's fast-food minimum-wage law. From everything i've seen it seems intended to prevent chains from hiring cheaper, youth-labor by reducing their competitiveness. Basically "fuck everyone but the unions"

[Rhywun]

I was suggesting that youth labor participation *is a glaring problem*, and it is at historically very very low levels.

Agreed, and I think it's mostly because (a) we're richer and (b) helicopter parenting.

[Diane Reynolds (Paul.)]

I was suggesting that youth labor participation *is a glaring problem*, and it is at historically very very low levels.

Hard to say why. I suspect myriad factors.

In this case:

"parents force kids to do more 'extracurricular' blah blah blah. As though a job isn't extracurricular.

I can only speak of personal anecdotes here, but my niece and nephew are exactly in this scenario. By the time I was the age of my nephew: 16, I had already had at least one summer job. That doesn't even account some freelancing like washing cars and mowing lawns where I wasn't officially "employed".

Their parents have them in multiple sports and activities which chew up nearly every evening of the week and then all weekend with games and tournaments. One sport ends, another begins, sometimes two going at the same time.

[invisible finger]

Part of the reason for these extra curriculars is that it helps with college admissions and impresses some scholarships.

[Trshmnstr, terror of the trash]

Hasn't the median real wage gone down (not kept up with inflation) over the last 40 years? It would make sense that if the MW is roughly keeping up with inflation and the labor market isn't, that the lowest skilled workers would no longer be able to find jobs.

[UnCivilServant]

In that case, it sounds like the perfect time to make it even more unattractive to hire them!

[Trshmnstr, terror of the trash]

After doing some research, finding a consistent measurement to tie both real wage and real minimum wage to is a pain in the ass. Let alone all of them being adjusted to different years' dollar. Needless to say, it's much more muddled than my prior post let on to.

[Ron]

A lot of job are no longer allowed to hire anyone under 16 so they are left to weeding yards for granma.

[NYC2AZ]

I liked doing yard work and shoveling snow for a job when I was a kid. 100% cash business with no government intervention.

[Soave the Last Dance for Me]

Go go black market!

[invisible finger]

But for people younger than that, it went from 45-50%+ of the population to 25-30%+ in 20 years.

This is an important point. I know when I had a part time job at 15 I got a nice shocking lesson about economics and taxes in the real world; I would never have learned that lesson from public school courses for various reasons, the simplest being that teachers don't even pay FICA..

Of course, part of the reason I had a job at 15 was that my father told me at age 8: "You are paying your own way through college. And I am not co-signing a loan." Basically, you learn how to handle money at age 8 when the consequences are very small.

But now that student loans and parents paying for college are the norm, people don't learn how to handle money until they are adults and the consequences are huge, which means they really don't know how to handle money. People need to learn how to handle adversity when they are children, if you try to delay adversity until adulthood you've horribly wronged them.

[Akira]

"I know when I had a part time job at 15 I got a nice shocking lesson about economics and taxes in the real world"

Same here. I've been working since I was 14, and it taught me some valuable life lessons that are better learned sooner than later:

- If you work hard, work smart, and don't fuck things up, you'll get raises and promotions. If your employer doesn't give this to you, look for a new employer.

- Work is not like school; an employer is not likely to tolerate someone screwing around while complaining that stuff isn't fair.

- If you don't like the deal you get from your employer, increase the value of your skills.

I haven't met any of these special snowflake SJWs in person, but from what I hear them say at protests and stupid op-eds, it sounds like they were never made to get a job as teenagers.

[DesigNate]

To be fair, kids do get way more homework than I did growing up. And definitely more than they really need to.

It's almost as if teaching to a standardized test doesn't leave time for the teachers to, you know, actually teach their subject.

[Ship of Theseus]

How long before we enact FDR's 2nd Bill of Rights?

[Diane Reynolds (Paul.)]

You mean the UN Charter Bill of Rights?

[Enjoy Every Sandwich]

Hey man. This economics stuff is just stuff made up by those cis-hetero shitlords to keep people down, man! Oh man look at this cool YouTube thing! With cats and shit!

[Akira]

I know, isn't YouTube great?? There should be a government program to make it free! I mean, it's like a human right and stuff, man!

[Brian]

It's just great seeing people willing to take care of complete strangers, of whom they know practically nothing, while being absolutely certain of what's best for most of them in the long run, with practically no information whatsoever except feels.

Why don't we solve more problems like this?

[timbo]

You're right and since there is no cost or consequences, why not dictate people's lives based on sentiment so you can get votes.

If we run out money, we can just print more. This is the coolest job ever.

[Soave the Last Dance for Me]

I mean, progressives (with no self-awareness, but I repeat myself) always boo-hoo the gentrification of San Francisco. Why not forcibly gentrify the whole state? Bourgeois yuppies will have this beautiful state all to themselves! Perfect! Oh, we'll still talk the good talk for certain demographics, but at least we won't have to see them IRL. Yes I care about global warming, but I'm still going to fly this decked-out plane to Honolulu.

[Suicidy]

I say let them gentrify Anarctica. In fact, we should insist......at gunpoint. Then load them onto boats and send them there. One way.

[timbo]

One hundred million dollars....per hour.

I guarantee you that Bernie Sanders and Barack think that is possible.

It is safe to say that their level of understanding of market economies is about as sophisticated as a kid cramming a square block in a round hole.

Our lives are being dictated by a group of sub-humans who have the combined intellect of a meter maid.

[Soave the Last Dance for Me]

Leave Rita alone!

[timbo]

Sorry. The clerk at the water/sewer department then.

[Akira]

"It is safe to say that their level of understanding of market economies is about as sophisticated as a kid cramming a square block in a round hole."

You give them too much credit. I think it's more on par with a baby shitting on the floor and smearing it all over his bedroom walls.

[timbo]

God damn corporations.

If they create any more jobs, make any more innovations, or provide a pathway to wealth for any more people, I am going to protest.

[Akira]

I agree! They didn't build that! Those inventions and profits belong to The People?!

[timbo]

And if we could just get these greedy pigs to install a third bathroom in all of the buildings they stole, we can then attack the next horrible thing that they have done to me.

I hope we get to see that battle in the beginning of the original Terminator in real life before I die.

I might happen where I live tonight down on MLK.

[Altar'd Boy]

The comments in response to no minimum wage question were the worst "because people are monsters!"

[timbo]

people are the worst. I still can't figure out why they have to be paid a minimum wage since they are so bad.

[Soave the Last Dance for Me]

No surprise that that's their rationale. Leftists are fundamentally misanthropic elitists? people are stupid and those that aren't are cruel (themselves excepted).

[amandabvoelker]

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[Gaear Grimsrud]

Sounds like you beat that whole minimum wage thing.Good For You!

[Stephdumas]

Leftists said then the Big Mac elsewhere in less costly then the US but they got an higher minimum wage as RedState mentionned but the website The Meme Policeman try to debunk this case.

[nrob]

Oh, now I see why California is over $600 billion. Come to Canada and see why Ontario is $300 billion in debt, it will give a great contrast despite geography, as stupid truly does know no bounds.

[Eman]

we can't let canada win

[Julien Couvreur]

For those interested, I dug up the reference to the New Zealand minimum wage for minors, which the video mentions:

http://www.nbr.co.nz/article/l.....-ck-115419

[Eman]

that fat lady at the end is the dumbest. She admits she would accept less than minimum wage depending on the circumstances, and concludes it's really got to be illegal. I can understand a lot of ways being dumb, but not that one.

[Robert]

That one makes sense: There's no use in outlawing something nobody wants to do.

[Robert]

All of this is a consequence of there being far more employees than employers. Because of gains from specializ'n & economies of scale for capital, for efficiency's sake it couldn't help being this way. Therefore far more people have 1st-hand knowledge of being an employee than of being an employer.

People significantly overestimate the profitability of businesses, so they think employers could afford to pay much more. People are rarely in position to determine salaries, and view it as a take-or-leave proposition. They don't see payment for work as tied to making $ for the biz, but as if it were a reward for being good in some abstract way, like children's allowances. They think wages are based on relative ranking, so that if there were no legal minimum the lowest-ranked would make close to 0, and everyone else's increasing from there according to rank. So they figure that if the minimum wage increased, all wages would, because the same relative ranking would be maintained along with the same differentials.

Add to this the fact that in large businesses, things really do tend toward non-economic determinations, i.e. office politics.

[VartAndelay]

....They don't see payment for work as tied to making $ for the biz, but as if it were a reward for being good in some abstract way, like children's allowances.....

That is an interesting perspective. Thanks.

[JNP]

Think you might have nailed it here. It's as if some forget that if the business runs out of money, so do they. This really isn't a hard concept to grasp.

Leaving aside the fact that a business owner has all the right in the world to sit on millions in currency, one has to remember that those hefty cash reserves the owner may have for "nice stuff" might just be hefty cash reserves that keep one's ass employed in a hard downturn in an industry.

[Glide]

I'll give 'em this. They had their share of dumb, but the arrogant wasn't half as strong as I expected.

[AD-RtR/OS!]

$50.00 per hour sounds about right!

[Johnimo]

I'm definitely "pro choice" on the minimum wage. What the ignoramuses are truly saying is, in effect, "We don't want people to be free to negotiate their own wage. Eliminating the minimum wage would permit hundreds of thousands of folks to get their first entry level job and to begin learning the employment skills they will need to move up the economic ladder.

[Ayatollah Savaranola]

I would make it 100 pesos a kilohour paid in rubles.

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[VartAndelay]

The obvious answer is a hundred an eleventy !!

[antikbaka]

It's easy to advocate for a 15$ dollar minimum wage when it's not your job going to be cut, it's not your position going to be taken by an automatic robot.

But who cares if at this precise moment promises like these will give you extra vote. Millions of lifes in exchange for ambitions...

[carolflores0001]

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[Kevin Sorbos Manful Locks]

The part starting around 3:22 is... majestic.

[jbsnc]

Raise the CA state minimum wage to $30 per hour, that plus 20% in benefits would be about $72 thousand a year, average among US Federal and CA State employees but unknown wealth to 90% of the world. This would result in CA going under, reverting back to Mexico and a minimum wage of $0. Good.

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[Suki]

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[Cloudbuster]

It's dispiriting that not one single person thought there should be no minimum wage. I wonder what the result would be in a more nationally-representative sample. Probably not encouraging, because people have been propagandized to think of minimum wages as necessary for the past 80 years.

[JNP]

When these government and private over-financing bubbles pop, some of these people will be doing things far worse than paying someone $3.00 an hour.

[drijatheki]

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[Alice Adderton]

Oh, I'm not liking the term "unintended consequences" here. I think "unstated consequences" is clearly more appropriate, and what I encourage be used whenever possible. After all, if I were actually to try to increase unemployment, stifle economic activity, and increase my political power over a growing dependent class, then I would definitely be trying to institute and constantly increase a minimum wage. I'm just not going to STATE that, but the INTENTIONS are clear.

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[meister574]

Please make a part 2 for this video in Compton or Inglewood. Or outside of LA like out in the high desert or in the central valley.

[Uncle Jay]

RE: How High Would You Make the Minimum Wage? We Asked L.A. Residents.

I'm sure all the taxpayers in Kalifornia are glad they have spent billions of dollars in public education.
Otherwise the respondents to this survey would look really stupid.

[Thad]

We should establish the minimum wage at $0, but increase it 10% each year until it is double the average hourly rate. Everyone should make at least double the average wage.

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[Rhywun]

I would follow up with "Which people do you think don't deserve a job?"

[Trshmnstr, terror of the trash]

something something eggs something omelet.

[The Other Libertarian]

HIV was made for that one specific guy. How is he still alive?

[Half-Virtue, Half-Vice]

Mhmm that would be a masterfully done follow-up.

[Jerryskids]

The only jobs lost under this will be those shitty jobs that only pay minimum wage, and who wants shitty jobs? Aren't we better off if everybody who has a job has a good job? Why do you want people to have shitty jobs? Doesn't everybody deserve a good job?

[dchang0]

Make it better by showing individual photos of all the workers at a given fast food restaurant and asking him to choose which ones to fire.

[DesigNate]

Well since it's an old guy from California, I'm gonna go out on a limb and assume he doesn't mind if some minorities loose their jobs. For progress.

[Harold Falcon]

"But look what happened to the cook!"

- Miss Peacock.

[Harold Falcon]

"But look what happened to the cook!"

- Miss Peacock.

[atheistrepublican]

No. My first job, in high school, paid (legally) less than the federal minimum wage. Didn't hurt me any; I was a student living at home. A one scoop cone cost 21 cents back then.

[LarryA]

Except if no one does the shitty jobs toilets back up, garbage piles up, .lawns go unmowed, fruit goes unpicked...

[Haha, charade you are]

I knew it! Donald Trump was Mr. Body all along.

[Cap'n Krunch]

That's why we import millions of illegal, unskilled, uneducated foreigners every year, to do the jobs we pay unskilled, uneducated Americans not to do.