Big Mac Attack

In the face of walkouts by fast-food employees, and negative publicity over the “budgeting advice” provided by McDonalds to its workers, opponents of a higher minimum wage have  gone into high gear, warning that jobs will be lost and prices will rise precipitously if the minimum wage is increased.

What–they ask in ominous tones–would a Big Mac cost if the workers preparing and serving it made 15.00 an hour?

As it happens, we know the answer to that.

The Economist Magazine created and maintains a “Big Mac Index,” making it possible to compare the price of Big Macs in different countries with different wage scales. In Australia, where the minimum wage is 15.00 and the minimum wage for fast food workers is, for some reason, slightly higher–on July 1st, the fast food rate went up from $17.03 an hour to $17.98 an hour–a Big Mac costs 70 cents more than it does in the U.S.

Salvatore Babones is a senior lecturer in sociology and social policy at the University of Sydney in Sydney, Australia, and an associate fellow at the Institute for Policy Studies in Washington, D.C.. As he explained in a recent interview, 

What you get for that in Australia is you get to go to a fast food restaurant where you know that everybody behind the counter has full health insurance, everyone behind the counter gets a really good wage, they’re treated well, and they have, you know, options in life…

What about the argument that raising the minimum wage necessarily means fewer jobs?

There’s a theory that raising the minimum wage will result in fewer jobs. And that theory seems to make intuitive sense, that when wages are higher, you know, people hire fewer people. And in isolation that would be true. There’s an assumption economists like to make called ceteris paribus, which means all other things remaining equal, this would happen.

 But all other things are never equal. For example, if you raise the minimum wage, people make more money. That’s the first thing that’s not equal. As people make more money, they spend more, they pay more in taxes. The entire character of the economy changes.

As Babones points out, study after study confirms that no matter how “intuitively” persuasive the argument that raising the minimum wage will depress employment, it is an argument that has no empirical support. In the real world, it doesn’t work that way.

Interestingly, Australia was also the only rich country to dodge the Great Recession.

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Is This Possible?

It is something akin to an article of faith that white senior citizens are the backbone of the GOP–that they will troop reliably to the polls to support the Grand Old Party even as it regresses into an anti-reason, anti-science cult.  It is overwhelmingly my age cohort (aka “old farts”) that watches Faux News, votes religiously (in both senses of that word), and constitutes the loyal and irreplaceable base of the Republican Party.

I have resigned myself to the probability that improvements in American political life won’t occur until the over-65 generation dies off.  Of course, that inconveniently includes me, but hey–it is what it is. I routinely apologize to my students for the mess my generation is  bequeathing them.

But then I read this! Is it possible?

Carville-Greenberg, the Democratic polling operation, has recently reported growing disaffection with the GOP among the elderly.

We first noticed a shift among seniors early in the summer of 2011, as Paul Ryan’s plan to privatize Medicare became widely known (and despised) among those at or nearing retirement. Since then, the Republican Party has come to be defined by much more than its desire to dismantle Medicare. To voters from the center right to the far left, the GOP is now defined by resistance, intolerance, intransigence, and economics that would make even the Robber Barons blush. We have seen other voters pull back from the GOP, but among no group has this shift been as sharp as it is among senior citizens.

According to Carville-Greenberg, seniors voted for Republicans by a 21 point margin (38 percent to 59 percent) in 2010, but among seniors likely to vote in 2014, the generic Republican candidate leads by just 5 points (41 percent to 46 percent.) Seventy-one percent of seniors disapprove of the Republicans in Congress. Only 28% of seniors view the GOP favorably, down from 43% in 2010. During that same period of time, seniors’ approval of Democrats actually rose three points, from 37% to 40%.

More than half (55 percent) of seniors say the Republican Party is too extreme, half (52 percent) say it is out of touch, and half (52 percent) say the GOP is dividing the country. Just 10 percent of seniors believe that the Republican Party does not put special interests ahead of ordinary voters.

These numbers, if accurate, reflect a sea change in a constituency that has been the GOP’s most dependable voting bloc.

Evidently, when a party gets crazy enough, even its most loyal foot-soldiers begin to notice.

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Cyber Promises

Yesterday, I shared an internet frustration on my Facebook page. I was surprised–and gratified, in an unfortunate sort of way–with the responses.

Some background: A couple of years ago, someone persuaded me to join LinkedIn. After a month or two of “membership,” I decided that–whatever its merits–the site was not for me. So  I tried to leave–to “recuse” myself, as we lawyer types would say.

No way.

I tried everything. (Okay, every mechanism an old woman with limited internet skills could think of.) Nothing worked. I was a “forever” captive of the site.

Eventually, I gave up. I left my “membership” with LinkedIn, and simply ignored the occasional invitation to connect. But it gnawed at me. I felt impolite–rude–when I ignored an invitation. I wanted to reach out the the person issuing the invitation and explain that I was not declining to be friends or even “connections,” I was simply not participating in this cyberspace exercise.

The other day, when I received three invitations from Linked In, I realized that something needed to be done. So I posted a “just in case you are one of those I’ve ignored” all-purpose apology. And the floodgates opened.

I heard from a large number of people who shared my frustration. A couple of them also shared my guilt, and the impulse to explain “nothing personal” to those they ignored. I’m gratified to learn that I am not the only person in this predicament, but frustrated with yet another situation in which a tool intended to make life simpler/easier instead makes it more complicated.

The internet is a wonderful advance. I can’t remember life without google, and I wouldn’t want to go back.

But they don’t call glitches “bugs” for nothing. They sure bug me.

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It’s Who You Know

There’s an old saying to the effect that it isn’t what you know, it’s who you know. There’s a lot of truth to that, and it’s why cities are so important.

The other day, I read one of those pious rants from a privileged old white guy–it may have been Charles Koch–about how the minimum wage is bad for poor people because it makes them dependent. It’s easy enough to mock people who see no connection between the government goodies they enjoy–the business subsidies and tax breaks and the like–and government rules that benefit poorer folks–but these lectures betray another aspect of their cluelessness. I’d be willing to bet that Charles Koch and his ilk don’t really know any poor people.

They may have servants who are poor, of course. But that’s a lot different than living in a economically diverse neighborhood, or riding public transportation with an assortment of city dwellers, or having your kids go to school with children from varied backgrounds.

Even in cities, of course, we see increasing economic segregation. But there was a lot of truth to that wonderful old rant The Urban Archipelago —

Look around you, urbanite, at the multiplicity of cultures, ethnicities, and tribes that are smashed together in every urban center (yes, even Seattle): We’re for that. We’re for pluralism of thought, race, and identity.

The real virtue of urban diversity is that it bestows a larger framework for understanding the world and the variety of people who populate it. If your only contact with “poor people” is on television or through the writing of ideologically compatible pundits–if you view “them”only from the comfort and distance of your gated community,or through the window of your air-conditioned Mercedes– it’s easy to make assumptions about their lives and habits.

Many years ago, when my sons were in high school (Tech, in downtown Indianapolis), a girl began calling my middle son every night at dinner time. After the fifth or sixth time, annoyed, I indulged a sexist stereotype and snapped “Tell her to stop calling you, that boys call girls; girls don’t call boys!” To which he replied, “But mom, I can’t call her. Her family doesn’t have a phone.”

I don’t think I’d ever known anyone who didn’t have a telephone. But my sons’ lives and moral imaginations have been immeasurably enlarged because they did.

Stereotyping of all kinds depends on ignorance. That’s true of racial and religious stereotyping, and it’s equally true of economic stereotyping. The virtue of cities is that “smashing together” of real human beings–a smashing that makes it harder (not impossible, but harder) to substitute assumptions about other people for actual knowledge of them.

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And Now a Word from Our Sponsor…

As you can see, my website/blog has been updated. (I would say I’d updated it, but that would be inaccurate–my tech whiz son, who does this for a living, did the work.)

This may be a good time to explain my approach to this whole blogging thing.

You may have noticed that I rarely weigh in to the sometimes lively conversations taking place in the comments section. There are several reasons for that: unless the discussion turns on a totally erroneous read–a clue that I’ve not been as clear as I’d hoped–my preference is to allow commenters to “talk amongst yourselves.” Plus, I have a day job that doesn’t leave me a lot of time to engage in lengthy discussions.

I am grateful to commenters who point out factual errors, or provide missing context to a discussion. And I try to resist the temptation to block the folks who are unpleasant when they disagree with me. (I do wonder about people who consistently visit and comment on a blog written by someone with which they vehemently disagree–do they think angry ripostes will change my political perspective? But hey–whatever floats your boat!)

The one rule, which I fortunately have had to invoke very few times, is no name-calling. Arguments and disagreements are fine, even when somewhat less than polite, but when people post invective, especially invective aimed at other commenters, I will block those posts.

I have really enjoyed the back-and-forth, the illuminating information, and the thoughtfulness that most of my commenters display. I’m delighted when my often snarky observations can spark a real conversation. I hope you all like the new format–and I especially hope you will all continue to visit.

Now, back to our program…..

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