Comments on: IN RETROSPECT: Minimum Wage: Political Sense = Economic Nonsense

By: Fer De Lance

Fer De Lance — Mon, 30 Jun 2014 18:23:31 +0000

Governments cannot create or affect the positive growth in the economy, it driven by the private sector, what the Government did do is destroy any possibility of a quick recovery. The idea of a minimum wage is not possible, it will do even more damage than the VAT is doing.

By: SLU #1

SLU #1 — Sun, 29 Jun 2014 16:51:56 +0000

Why are we in such deep horse crap if Kenny has so many “SMART” advisers? How many units of work do all the high-paid consultants produce ? Do these units of work have any tangible “positive” effects on the economy ?

By: M

Sat, 28 Jun 2014 22:21:53 +0000

At aerospace – you don’t understand the subject under discussion, so you are fearful of it. That’s why you lash out and dismiss a trained economist. It looks like you’re the one who needs to invest in a little more quiet time…

By: king majesty (@kingmajesty3)

king majesty (@kingmajesty3) — Sat, 28 Jun 2014 16:27:35 +0000

In reply to cswaerospace.

Well said !!

By: Daniel

Daniel — Sat, 28 Jun 2014 15:05:15 +0000

In reply to cswaerospace.

We can disagree with one’s point of view without the insults. Let’s have constructive dialogue and contribute something by doing so.

By: artofsilk58

artofsilk58 — Sat, 28 Jun 2014 13:04:35 +0000

Wage increase equals cost increase, so the only conclusion is that if you want to increase your wages you will have to accept the ofsetting of cost with job cuts. You can’t have your cake and eat it too, St. Lucia is broke and owes too much. This idea of a wage bill will make the VAT look like the pope.

By: LuciaBoy

LuciaBoy — Sat, 28 Jun 2014 11:08:07 +0000

Cont..

subject to the forces of demand and supply. In this current economic climate demand for labour is very low and the supply overwhelming. Last I checked we have a free market enterprise system where the invisible hand sets the equilibrium price. Be guided lest we throw out the baby with the bath water.

By: LuciaBoy

LuciaBoy — Sat, 28 Jun 2014 10:58:14 +0000

Cont..

flat rate irrespective of industry. A banana farmer as opposed to a hotelier? Valmont as opposed to a Mom & Pop store? These are all factors that must be taken into consideration which makes this a not so clear cut issue. If the intention here is to wipe out worker exploitation, while noble it would be impractical. Worker exploitation comes in many forms and it is a moral issue which cannot be legislated. At what cost of compliance? So it is one thing to look at this issue from a strictly academic point of view, another to see it as good public policy, but implimentation, execution, and enforcement presents far greater challenges and implications. Wages as anything else is…

By: LuciaBoy

LuciaBoy — Sat, 28 Jun 2014 10:42:04 +0000

cont…
are all impacted. The dilemna is that workers must not be allowed to rely on the benevolence of their employer nine times out of ten the workers’ interests are not well served. in the same token a minimum wage is equivalent to price control and that comes with unintended consequences. The matter becomes controversial in determining the price (or wage). Are we looking for a fair wage? By whose standards? Fair to whom? Is it a living wage that we are aiming for? That is a higher standard and who determines the datum line and what factors come into play in that determination? What about the employers ability to pay and the impact on profitability? Will the minimum wage be set at a…

By: LuciaBoy

LuciaBoy — Sat, 28 Jun 2014 10:29:28 +0000

In a more advanced economy a minimum wage policy can work and is even more justified when the economy flourishes and businesses are enjoying greater profits so a revision upwards of the minimum wage is both morally and economically sound. The emotional arguments for an increase in wages are usually not based on evidence of profitability and productivity gains. Most employers are loathe to open their books to workers unions and even when some do you still may not get the accurate picture. Money is a great motivator to a worker and a smart employer will try to keep a faithful and productive worker happy. It’s good for business as employee morale, productivity, customer relations,…

By: cswaerospace

cswaerospace — Fri, 27 Jun 2014 21:08:03 +0000

Dr. Raymond, with all due respect boss man, is your hand in Kenny’s back pocket by any chance??
It is quite evident that you have absolutely no idea what the general population of Saint Lucia has to endure in this country.

My Grandfather used to say: If you have nothing positive to say, at least Shut Up.

By: Daniel

Daniel — Fri, 27 Jun 2014 04:26:36 +0000

The question you should ask is whether the amount you started the employee at was fair value for the output.

By: patrik bernard

patrik bernard — Fri, 27 Jun 2014 03:56:33 +0000

Actually Dr. Raymond has erred a bit with his statement “The only way an increase in the wage rate can be justified is if the employee produces more units per hour.”

A wage increase can be well justified even if an employee does not produce more units. I would like to point out that if an employee can create a greater profit from those same units, a wage increase can also be justified.

By: Woodsman

Woodsman — Thu, 26 Jun 2014 20:02:31 +0000

* correction disregarded …

By: Woodsman

Woodsman — Thu, 26 Jun 2014 20:00:45 +0000

Are you saying then Ubie that production capacity is the only or key factor for determining wage increases. With such reasoning, the following should thus be disregard as longs as it cannot be proven that one’s productivity has increased:
– Additional qualifications
– Inflation
– Experience
– A country’s level of economic development
– The profitability of a business

Something tells me you would not be invited to a CSA function soon ha ha ha 🙂 🙂 :).