Originally Posted by FishingRod
With the computerization and mechanization over that time we have fewer people being more productive. Perhaps a simpler question would be how has the minimum wage risen in comparison to the cost of living?
Originally Posted by FD
It seems like she is just asking why entry level wages have failed to keep up with labor productivity. In theory, wages should track labor productivity perfectly, and they have until about 30 years ago when they began to lag behind.
Its an important and interesting question and its far from settled. I suspect I would come to a different conclusion than her as to the answer, but pasting her question out of context and giving a misleading headline doesn't really get you anywhere.
Eh, as FR suggests....mechanization, technology, and globalization cloud the productivity/minimum wage correlation here. If Warren is doing what politicians tend to do--demagogue their pet issue, she can be charitably said to be "taken out of context," not meaning to say what critics accuse her of really saying.
If on the other hand, she actually believes she is making some profound point about a real disparity between cost of living and the minimum wage, she is gravely mistaken--at least according to a CPI plus inflation calculator.
Minimum wage in 1960 was $1.00; today it is $7.25. The 1960 value of $1.00 would translate into $7.84....far from Warren's attempt to portray a startling disparity.
Simply put....either she is being intentionally disengenuous; or she's stupid. Since she's pretty clearly not stupid, she's simply being a typical politician.