Comment 75431

By A Smith (anonymous) | Posted March 25, 2012 at 06:45:48

Talking about pay, here are some fun facts...

U.S. minimum wage (40 hr week) as a percent of U.S. GDP/capita.

1950 - 80.6%
1956 - 80.0%
1963 - 79.7%
1968 - 73.4%
1974 - 59.3%
1978 - 53.5%
1990 - 34.1%
1997 - 35.1%
2011 - 30.9%

If the current U.S. minimum wage matched even 1974 levels, it would go from $7.25/hr to $13.93/hr. It would be $18.94 if they wanted to reach 1950 minimum wage rates.

Ontario's minimum wage of $10.25 divided by Ontario's GDP/capita is 44.59%. Using Canada's GDP, it works out to 42.28%.

Australia's current ratio of minimum wage to GDP/capita is 55.93%.

If Canada matched Australia's minimum wage/GDP per capita ratio, it would be $13.56/hour. If we wanted to use 1950 U.S rates, Canada's minimum wage would currently be $19.54/hour.

Unemployment rates

Australia - 5.2%
Canada - 7.4%
U.S. - 8.3%

I used to think that minimum wage hurt employment, but I think I was wrong. If rich people are simply hoarding large parts of their incomes, there needs to be a way to bring this cash off the sidelines. A higher minimum wage likely does just that.

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