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Why Do Wages Rise?

Why Do Wages Rise?

Many individuals think the only course to greater earnings is to place in even more job hrs, yet there are really lots of financial aspects that enter into determining the number on each employee’s income. Watch this brief video clip to find out more! Donate today to Prager U! This video clip becomes part of a collective company as well as business economics job with Job Creators Network as well as InformationStation To find out more, see GetPrager U perk web content absolutely free! DownloadPragerpedia on your apple iphone or Android! Thousands of resources as well as realities within your reaches. apple iphone: Android: JoinPrager United to obtain brand-new boodle every quarter, unique very early accessibility to our video clips, as well as a yearly To wnHall telephone call with Dennis Prager! JoinPrager U’s message checklist to have these video clips, cost-free product free gifts as well as damaging statements sent out straight to your phone! Do you go shopping on Amazon? Click as well as a percent of every Amazon acquisition will certainly be given away to Prager U. Same terrific items. Same low cost. Shopping made significant. CHECK OUT Prager U! FOLLOW us! Facebook: Twitter: Instagram: Prager U gets on Snapchat! SIGN UP WITH Prager REQUIRE! ForStudents: JOIN our Educators Network! Script:. The health and wellness of an economic climate can be determined utilizing a selection of signs. Common ones consist of the joblessness price, month-to-month task development numbers, as well as GDP– or the complete worth of all items as well as solutions created in an economic climate over a provided year. But a much less regularly made use of, although extremely essential, indication is wage development. While it might not be the initial point ahead to mind when thinking of the economic situation on a bigger range, wage development is straight connected to points like sales efficiency at shops as well as dining establishments, changes in the real estate market, as well as can also enhance the standard of life. And when it’s your earnings rising– it ends up being extremely essential. Because as earnings climb, Americans invest even more cash. But the concern is, what creates earnings to climb? Well, there are a number of points that affect wage development. Number one. Employers merely have even more revenues so they are economically able to elevate employee settlement. These added funds can be the outcome of an enter company efficiency– triggered by a walk in sales or a public law modification– such as a decrease in the tax obligation price. Number 2. The market for labor ends up being a lot more affordable. This scenario can occur when the variety of task openings exceeds the variety of individuals seeking work– a situation described as a firm of the labor market. The absence of readily available employees pressures organisations to contend over task prospects by outbidding each various other with rewards, like greater earnings, far better working problems, even more getaway time, as well as various other advantages. Number 3. Typically, earnings climb with ability as well as experience. Whether the ability or expertise is obtained from a typical college organization, profession institution, or merely from on-the-job experience, wage degrees will certainly change based upon the need for these particular qualities. The guideline? More education and learning as well as experience in an area with space for development equates to greater earnings. Wage degrees can transform for a variety of factors, yet one point is for certain. When the economic situation is doing far better as well as joblessness is reduced– earnings will certainly get on the increase.
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Chris Johnston - posted on October 2, 2018 4:27 pm

Someone posted this as a rebuttal in another forum. I'm curious what supporters of this video think.

1. Tax cuts to the wealthy in the so called trickle down theory of economic growth is largely a farce as the wealthy individuals and corporations benefiting from these tax breaks use the extra profit for reinvesting in stock or for personal bonuses to ceo's etc.

2. Neo-liberal globalism ensures a saturation of available employees leading to competition for the lowest livable wage, as corporations move production to unregulated countries where labor is cheaper.

3. The demand for custodians and factory workers will generally be lower than the demand for surgeons and astronauts, so to say one must reach for higher education to see a livable wage is effectively allowing the lower class, whom is necessary for the proper function of society, to remain in poverty with no chance for growth.

Resurgence Of The Shadow Dragons - posted on October 2, 2018 4:51 pm

Equally important however, is that the entry requirements for the field in question are sufficiently limiting in order to derive a more limited potential worker population, thereby driving up the value of work provided, and the importance of it.

If you have the proper credentials, background, and of course the backing of previous employers to say as much, to work as say a Director of a Lab Company, your potential earnings far exceed those of the local McDonald's Manager. It's not always about the difficulty of the work either, it usually comes down to the amount of raw knowledge needed to rise to that level, and/or relative competency needed to maintain it once there. I would argue that many if not most labor jobs are intrinsically more difficult than most office jobs; that is not to say these persons working these positions would definitively be able to properly perform in a job that while technically 'easier', requires a completely different skillset and more thorough understanding of a differing subject.

Persons with an exceptional background in business, economics, and are great at collaborating with others to accomplish the day to day needs of a mega-business, tend to become CEO's and whatnot (there are various, high level positions in the company that are similar in power to the CEO, and pay, which are not usually as well known, i.e. the VP's, Directors of very profitable or big Branches, etc.). They usually have a very stressful job, whereas the Construction Worker tends to be more stressed out about not making enough to cover their expenses, the CEO is stressed about not making enough to cover the cost of the Workers' jobs.

Sazy Plew - posted on October 2, 2018 7:11 pm

I feel this should’ve been a 5 minute video and have included interest rates and inflation; otherwise you’re hiding the real story bc reported wage growth is not the real income increase an individual experiences and this video distorts the facts! A person’s wage may go up but that’s doesn’t mean more disposable income to spend of vacations.

Sazy Plew - posted on October 2, 2018 7:32 pm

Hey PragerU, are you willing to do a vid on why tips should be abolished. I’m going to hedge you may not agree that restaurant owners should pay their servers at least minimum wage &/or based on the quality of the establishment and tips should be eliminated bc that means proprietors would profit less and passing the responsibilities to the consumer is in their best interest, BUT you have to agree what, when, where, and who you tip has certainly gone awry. I don’t mean awry from the initial reason tips came to be (Two examples: One, for blacks and poor who were not “employable” long ago and had to work the trains, bars, etc for free and only had tips as income. Two, for the wealthy to flaunt their wealth to others.), but to how the expectation of tips have flooded into many different businesses and without good cause. I work in an industry where most in my business expect tips. If a client doesn’t tip my colleagues provide that client with poorer service the next time around; some drop them as a client. I charge what I’m worth, what the market supports, what’s required to maintain my practice, and in some instances what a client can afford; everyone receives my best effort whether s/he tips or not.

The Dracobirthstonian - posted on October 3, 2018 12:54 pm

But… I thought democrat stuff like higher wages was stupid?

Tracy Jarchow - posted on October 3, 2018 4:22 pm

How about the number one reason wages rise? The value of the dollar continually going down (inflation). Wages MUST rise to keep employees from taking a cut in pay value.

justin fwibber - posted on October 4, 2018 8:38 pm

Before video:
Short answer, they don't.

After video:
They don't, even though shit keeps getting more expensive.

K Edmodson - posted on October 5, 2018 7:15 am

They don’t. Wages in the UK have hardly risen since 1997. This correlates with Tony Blair’s open doors policy with the EU. Closing the EU door will see wages start to rise again.

Duane Theimer - posted on October 6, 2018 8:38 pm

Two kinds of socialist. The uber rich and the citizen reliant on the government. Most people work for what they have and don't fall into either. How's that gonna work out????

thelongs27 - posted on October 7, 2018 6:12 pm

Thats great and all but it still doesnt address that the government changes the meaning of what unemployment is, or the AI and robotic revolution that is taking place… like most videos on the internet PragerU is just another that doesnt take an unbiased look at the whole picture.

mazibukomail - posted on October 8, 2018 2:32 am

WHY do wages rise? Strong Unions

John C - posted on October 8, 2018 9:03 pm

Great video. And, then there are the entitled millennials who don't want to work harder. So, they cry for government to raise the minimum wage. Yet, they fail to realize that doesn't force businesses to pay them more. It merely causes them to automate more and get rid of the jobs worth less than that set minimum wage. Thank you leftists for speeding up automation and also for raising the entry bar for employment. That especially hurts the homeless and anyone who lacks in skills and experience, such as recent high school and college graduates. The higher the minimum wage, the more you have to be worth to a business to get a job. If the minimum wage is $6/hr., then you only have to be able to provide $6/hr. worth of labor to a business to get a job. If the minimum wage is $15/hr., then you have to be worth that to a business to get a job. Guess what, most people's first jobs are not going to be worth $15/hr. My first job paid $8. Then, I went to $8.50, then $9.36, then $10. Now, I'm making around $26/hr. If the minimum wage had been $15 or even $10 an hour for me, then I would never had even gotten this far.

Garrik Cook - posted on October 9, 2018 3:31 pm

Cough – coal industry here in the US is not growing despite tax cuts and deregulation of the EPA.

WKBostian - posted on October 10, 2018 1:07 am

They don't in America. I'm still waiting for our hero of a president to do something about that, but I'm not naive enough to hold my breath.

Mister Valentine - posted on October 10, 2018 6:17 am

End immigration and wages will rise.

Artificial245 - posted on October 10, 2018 3:07 pm

If leftists succeed in making college free, your college degree will be as worthless as your free high school diploma. It is a strategy deployed by the leftist elite to expand control beyond the poor and uneducated.

Sam Schoenecker - posted on October 11, 2018 2:43 am

Prager U also mention that when the unemployment rate dips under 3 percent it starts to cause inflation due to there being more M1 “money” in the economy so relative to price of goods wages start to go down after unemployment goes below that 3 percent mark.

Kevin Walker - posted on October 12, 2018 3:55 pm

Rent goes up , Tuition goes up , Electronic Goods go up , Most things go up

except wages for most people . I'm open to be proven wrong .

MBEEZIE01 - posted on October 13, 2018 3:29 am

This is the third video I have watched from PragerU and it seems their mission is to purposely misinform the public, I'm lost. This video for example, acts as if wages have kept up with the cost of living or inflation. Then why the fight for $15? Why is it so difficult for average Americans to pay their bills? The staff at PragerU is out of touch with reality, i guess so they can continue to sit comfortably while the rest just barely get by. Wow. That 1.7M subscribers must be part of that top 10% of households that bring home $150k annually.

John Smith - posted on October 13, 2018 6:02 pm

Highest productivity and profits in decades, yet, wages haven't grown. MUH CAPITALISM.

Mr Dane - posted on October 13, 2018 9:09 pm

And what happens when wages rise? Prises rise. Because when McDonalds have to pay higher wages, they have to charge more for a BigMac. So your higher wage is eaten up by higher prises

Brandon Frame - posted on October 14, 2018 7:07 am

That was too short

Dillon Felty - posted on October 17, 2018 2:59 pm

Wages also rise and more benefits are gained for workers when they decide to unionize and hold the company responsible for sharing their increased wealth from increased production because of those workers.

Melaine White - posted on October 18, 2018 4:36 am

Utter garbage. PU indeed.

Ngan Khong - posted on October 25, 2018 4:31 am

This visual demonstration is too confusing lol

Alton Bradley - posted on October 29, 2018 8:02 am

I had my social security disability cut by $200/mo because of these assholes….

American guy - posted on November 9, 2018 3:00 am

I can’t believe the president is going to raise the minimum wage to over $12 an hour

Ladiesman2000 - posted on November 13, 2018 3:39 am

I actually recieved a raise

TheBeat lol - posted on December 2, 2018 12:13 pm

What if there is an unemployment rate of under 1%?
And what if there is an unemployment rate of more than 15%?

Anthony Jongco - posted on December 7, 2018 11:39 pm

In response to lowered taxes leading to increased wages, a counter example would be in our current century I believe wages stayed flat, in fact most of the money went to Wall Street. Trickle down theory does not work, especially for the burger flippers, it lines the pockets of business owners instead. It makes more sense that wages rise with competitive labor markets for talent (data scientist v. Burger-flipper) and increased experience. I feel my first generation upbringing believed school would lead to a competitive job, that American dream left with the Baby Boom generation when college degrees were scarce in the job market. Now Masters and PhDs are the new Bachelors plus experience.

The Rookie - posted on December 21, 2018 11:20 pm

As I see it the national minimum wage should keep up inflammation.

Will M - posted on December 30, 2018 2:17 am

They dont

Will M - posted on December 30, 2018 2:18 am

Profit rates fall naturally

Will M - posted on December 30, 2018 2:18 am

Wages have remained static despite increases in productivity

Alex Kim - posted on January 2, 2019 3:54 am

Here how not to increase wages, increase the minimum wage

dan randall - posted on January 22, 2019 8:56 pm

Well in the case of labor , no raise for 20 years. How come? Lots of Hispanics, Polish , Eastern Europe labor who work for 2 bucks less. Cause business needs a bailout.

troll jones - posted on March 15, 2019 8:21 am

As wages rise Americans spend more money

This depends on who's wages we are talking about here if you mean the Ultra rich it is the opposite of that as they tend to hoard their money more then common folk.

Sharann - posted on April 23, 2019 10:31 pm

Number 4 if productivity raises real wages grew along that

TGOTR - posted on June 26, 2019 8:54 pm

Shit, my employer when Trump lowered taxes on the rich, froze wages and pocketed the profit.

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