A commenter to a recent post seems to be confused as to what the problem is. If a person tells me that they don’t understand a concept that I am putting forward, I will always take the time to fully explain my position.
Let’s start with my original statement:
CVS announces that they will no longer have education requirements for jobs that don’t require a government license. They will also be increasing wages by 36 percent for the uneducated morons they will be hiring. Those who DID get an education? Not so much.
Divemedic
Guy then replied (after a bit) with this:
I guess I’m lost on where this is bad. If they’re no longer requiring a degree where not required by law they’re allowing people with actual life skills who may not have gotten a useless degree (useless as in, not required for a job) to get employment they could be qualified for.
And not saying they’re heroes, or that I want minimum wage increases, but a company voluntarily giving more money to people in the low end of their payscales seems to be good, unless you’re assuming they’re all fat black shaniquas. Some might be just, ya know, people.
Guy
So to understand why I have a problem with this, you need to understand what is happening. The company has announced that they are going to pay people without skills $30,000 a year simply for showing up to work, where they used to pay $22,000 a year for the same skillset. That represents a 36% increase. For reasons that you should already understand, this policy is inflationary.
The people who already work there and who already have skills and experience will receive the same minimum. This is known as pay compression. It isn’t happening because of the free market, and CVS isn’t doing it out of the kindness of their heart. It is happening because of the nationwide push for a $15 minimum wage, and because the Federal government is demanding that anyone getting Federal dollars do so. Remember that Medicare and Medicaid rule the medical field in this country.
This completely removes incentive for anyone to gain in skills or experience.
In 2000, a new paramedic in the Orlando area was starting at $14 an hour. New medics now are starting at $13 an hour. As these minimum wages increase, it will soon be that there is no reason for a person to go to the two years of school that it takes to become a licensed paramedic. Why? To get the same money as a person who didn’t even finish high school?
Some would argue that, in a free market, paramedics would get more money. The problem is that it isn’t a free market. Ambulance companies are paid by Medicare and Medicaid. The reimbursement rates for ambulance rides haven’t increased to keep pace. There is no room for pay raises.
So to sum it up, increasing pay at the bottom end without a corresponding increase above that means higher prices, stagnating wages, and is overall bad economically. It also serves to remove incentive for an educated workforce. This is the reason why the Indians and the Chinese are kicking our asses when it comes to the STEM and medical fields.
Guy, your earlier attack on education by equating all education with gender studies tells me that you likely don’t have an education. (If I am mistaken, please accept my apologies, I am not trying to offend.) All education isn’t gender studies. There are plenty of STEM, medical, and other degrees that are needed and important. Not only those, but trades and skills are important if this nation is to not slide into third world shithole status. We can’t all be high school dropouts who only work at retail and service jobs, but that is exactly where policies like this one will take us.
Policies like this tear at that educational foundation and will see this nation slide into savage obscurity.
