Ur Getting Fatter posted:

The concept of “if you make more money you actually make less money” is so counterintuitive that you can’t help but be impressed by the confluence of malice, stupidity and greed that has gone into making people believe this.

Dr. Eldarion posted:

Especially wrong since apparently labor is < 10% of the price of milk.

Dr. Eldarion posted:

Especially wrong since apparently labor is < 10% of the price of milk.

Phanatic posted:

Again, for the nth time, there are absolutely situations where that is in fact the case. A number of programs do phase out as you make more money and/or even have hard cutoffs at a given income level. Which means yes, there are cases where a marginal dollar of income means you actually make less money. For example, the student loan deduction, which is capped at $2,500 and starts to phase out if your MAGI is above $65,000 if you're single and then disappears entirely at $80,000 MAGI. SNAP is like this, as you earn more money you get fewer benefits and there's an eventual cliff where a marginal income of a dollar results in no benefit at all. Same thing for CHIP and a number of state social programs. EITC works like this (although the phaseout is more gradual and there's not as big a cliff).

Marginal effective tax rates can be huge for certain income levels. Although the recent tax changes helped this a bit.

spwrozek posted:

No one is crying if your MGAI is 80k and you can't get a student loan interest deduction. Pretty much in every case you always should make more money.

spwrozek posted:

No one is crying if your MGAI is 80k and you can't get a student loan interest deduction. Pretty much in every case you always should make more money.

The Slack Lagoon posted:

My mom manages a facility a d had a worker that was really good so she wanted to give them a raise and the worker asked her not to because he would lose section 8 housing but she gave the raise to them anyway and they quit

Residency Evil posted:

Please speak for yourself tia.

tater_salad posted:

this is what most people dont' understand.

Well if they raise minimum wage everything will be more expensive.
Generally if you raise minimumwage a dollar the cost to sell teh good may go up 10-20% of the wage increase.

Dr. Eldarion posted:

Especially wrong since apparently labor is < 10% of the price of milk.

Dr. Eldarion posted:

Especially wrong since apparently labor is < 10% of the price of milk.

Phanatic posted:

What if you're a single mom of two kids in Chicago and making $31k/year and don't want to see your housing assistance disappear if you get a raise to $16/hour?

Begath posted:

Do you still have the source that the graphics came from? I'm curious to read more.

brugroffil posted:

IPI is right wing trash that helped drive Illinois into the ground under our previous governor, for anyone who isn't familiar.

Think heritage institute or CATO.

Simpsons Reference posted:

https://forums.somethingawful.com/forumdisplay.php?forumid=46

22 Eargesplitten posted:

Reported for backseat modding outside of your subforum

tater_salad posted:

this is what most people dont' understand.

Well if they raise minimum wage everything will be more expensive.
Generally if you raise minimumwage a dollar the cost to sell teh good may go up 10-20% of the wage increase.

r/personalfinance posted:

If you're already deep in student debt, is law school the right move?
Asking for someone who isn't me. It's about general advice about whether to go to law school or not.

They graduated from undergrad college 65k in total debt (5k credit cards, 60k student debt) from undergrad.

They used to work for a paralegal job and had accumulated about 5k in savings. They then quit their job to prep for law school. They used up all their savings on law school applications and living expenses.

They now have $30 in savings. They have $5 in their debit account. Still 65k in debt. Their only source of disposable income is the 5k that they can borrow further on credit cards.

Now they work part-time for a lower paying job and have just enough to pay for food and their bills (e.g., debt payments). They have already put down a deposit at a law school.

The average amount of net tuition they will pay is about 170k to 180k at law school. However, this could be greatly diminished if they perform well (e.g., top 40% or better in the class). It is unclear whether they will accomplish this in the more competitive field with other law school students. The law schools are low tier.

I know they definitely want to be a lawyer and the paralegal position gave them a good sense of what it entails, and they want to help people via law. They showed very strong aptitude as a paralegal. I think they also view a job as a lawyer as a way out of debt. I'm just worried that even after becoming a lawyer their salary won't be high enough to escape the debt cycle (i.e., payments on bills will be too high). And their hope of being able to move past their debts will never come to fruition. Although in their perspective, it's just another bill to pay and they can just do income-based debt payments (i.e., they don't have to pay more on their debt until they are making more).

Edit: The undergrad loans are private, the law school loans are all federal.

tl;dr: If you're deep in student debt, how do you determine if you should still go to law school? Or if you should just try to make the best without higher education?

RC and Moon Pie posted:

BEHOLD: MY CAPE posted:

Yes, the arguments that goods and services will become more expensive if minimum wages increase to meet local living standards are generally true to some extent although almost always made in bad faith to argue against living wages

BEHOLD: MY CAPE posted:

Yes, the arguments that goods and services will become more expensive if minimum wages increase to meet local living standards are generally true to some extent although almost always made in bad faith to argue against living wages

quote:

American Airlines is giving pay raises to its pilots and flight attendants, who have complained they are paid less than peers at other airlines. Wall Street isn't happy.

The raises come about two years before contract negotiations. Assuming they approve the increases, pilots and flight attendants will receive additional pay totaling close to $1 billion over three years.

At a time when American and other airlines are seeing higher costs for labor, fuel and maintenance while finding it difficult to raise airfares, this goodwill gesture didn't sit well with investors.

"This is frustrating. Labor is being paid first again. Shareholders get leftovers," Citi analyst Kevin Crissey wrote in a note to clients.

Krispy Wafer posted:

Increasing the minimum wage generally raises prices and/or lowers employment for the most unskilled of workers. That doesn’t mean the effects are permanent or that they’ll always occur, but all other things being equal there is a negative impact along with the positive.

Those cities out West that have raised the minimum wage without any bad ramifications also benefited from doing it during the longest economic expansion in US history. It doesn’t always go that smoothly. That’s not to say it isn’t a good idea. Raising the federal minimum wage is usually done in stages so if they boosted it to $15 a hour it’d probably take 3 years to reach that point. That’s plenty of time for employers to figure out how to pay for it.

MomJeans420 posted:

Why would you quit your job and deplete your savings to "prep" for law school? The most you'd need to do is take the LSAT, and you can easily prep for that in your free time.

StormDrain posted:

Which also means $15 is too low of a goal, by the time we get there it should be higher.