Currently in dispute is the issue of minimum wage and those who want it to be increase to a paltry amount of $15 an hour. I still say that those who want a mimimum wage of $15 an hour have not exactly figured out how they can live independently off of that amount. Why? That's only $2,400 dollars a month before taxes. If you're looking for a place to live, rent along with the other utilities will take up a great portion of that check easily unless you get several roomies to bunk up with you. Including other expenses and necessities in life, means that the $15 an hour for minimum wage is not an adequate amount to be self-sufficient on.
The minimum wage is established by certain indicators of economic value regarding the supply and demand of labor, the cost of labor, business growth and cost, and inflation, just to name a few.
The fair labor standards act of 1938 included a standard of minimum wage. This act is referenced to employees and children or minors employed by way of interstate commerce or production of goods for commerce. Several years later, in the early 1960's this law was amended to include workers in schools, hospitals, and governments. Hence, this became the standard of pay for working people.
Since wages and worth are "determined" by man or woman made decisions, it may be inappropriate to place a classification of "amount" on an individual when doing work or employed in a religious capacity because the values or blessings upon such work may not compare. To to pay a worker who works in a religious capacity a salary would be a must in order to survive. But, hey what religious employer want's to be accused of persecution, really? Minimum wage, maybe not! Sure, a civil court may determine the value or work of a person in amounts of money or what is said to be a fair amount in payment due to unfortunate circumstances. But, again that is the act of a man made court and system and not the powers of the creator who assembled this world along with workers and a myriad of people, creatures and things for the spectrum of existence.
Neoclassical economics is based on the determination of prices and income distribution by competition and equilibrium; by focusing on constraining income of employees and constraining costs of employers. This could explain how works are paid a lot less and compaines reap much of the profit. This in itself creates a society of competition by way of wealthy or poor; since wages dictate market profits due to spending in the economy. If people do not have the money to spend then the equilibrium of the economy for most will remain poor due to the low output of wages earned by the a majority of people. This would mean that for neoclassical economics to work in modern times, the wealthy would have spend more money by buying more than one blender, a few American cars, several hot item appliances(even if you never use them or take them out of your car) in efforts to keep the economy afloat by spending. Neoclassical spending only benefits other countries because the wealthy or well off often travel; so they are not around to do some serious spending or enough spending in the USA to maintain upward equilibrium in the economy. Neoclassical economics also further diminishes the economy by competition in profits by outsourcing work and those that become unemployed as a result eventually have to take some form of work once unemployment stops paying; these people with jobs eliminated by competition usually end up taking jobs with their wages drastically reduced. Equilibrium is established this way between rich and poor. But, definitely not suitable for an American economy and people whereby income and opportunity should be for all.
Neoclassical economics is outdated because:
It creates more low income and minimum wage earners- the less you earn the less you have to live off of and save for retirement.
It increases the cost of welfare or social service programs- with not enough money to use for the necessities you have to go to the government to get the rest.
It increases the continuance of creating more low paying jobs- golly, the job market is practically full of them which leads to that cloudy(work) and rainy(retirement) future which was once so sunny and bright.
It creates a disproportionate amount of "white collar" jobs which are jobs that are professional, administrative, managerial, corporate as compared to "blue collar" or manual labor jobs regardless of education or applicable work and experience- wow, that means that any and all intensified study went to no good, because I was just given another collar by the "man" and sent off to the fields anyway.
What is needed is an adaptation to the theory of classical economics:
Classical economics involves the theories of value and distribution, that the value of something would depend on the cost of producing and distributing it. When the term "minimum wage" is used, there should be a value associated with the cost of producing the employee that would determine if he or she should be considered for minimum wage or exempt. This means that a person with a bachelors, masters, doctorate(and all of the other degrees or disciplines) and experience has a cost or wage associated to them because of the intellectual level of the person. An employer may hire that person for a job that was not within his or her major but the intellect obtained with a person of such credential would make them worth a lot more than minimum wage although you are not paying them a salary of a CFO(Chief Financial Officer). Once the USA begins to put a value on education and experience it will begin to diversify and create "white collar" jobs in every aspect to accomodate such people and not cheapen the education and person by "blue collar" and menial, manual labor and low paying jobs. The equilibrium of the economy will balance out due to the balanced nature of decent jobs and wages that enable people to spend and depend less on the government. True, years ago people did not pursue higher education of any form and may not have completed high school since employment was based on skill; so education or intellect of, is not getting it's value in worth or salary, as pertaining to the level of the employee. The government gets involved because, it must now assist a lot more people with survival as humans because neoclassical economics negates the value of a person regardless of education or experience.
Who knows, maybe someday with all this implementation and what not people can do the caprice classic economics thing!