Explain Like I'm Five

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ELI5: Why should a minimum wage worker care about GDP growth? (self.explainlikeimfive)

submitted 1 month ago by Tamo240 to c/[email protected]

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Following the budget announcement in the UK, why is the media obsessed with the predicted growth being 0.2% lower, instead of applauding the much needed investment in our public services? Does it really matter that much?

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[–] [email protected] 7 points 1 month ago* (last edited 1 month ago) (1 children)

So... Regardless of county, I would say minimum wage workers should not worry about the economy. Instead put that energy into finding a career path of some sort.

That's not me bashing minimum wage workers, it's just ... the best thing a minimum wage worker can do to improve their circumstance.

Worrying about the GDP or stocks or anything else isn't particularly helpful, especially if you're living paycheck to paycheck (which at least in the US where I live, most minimum wage workers are).

Even for middle and upper middle class, worrying about GDP growth and how the stock market is doing day to day (unless you're on the verge of retirement and trying to time cashing out stocks) is not a particularly helpful exercise.

Maybe it has some abstract effect on what social services you get or whether your employer survives another year... but you can probably find better indicators of that (e.g. in the days where computers were reducing paper usage, it should've been increasingly obvious that working at the paper mill probably wasn't going to be a great long term plan).

[–] [email protected] 12 points 1 month ago (1 children)

Individualism to it's core. The only reason people with minimum wage are struggling is because rich white guys always told them to not worry about it, just try to find a better job. ( While worrying about stagnating minimum wages groth, privatizing government programs, inflating bubbles so they can pop and deregulating protections)

Nah, don't worry about it.

[–] [email protected] 1 points 1 month ago* (last edited 1 month ago)

People typically aren't stuck on minimum wage because the powers that be won't let them have a decent wage. Most adults are not on minimum wage ( in the US, less than 2% as of 2022; in the UK, low pay accounts for less than 4% as of 2024 ).

There's something to be said for the rich taking advantage of folks, but ... bothering worrying about abstract rich guy metrics like making the GDP go up is not going to help anyone get out of their situation.

Sure, focus on other aspects of politics like making education affordable, strengthening unions, etc things that will help you achieve your goals or help you once you've achieved your goals. However, there's a lot one can directly do to address their situation that's a lot less abstract than "vote for a representative, to write a bill, to potentially help you, to possibly get passed by your legislature, and possibly get passed by your executive branch (or your equivalent process)."

... and even then that latter concept has little to do with "why someone on minimum wage should pay attention to the GDP."