Minimum Wage Raise - Good or bad? (1 Viewer)

[Skip]

Is the upcoming hike in the federal minimum wage from $5.15/hr. to $7.25/hr., to be phased in over two years, a good thing or not?

 

[Synch]

This is really bad, the effects will be most insidious in places with low costs of living.

 

[Navy Pride]

I believe yhe federal government should stay out of the minimum wage business and it should be left to individual states....

 

[Iriemon]

Is the upcoming hike in the federal minimum wage from $5.15/hr. to $7.25/hr., to be phased in over two years, a good thing or not?

To the poorest workers, struggling to get by on subsistance level incomes, this is a wonderful, fabulous thing that will improve their lives significantly.

To the rest of society, there will be a marginal, insignificant effect.

 

[Synch]

To the poorest workers, struggling to get by on subsistance level incomes, this is a wonderful, fabulous thing that will improve their lives significantly.

To the rest of society, there will be a marginal, insignificant effect.

And to the persevering poor high schooler, struggling to resist the temptation of dropping out and working, this will draw him out of school and deprive society of a more productive worker.

To the aspiring small business owner residing in an area with a low cost of living, who will now be unable to start/maintain his business due to being near the top of the economies of scale and unable to compete with big businesses, will cheer another fabulous victory to Wal-Mart and apply for a job there.

To the marginally unemployed, who were struggling with a low income before, will now live off welfare and add more to the nation's deficit and society's burden.

And to those who sing Kumbaya around the campfire, another blindly heartwarming victory.

 

[Iriemon]

And to the persevering poor high schooler, struggling to resist the temptation of dropping out and working, this will draw him out of school and deprive society of a more productive worker.

Not everyone in society has the stuff to be a college or even high school graduate. For that sake, society needs certain workers to do jobs that don't require an MBA. I personally don't see hordes of kids dropping out of school because the minimum wage increased to 7.25. I am not aware of this phenonema happening regularly in the past.

To the aspiring small business owner residing in an area with a low cost of living, who will now be unable to start/maintain his business due to being near the top of the economies of scale and unable to compete with big businesses, will cheer another fabulous victory to Wal-Mart and apply for a job there.

Doesn't Wal-mart have to comply with minimum wage laws?

To the marginally unemployed, who were struggling with a low income before, will now live off welfare and add more to the nation's deficit and society's burden.

I don't see this as a particular concern where unemployment is at sub 5% levels.

And to those who sing Kumbaya around the campfire, another blindly heartwarming victory.

If they were folks making less than $7.25, you bet.

 

[Navy Pride]

To the poorest workers, struggling to get by on subsistance level incomes, this is a wonderful, fabulous thing that will improve their lives significantly.

To the rest of society, there will be a marginal, insignificant effect.

But it will also increase unemployment.........Also it will raise prices causing inflation..........

Example: Burger King pays and entry level employee $6.00....... A burger costs $5.00..........Minimum wage is increased to $7.50.........A buger costs $6.50......any raise in the service insdustry will be passed on to the consumer...........

 

[Iriemon]

But it will also increase unemployment.........Also it will raise prices causing inflation..........

Example: Burger King pays and entry level employee $6.00....... A burger costs $5.00..........Minimum wage is increased to $7.50.........A buger costs $6.50......any raise in the service insdustry will be passed on to the consumer...........

Again, the potential for job loss seems low when we have an unemployment rate of 4.5% which is historically low.

I questions the underlying assumptions of your example. Inflationary pressure on goods overall is likely to be marginal, as I do not believe that those making sub 7.25 wages constitute a major portion of the workplace.

It maybe true the rest of us have to pay a bit more for a hamburger so that those workers on the very bottom rung of society can have a decent existence. A fair trade, IMO.

 

[Topsez]

I see absolutly no reason for the government setting a minimum wage... it would be like the government setting a maximum wage... a wage is between the employee and the employer and the government should mind its own business, worry about federal wages and associated funding within their control.

Watch the debate on CSPAN and see the first words out of the mouth of politicians of "Non Farm Payrolls" Does anyone know what the minimum wage is for farm workers? Last time I checked it was around $2.55 yet both minimums are not the governments business. But to me having two different standards is like saying Non Strait or Non Gay or Non Native born or Non white or Non Black... get the idea?

I clearly remember my dad complaining when a cold soda went to $0.07 up from $0.05 and then the bottle was worth $0.03 ... We are lucky to have plastic to pay for stuff today because raising the minimum wage only increases the cost of everything without lifting up any citizen in the same effort.

 

[1069]

I see absolutly no reason for the government setting a minimum wage...

One of the functions of a government is to protect the powerless and underprivileged from victimization at the hands of the powerful and privileged.
That's why.
It's to protect poor unskilled laborers from being victimized and taken advantage of by unscrupulous employers and business owners.

it would be like the government setting a maximum wage...

No, it would not.

 

[Kandahar]

Doesn't Wal-mart have to comply with minimum wage laws?

Yes, but Wal-Mart is more able to comply than small businesses. That's why the CEO of Wal-Mart came out in support of a minimum wage increase...not out of concern for the poor, but because he wanted more business.

A 10-man coffee shop with a budget of $150,000 is not as able to pay higher wages as, say, Starbucks. If you increase the minimum wage, those who can't afford the higher costs go out of business entirely...and those who can (the large corporations) take over the market.

 

[jujuman13]

Quote
(To the poorest workers, struggling to get by on subsistance level incomes, this is a wonderful, fabulous thing that will improve their lives significantly.)

Short term, perhaps, long term, NO WAY.

If your argument were true then at or rather after the last time Minimum wage was raised by Government, those poor would have benefitted to the extent it would have taken them out of the povert trap, yet clearly this has not happened.
Wage increases (even over 2 years as phased in) still have to be paid for, this means that every product or service that relies on the so called poor will have to rise in cost.
This extra cost can only be recouped by those that provide the product and or service from those that consume or use the product service.
So you see, what you have in effect is a vicious circle, costs rise, inflation rises, which in turn means that Minimum wage needs to rise to pay for these increases.
Quote
(To the rest of society, there will be a marginal, insignificant effect.)
Not true, whenever a product or service costing rises, this rise has to be recovereed by the provider by raing the cost the Tax take rises, so the eventual cost rises much more than the wage increase would suggest it should.

Short term, raising minimum wage pleases the poor, such that they will support those Politicians who brought it in.

Long term, folk are greedy they always want more.
In the end NO GAIN.

 

[Topsez]

One of the functions of a government is to protect the powerless and underprivileged from victimization at the hands of the powerful and privileged.
That's why.

Then why does it discriminate against farm employees? I can see the government establishing a work week of 40 hours and the requirement for paying overtime standards but other than that there is nothing fair about the FLSA.

It's to protect poor unskilled laborers from being victimized and taken advantage of by unscrupulous employers and business owners.

That is border patrol and immigration's job.

So if a guy started out in a warehouse at $5.15 and worked well and showed up for work and was increased to $7.25 and the government increases the new guys pay from the minimum to his wage it would be my bet someone wants a raise or they would feel like they just got demoted.

In micro economies around military bases the same is true... the soldiers are given a pay raise and the prices go up on rent, dry cleaning and right on down the line until the raise is neutralized by increased prices... the only winners are the home and property owners because they can increase rent or don't have to pay more on the mortage, everyone else loses. The same is true of minimum wage labor jobs under unions like Detroit auto industry... hayseed goes to Detroit with eighth grade education and joins the union and walla $24 an hour in 1967 but the same non union school dropout working in the area says give me some of that so it goes just like military situation. Like I said the sodas used to cost $0.07 in my lifetime, a pair of Levi's were $3.00... if poor people are used to $3.00 jeans and they go to $50 or more because the politician wanted to help them out then they should go smack the politician.



No, it would not.

 

[Patrickt]

"Short term, raising minimum wage pleases the poor, such that they will support those Politicians who brought it in."

Most of the poor aren't working minimum wage jobs. In fact, most aren't working. A small percentage of the people working minimum wage jobs are poor.

The worst effect of raising the minimum wage is to lure more marginal students out of high school.

 

[Navy Pride]

Again, the potential for job loss seems low when we have an unemployment rate of 4.5% which is historically low.

I questions the underlying assumptions of your example. Inflationary pressure on goods overall is likely to be marginal, as I do not believe that those making sub 7.25 wages constitute a major portion of the workplace.

It maybe true the rest of us have to pay a bit more for a hamburger so that those workers on the very bottom rung of society can have a decent existence. A fair trade, IMO.

If I had your money I would feel that way too but a lot of people rely on cheap prices at fast food place to live...........

Don't kid yourself a lot of small businesses will have to lay people off to cover the increase in wages..........

 

[Navy Pride]

460619]One of the functions of a government is to protect the powerless and underprivileged from victimization at the hands of the powerful and privileged.[/B]
That's why.
It's to protect poor unskilled laborers from being victimized and taken advantage of by unscrupulous employers and business owners.



No, it would not.

That is total horse ****.............The government is there to protect and defend this control, not support liberals from cradle to grave.........

 

[Navy Pride]

"Short term, raising minimum wage pleases the poor, such that they will support those Politicians who brought it in."

Most of the poor aren't working minimum wage jobs. In fact, most aren't working. A small percentage of the people working minimum wage jobs are poor.

The worst effect of raising the minimum wage is to lure more marginal students out of high school.

Exactly, entry level people and senior citizens to supplement their retirement........

 

[1069]

If I had your money I would feel that way too but a lot of people rely on cheap prices at fast food place to live...........

.

Sorry, Navy, but I find it highly unlikely (and rather comical) that anyone "relies on cheap prices at fast food places to live". :mrgreen:

If things are that dire, then you should apply for state or federal aid, food stamps, a Lone Star card or whatever your state's equivalent of that is.
Then you could go to the grocery store and get yourself some nice, nourishing, wholesome food.
Nobody ought to be "living" on fast food, cheap or otherwise; fast food is a luxury item, like booze and cigarettes and chocolate... and like those items, it isn't very good for your health, and is certainly detrimental to partake of on a regular basis.

 

[nort_12345]

the raise in the minimum wage is good because people who are paid the minimum wage can earn more money. it is very hard to live on minimum wage. many businesses that pay their employees mg treat their employees like ***** anyway. *cough* *wal-mart*. the big bosses of the business are making millions every year. so you might say that the price of products will go up, but those fat cats should take a little out of their huge pockets to help out the little guys.

 

[Real Korimyr #9]

Absolutely useless. All the minimum wage does is make it harder to get a job and make everything more expensive.

The vast majority of workers in this country, including teenagers with after-school jobs, are making more than the minimum wage. You think anyone making $7.15 an hour-- which is still well below the poverty line-- is going to get a raise when this happens?

If you want to help the working poor, get them health insurance and affordable child care-- and cut taxes on things everyone has to buy, like food, gasoline, and housing.

 

[Caine]

I don't see a problem with it.
I think all of your concerns are getting blown way out of proportion.

And, if your looking for someone to blame IF prices go higher and people get laid off over this, don't blame the politicians, blame the corporate heads, they are the ones who need to be able to buy that 7th Mercedes-Benz of the year.....

 

[Caine]

If you want to help the working poor, get them health insurance and affordable child care-- and cut taxes on things everyone has to buy, like food, gasoline, and housing.

lol.. Affordable child care...

I can't even afford child care, And I make well over the minimum wage.

Health insurance? Free? EVIL!
Health Insurance through employer? Too damned expensive.
I shell out 300 a month in health insurance, THROUGH my employer..

 

[CaptainCourtesy]

If you want to help the working poor, get them health insurance and affordable child care-- and cut taxes on things everyone has to buy, like food, gasoline, and housing.

I absolutely agree with this line of thinking.

 

[Real Korimyr #9]

And, if your looking for someone to blame IF prices go higher and people get laid off over this, don't blame the politicians, blame the corporate heads, they are the ones who need to be able to buy that 7th Mercedes-Benz of the year.....

I agree, and I believe that something needs to be done to bring them to heel. We've allowed corporations-- which must be registered and recognized by the State-- to become increasingly more powerful since the founding of this country, with Presidents dating as far back as Jefferson expressing alarm at their ability to subvert our free society.

However, raising the minimum wage does not solve any of these issues, and even were corporate executives not gouging us and receiving utterly asinine compensation packages, the problems of the minimum wage are simple economics. It's bad policy and the Democrats should know better; unfortunately, it's popular, feel-good policy.

 

[Real Korimyr #9]

I can't even afford child care, And I make well over the minimum wage.

Exactly.

Health insurance? Free? EVIL!
Health Insurance through employer? Too damned expensive.
I shell out 300 a month in health insurance, THROUGH my employer..

The health insurance issue is probably the best example I can think of pure fabrication on the part of special interests. The ridiculous myths that people are willing to believe on this issue-- against their own best interests-- are absolutely astounding.

Worth noting that every single country whose nationalized healthcare system is used as an example of how "grossly inefficient" government healthcare is has higher life expectancies and lower rates of infant mortality than we do. It's also worth noting that healthy workers are more productive and that healthier people-- and people whose potentially debilitating illnesses are caught quickly-- are less likely to need public assistance.

And yet, this useful policy is rejected and relegated to the Leftist fringes while nonsense like raising the minimum wage is applauded.