Why do people stupidly believe that raising the minimum wage is a good thing?

Question

What's with all the people who stupidly cheer when the minimum raise goes up? Are they really so ignorant as to think it's "free money?"

When you raise the minimum wage, every company in the U.S. raises their prices to cover the extra employee costs that the government has forced on them. Everything you buy goes up in cost. So all you're doing with a minimum wage increase is artificially inflating prices. Minimum wage was never meant to support a family. It is merely a starting point for entry-level employees.

The funniest example I can give for this was when I managed a store in a mall. The day the minimum wage increase went into effect, a female employee of mine was rejoicing. When I tried to explain why it was a bad thing, she didn't get it. Then she went to lunch. She came back all angry that Chick-Fil-A had raised the price of every menu item between 25 and 30 cents. I laughed and explained it to her again. Her response? "That's not fair!" The blind finally saw.

Answer 1

you hit it right on, i don't understand it myself. i guess you just can't fix stupid.

Answer 2

Minimum wage is a double edged sword, unlike the first person to answer your question you seem to have somewhat of a grasp on it. It is good in that it prevents employers from paying too low of a wage. Any increase in the minimum wage is followed by an increase in the cost of living, i.e. businesses raising prices. The more employers are forced to pay their employees the more they are forced to raise prices and cut the hours of their employees. Any benefit that would come from a wage increase is offset by the increase cost of living and reduction of hours, so nothing is really gained. In Washington state the minimum wage is 7.93 an hour and increased every year according to inflation. One of the more unsound decisions the voters of this state have made. The only time the increase helped is when it first became law and minimum wage went from 5.15 to 6.50 an hour in the middle of the year. But that doesn't really concern many people these days, all they can think about is getting more money in the pockets of the poor. But if the cost of living keeps going up what good does that extra dollar do?

Answer 3

So true! I'm an extreme liberal, but I can't see it either. Not only does it contribute to inflation- but there's also a place for minimum wage jobs. Minimum wage jobs are meant for people who aren't "earning a living"- but people who are just adding a few dollars for extras or by high school kids- as part of their learning.

The problem is that there are too many jobs that pay only minimum wage. Not every job in this country should be a minimum wage job, and right now they almost all are. Adults who are earning a living should be paid enough/hr. to get by with a job that is only 40hrs./week. But they can't when every job out there is a minimum wage job and that's all they can find.

I have a master's degree and have usually earned barely what is minimum wage today because I worked as a teacher and then as a social worker. Our countries priorities are pretty messed up if you ask me. I could earn more at Burger King or McDonalds today then I did as a mental health case manager in the late 1980's. Neither was/is a livable wage.

Answer 4

This is a sad but true statement. However, the problem is that companies take advantage of this and do not pay their employees properly. I know people that worked minimum wage for many YEARS. They were not entry level any more. They got a quarter raise in five years. That is enough to survive--RIGHT. Of, course it is not.

However, I have heard many statements showing that in earlier times (decades ago) that in comparison the minimum wage was much lower and inflation fell. The economy was strong.

So, we are not all as educated as well as we could be.

Nothing wrong with your comments though. Have a good day!!

Answer 5

Initially, good for the employee, but, as you say, in the long run, bad for the buying public ( prices are raised) or the employer (doesn't raise prices, but has to pay higher labour).

Having said that, employers, especially in the fast food business, claim that increased wages hurt their ability to turn a profit. This is generally not the case! Food and labour costs generally run 60-65%, franchise/royalty fees 5-10% and the rest of expenses run 5-10%. Most well run business' will generate a 10% bottom line. You don't often see a poor owner, unless they cannot run an effective, profitable business.

The best way for all to benefit is to work a deal where the employees see a percentage of profits end up in their own pockets (profit sharing). this will encourage the employees to take an interest in the profitability of the store, without the owner paying higher wages. Everyone will benefit when the profits go up. All of a sudden, upselling rises dramatically, as do the profits.

Answer 6

Wow! Chick-Fil-A responed to the rise in the minimum wage the very same day it went into effect! That's remarkable. What's also remarkable is that they raised everything 25-35 cents. Sounds like they covered the increase in their labor cost about 10-20 times. This story sounds apocryphal to me. It also sounds similar to how gas companies are great at raising prices immediately to meet market conditions, but when the same conditions warrant a price reduction it takes them a few months to get around to it.

If your only concern is the effect on prices, them I'm sure you are a huge fan of immigrant labor that has no minimum wage at all, right?

Answer 7

Prices are going to go up anyway. Raising the minimum wage is not a bad thing.

Answer 8

they are probably relating the wage increase to leagal and illegal aliens.however i believe the minimum wage is 6.50? ive worked for that and more and less but if the wage is increase so will food in mcdonalds jack in the box and many othe non food services increase. i think this idea is viewed by hawks who think that war is a game and dont ever think about the collateral damage done nor about the lives of men and women in the military.

Answer 9

prices are going to go up no matter what. if minimum wage didnt go up then ppl would be going in the hole. and i dont think that it is right to be called stupid when you feel that you are going to make more money. if you didt get more and didnt eat at chick-fil-a you wouldnt be spending those extra 25-30 cents. just look now gas prices are outrageous. have i seen any extra money being put in my pocket to be spent on gas ... NOPE! all i see is money that i could be spending on clothes, laundry detergent, grocerys... that pot is deminishing so that i can put gas in my car to go to work to make money that i will never see!

Answer 10

So according to Repuglicans...
WHY EVEN HAVE MINIMUM WAGE?

Americans would love to work for free!
Now THAT would jump start
Bush's lousy ecomony numbers, eh!

All Repuglicans...
will now work for free!

Those who scream...
but minimum wage will bring up
the prices....ummmm....and the
rising cost of gas doesn't?

Answer 11

I hope your not at economics major prices go up because of demand and supply not because of minimum wage.