Why is the minumum wage in America so law -$5.00? Is this fair?

Question

Should it not be increased.I noticed while the democrats wanted to increase it the Republicans shot it down.

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Answer 1

IN THE STATE OF WASHINGTON THE MINIMUM WAGE IS $7.25/ HOUR, ONE OF THE HIGHEST IN THE NATION. UNFORTUNATLY WASHINGTON IS ALSO HOME TO SOME OF THE HIGHEST PERSONAL TAXES IN THE NATION. THE HIGHEST GAS TAXES IN THE NATION TOO. SO WHAT GOOD DOES IT DO. YOU COULDN'T LIVE ON THE MINIMUM ANYWAY

Answer 2

Both the Democratic position and Republican position are completely based on politics... with no actual basis other than to cater to their respective bases.

I consider minimum wage to be a pretty bad idea.
It disrupts the free market at a point that needs no such disruption.

Without a minimum wage, jobs would be payed what the market could bear.

With a minimum wage, the market has to adjust.
This creates a ripple effect through the whole economy.

To Illustrate:
Let's say, everyone in America was making the minimum wage, and that wage was $5.00.
And let's say milk cost $2.50 a gallon.

If you eliminated the minimum wage, and everyone was then making between $2.50 and $3.00, the price of a gallon of milk would lower to about $1.25-$1.30. This is because THAT would be the price the market could bear. On the flip side, if the average price of a gallon of milk went UP, so then would the average wage.

That is of course, just an illustration... the actual economy of America is huge and includes MILLIONS of prices. (All of which are currently effected by each other AND minimum wage)

-Jon

Answer 3

I agree with applechick... raising the minimum wage doesn't put enough money in the pockets of the working poor to make much of a difference, can cause inflation to rise, and puts a big dent in the profits of a small business.

If I own a restaurant and have 50 employees, and have to give them each a $0.25/hr raise, each one will have $10 more per week before taxes... roughly $7 after taxes or $28 a month. But as an employer, I have to pay $500/week in higher wages...$2000 a month. Plus increased FICA and insurance.
And most small business owners simply cannot afford this increase.

Answer 4

Yes, it's $5.15/hr at the federal level, but states have the ability to raise it higher anytime. The $7.25/hr wage mentioned earlier, for example, is in Maryland.

The concept behind wages is complex and controversial. Of course you can raise it, but drastic changes in a short amount of time can cause undesirable effects. When wages are higher than they should be, the market responds with higher unemployment, increased inflation, and slow GDP growth. These are all things that the Federal Reserve Commission pays close attention to. When they are too low, poverty is generally more prevalent while business growth/wealth are at all-time highs.

Right now, I'd say we're pretty close to seeing another raise at the federal level. I expect that it will jump to around $6.50 to $6.75 per hour, and that's a conservative estimate.

Raising the wage doesn't solve problems as others will also mention, but when wages go up, it's a sign that the economy is very strong. It has reciprical, lagging effects on the stock market in a positive way.

Answer 5

Increase of minimum wage causes a spiral of short term inflation as companies try to get their bottom line back up after the increase in wages. It usually takes 6 months to run its coarse at the end of which people who were on minimum wage will be right back where they started and people above minimum wage have their standard of living lowered.

An increase in minimum wage really does not benefit the regular people, it only increases taxes that have to be paid to the government. The only real winner in a wage increase will be the government.

I've been through a few wage increases and it is the same every time. The day wages go up, the price of goods increase.

Answer 6

It is fair. "Minimum wage" is another way of saying minimum education and value to the workforce. A job that basically requires a warm body with little or no education and skills doesn't deserve of great deal of pay.

For the most part, America is not a socialist nation. The government does not micromanage every part of the economy and the way we live our lives. The USA is still a place where people earn what they are worth. The more valuable a person is and the more a person produces increases his salary. Or a person has the option to strike out on their own and run their own business.

Answer 7

We haven't raised the minimum wage since 1997. It should at least be raised with cost of living increases. An increased minimum wage won't break the economy - it would just piss off some well-heeled, influential corporations. So we don't change the minimum wage. Mustn't offend the corporations!

Of course, Congress has given itself roughly $30,000 in raises since the last minimum wage increase. Go figure.

Answer 8

It's $5.15/hour. Think of what that extra $.15 could buy!

There's a huge gap between "minimum wage" and "living wage". The minimum wage can't support a family; it barely supports one person.

Each state/county/city has its own minimum wage, depending on the cost of living there.

Fun fact: The intent of Congress when initiating a federal minimum wage was to assure "the maintenance of the minimum standard of living necessary for health, efficiency and general well-being of workers" through the minimum wage.

How's that workin' for ya?

Answer 9

Increasing minimum wage won't solve any problems. Raising minimum wage will simply raise the cost of any product that comes in conflict with rising worker wages.

And of course Democrats want to do it.... They implemented the system, they want to keep it around. Raising minimum wage may put more money in the pockets of Americans (theoretically), but it can also have adverse effects on the economy.

Answer 10

Fair/unfair are relative concepts. Europe has a higher minimum wage, but higher unemployment.

Think of minimum wage as something like rent control. It only distorts the free market - a system America for better or worse has chosen to embrace.

Answer 11

It should be increased. Try living on minimum wage.

Why was it shot down? Because big business in this country supports the republican power because of thier anti working class stance.