What happens when minimum wage goes up?

Question

Serious answers please .

Oregon increases their minimum wage by 25 cents every year. Now Oregon's minimum wage is $7.50. Oregon is nation wide second highest minimum wage.
How a State decides to raise mimum wage, based on what?
What are the financial and economical consequences for setting minimum wage so high?
What it does to the productive labor force?
What impact it has on the small business owners?
High minimum wage, does it damage or create more jobs considering the state's unemployment rates?

Thanks in advance.

FYI : Oregon doesn't have Sales Tax!

Answer 1

The reason intelligent people are against the raising of minimum wage(or min wage all together), is because when you raise the minimum hiring wage you force the business owners to take the blow to their profits, which they are not going to do.
You not only have to pay the basic unskilled worker coming in the door more per hour but by nature all skilled workers are going to want a raise by equal increments.
Not to mention the price of ever day good will go up. Your hamburger at McDonald's will be $10(exaggerated a little)
This is a political trick usually by Democrats to "buy" votes from the poor and uninformed. It sound good to raise wages, but it doesn't work. The free market should decide what a good wage for a good job is.

Answer 2

When the minimum wage goes up individuals have more spending power and the money is recirculated in society. By creating increased wealth, the local economy is stimulated. To show a small example:

Someone who earns a small wage can't afford any luxuries. If they have some extra disposable income they might go to the hairdresser, join a sports club, go see a movie etc, and this helps keep all of the people in these areas employed. Providing the minimum wage isn't set ridiculously high (and $7.50 isn't that high) then it creates sustainable wealth as all those people buy goods and services.

This also means that workers are not exploited by their employers as they must be paid fairly.

Answer 3

Following the most recent increase in the minimum wage in 1996-97, the low-wage labor market performed better than it had in decades (e.g., lower unemployment rates, increased average hourly wages, increased family income, decreased poverty rates). Studies of the 1990-91 federal minimum wage increase, as well as to studies by David Card and Alan Krueger of several state minimum wage increases, also found no measurable negative impact on employment. Finally, a recent Fiscal Policy Institute (FPI) study of state minimum wages found no evidence of negative employment effects on small businesses.

Plus, more families will be able to be off the welfare roles, and will become consumers, thus helping the economy. (A family cannot support itself on just minimum wage.)

Answer 4

minimum salary, even as denoted in 'money' would not extremely propose 'money'. What it skill is identifying to purchase potential. inspite of this very last strengthen contained in the federal minimum salary the identifying to purchase potential of this salary is 40 to 70 cases below it became in the course of the Nixon administration. What this skill is that a m/w worker in the present day does a similar paintings for plenty a lot less money. it really is often said as the prostitute's fallacy! Even those who oppose any sort of minimum salary ought to agree that there is a significant unfairness aspect there. so a options as 'going out of company' is worried, the biggest market employing minimum salary workers is the quick nutrition market. preserving wages mid determination or above market criteria hasn't damage them, and besides, maximum states now set state minimum salary above the federal aspect. In my city right here in Arizona, out and in Burger set their placing out salary at $8.00 an hr. so a options they have made a ton of money and in view that the wages in this 'proper- to-paintings-for-no longer something' state are so low everywhere else you genuinely get good service there because the employees genuinely paintings. there's a shy away to a livable minimum salary, yet known for the monetary device and society often its a good aspect. i propose it.

Answer 5

Cost of living determines raise in wage.

It costs more to hire employees if you have to pay more.

Small business owners may not be able to afford raises and may have to let some people go.

Minimum wage is just one component of a state's economy. Politics affects local economies more than wages.

Answer 6

Minimum wage goes up, so will taxes and the cost of living.

Answer 7

my father in law owns a few small businesses, and said he will have to raise his prices to cover it..... so if everyone does that , then what was the point of raising minimum wage?

Answer 8

when minimun wage goes up inflation increases.

Answer 9

when minumum wage goes up.. taxes will go up!