Raising Minimum Wage is okay?

Question

It may be good to those are on minimum wage. But to those who just made a cent above minumum wage will be much unfair because companies won't raise their wages. Only those who are minimum wage

Answer 1

Raising the minimum wage is an economics catastrophe. By setting a price floor for labor we eliminate the ability of the market to regulate wages. When the minimum wage rises, prices inevetiably rise, thereby eliminating the "gain" the raising the wage intended in the first place.

Example: Let's say Minimum goes to $10/hr. Now McDonald's has to pay its help $10/hr. The price of my dinner goes from about $7 to about $10-11. I can't afford to eat at MaDonald's as often as I used to, so I eat at home more. McDonald's loses business because eveyone is eating at home more, so they lay off some workers because they don't need 10 people during the dinner rush anymore. The people that are left end up making more money, but the overall wages paid out by McDonald's has in fact gone down, due to the fewer number of employees they now have. The laid off people create a drain on the unemployment system (assuming they qualify in the first place), and the state raises McDonald's Unemployment Tax Rate to offset this drain, further increasing MickeyD's costs, which are in turn passed on to the consumer.

Now multiply this effect on the entire economy, as well as the effect of companies relocating to other countries where labor is cheaper, and you see why the Liberal notion that higher wages solves everything is a farce.

Answer 2

Um... no... Minimum wage means no one can be paid below that. They'll be raised along with everyone else.

And if you mean those who are earning just above what minimum wage will be, there's no unfairness involved, because it's not as if you suddenly will be poor and can't afford what you used to. The goal of the raise is to make sure people won't go broke simply trying to eat and survive because their wage is so low.

Answer 3

Even if they raise minimum wage, it still won't be enough to really live on. I agree it isn't fair how little some people make, when they work just as hard. Unfortunately thats the way it is though.
If you want to make a living you have to have a plan. Do you need an education? what kind of entry-level experience will help you?

Answer 4

This will never happen simply because of the "minimum" part. When they raise the minimum wage, YOU HAVE TO MAKE AT LEAST THAT, that is why it is called MINIMUM. So everyone who makes less then what they raise it to, has to be bumped up to minimum wage.

Answer 5

I think that by raising minimum wage, we will have more business owners looking to save money by hiring illegal aliens to work for cash. Because when you raise the wage, you also raise the tax liability for the employer.

Answer 6

It is about time, but still not a living wage!

Answer 7

Yes, that's true, however, do you think its fair for people to have to struggle just to live, because of unscrupulous, greedy bosses.