Do you think raisng the minimum wage will actually help, or do you think that wholesalers and stock market speculators will just see it as another source of profit by pushing wholesale prices even higher? Example: Over 20% of the cost of fuel comes from stock market speculators buying oil futures, holding them back until the price goes up, than selling. This is done with food and all the necessities important to minimum wage earners.
2006-07-29 11:54:52 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Few people realize how much raising the minimum wage will cause prices to rise and people to lose their jobs. Raising the minimum wage is a cause of inflation, not a cure for it. I do not think there will be much profit to be gained for businesses either, because they will be the ones paying the wages. They will raise their prices, but they will do it to cover their costs. So, this wage increase will only result in bigger dollar amounts all over the economy which really do not reflect any change in value. The minimum wage has long been a pet issue for politicians, for what greater motivator can you think of besides "If you vote for me, I'll make sure you get paid more." Surely they are aware of what the wages can do to the economy. I think the minimum wage should be controlled by the Federal Reserve, because they alone are independent from the whims of politicians. The Reserve is run by experts in economics who are appointed to be impartial and prudent in managing the money supply. They do everything possible to stop inflation by controlling interest rates, so it stands to reason that they are the best organization to manage the minimum wage. Just a thought. Have a good night!
2006-07-30 18:01:13 · answer #1 · answered by anonymous 7 · 0⤊ 0⤋
I would like to think not as much percentage wise as the minimum wage is going up . The minimum wage is gonna increase approximately 38% over the next 2 years if the law is passed . Inflation and prices are not going to be raised anywhere near that . The people receiving the new wages should shop around for food bargains , clothes , and gas and they may be better off . We are financially set yet we clip coupons , shop for gas , and load up on specials where supermarkets are selling loss leaders . These people need money management course maybe too . It would not hurt for sure . Basic answer is no the cost of goods will not grow up greatly as there is not that many minimum wage earners to begin with and competition will keep prices stable for the time being - I hope !!!!!!
2006-07-30 15:49:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes, toothpicks and locomotives will go up in price. The stock speculators/investors will benefit financially. Remember Argentina.
2006-07-30 02:09:41 · answer #3 · answered by milan 1 · 0⤊ 0⤋
I wish it would go up, but Yeah I am afraid with a raise in pay that everything else would have a excuse to go up too. You will never get ahead in this life time.
2006-07-29 19:02:24 · answer #4 · answered by c g 3 · 0⤊ 0⤋
When one goes up, the laws of economics have proven that all else will rise as well, leaving all in the same financial situation.
2006-07-29 18:58:33 · answer #5 · answered by Serendipity 1 · 0⤊ 0⤋
i think that raising minimum wage have proven many times that everything else also raises. is not that people dont earn enough. is that people today want to live more than they really have.
2006-07-29 19:48:27 · answer #6 · answered by overstockto 2 · 0⤊ 0⤋