will the 12 state raise in Minimum wage cause more harm than good?

Question

will this lead to a tax hike and more unemployment, common sense as well as a little experience with Economics tells me yes.

Answer 1

It couldn't hurt an economy as much as rising fuel expenses could. They both cause inflation, but the rate of fuel expenses is way out of proportion. The rate of minimum wage is a reaction of growing demand, by raising the price of available supplies.

The difference is fuel expenses are an increase to the cost of living. The higher the cost of living, the less money we can spend on commodities and other consumer goods that fuel an economy. Fuel profits just sit in Swiss bank accounts. Not too mention, they also increase other living expenses as a result in their cause of increasing the cost of operations.

Raising minmum wage is a step taken to help people cope with inflation. It helps people take care of the cost of living with less stress, but also leaves them with more spending money to be recycled through the economy. It may hurt industries at first with the cost of wages, but in return, industries benefit off of a universal increase of sales and/or profits, due to consumers having more money.

Tax hikes on a state level will most likeley effect those with wages much higher than minimum wage. It's more of another thing for people with salaries to grumble about in April. It does effect the less paid 50%, but that money is often refunded, due to either low income, too many child expenses, or paying for college. Most people fail to realize that taxes are supposed to be returned to payers not in the form of money, but rather in services that will in turn help you to either save or make more money, or at least your children. The problem is politicians generally don't know what to do with the money, as if they skipped class during that lesson on fiscal policy.

As for unemployment, well that figure is not always viewed correctly. People laid off of jobs are considered unemployed because they receive a check from the unemployment office. They usually get paid more than minimum wage, and I am currently enjoying being layed off. I'm getting paid to sit around, do nothing, and still get he bills paid and have left over money. And I'm a college student getting only 8.50 an hour in a body shop.

Raising minimum wage hurts at first but in a long term prespective, the consumer economy would benefit from it.

Answer 2

The way the US is set up, I think it will lead to higher cost in everything from groceries to housing as well as travel. They think that by increasing the minimum wage they will enforce a higher standard of living among those who are lower class now, but in reality things will stay the same for them, just that everything around them will start to cost more. Also, this will be detrimental to small businesses that can't afford to hire people are higher wages, thus enabling corporate evils such as Wal-Mart and Target to take over the US.
Good jobs idiots in Government. I never want to go back to the US again, they keep screwing everything up and making it a horrible place to grow up in and live out your old age.

Answer 3

YES!!!! it may seem good for people who make the minimum wage right now but if this happens taxes will bump up business will fall causing unemployment i don't think it is a good idea business will run out of money and lay people off

Answer 4

This week San Francisco proposed lowering the minimum wage for tipped employees from state minimum wage of $8.82 plus tips to $2.13 an hour plus tips.

Answer 5

Why would it create a tax hike?There are arguments on both sides.The current bill would actually decrease wages in some state while giving yet more tax breaks to the rich.Further more why would you answer your own question?Are you mentally unstable?

Answer 6

Yes

Answer 7

Good in the 12 states?

Bad in the other 38.

Answer 8

it may help the ones that already work but not getting the regular minimum wage now.
i guess we will all have to wait and see

Answer 9

Look the millions of people who would have more to eat in the eye and tell them it's going to cause too much trouble.

Answer 10

it will help because there are to many americans living under the poverty line . the raise in the min wage will bring them close to that line .