What would happen to America if the minimum wage was raised to $10.25 an hour like it is in New Zealand?

Question

and dont say the economy would collapse, because its $10.25 in New Zealand and they're doing fine, in British Columbia its like $8 an hour, in Australia its aroundthe $12 mark...would it be so hard to raise the minimum wage in the US to $10.25?

Answer 1

Some people are not capable of producing at that level, so businesses would be hurt by higher expenses without a corresponding rise in productivity.

Also, the higher the wage the more worthwhile it is to automate things (like an ATM). Imagine going to a fast food place run by robots; they might get your order right and say hello, but they wouldn't pay any taxes or stimulate the economy at all.
People should not work a minimum wage for long; they should always develop new skills and get higher paying jobs as they produce more.

As far as saying that New Zealand's economy is fine, well I don't know about that; that's a pretty broad statement and I haven't got a clue. What is the unemployment rate? What troubles do they have with imports and illegal aliens? It's hard to compare.

I think if people want to earn more they should seek and prepare for better paying work. Leave the minimum wage jobs behind.

Answer 2

We can raise the minimum to $10.25 and as long as we keep the same limits for small business, it will affect Wal Mart the most and causing them to go under hopefully. What you are forgetting that Wal Mart started the lower price for goods at all cost. If we raise the minimum wage than the cost of goods will increase since it will cost more to produce them. We will also see more of the lower paying manufacturing jobs going overseas which will hurt the uneducated. Remember that only 3% of all workers in the United States makes the minimum wage with most being part time workers such has high school and college students. Most people once they start working slowly work their way out of the low income levels if they have skills that allow them to.

Answer 3

As Ross Perot so accurately predicted,
a Big Sucking Sound as more jobs leave the US.

Bear in mind those already making 10.25 would want a raise, and so on and so on and so on.

Answer 4

there wouldn't be a big change but,

some people would lose their jobs because the business would not be profitable with that kind of wage level

it would be very hard for teenagers to get any jobs

fast food would instantly get more expensive

lots of other things would get a little bit more expensive

there would be lots of other minor effects, most of them bad, on the overall economy

but, low-end workers who didn't lose their jobs would make a lot more money

Answer 5

If minimum wage went up so would everything else so the only people it would help is the people who work at the mints making that overtime to make all that money you talking about.

Answer 6

Dude, this is a good but very complicated question! It would take someone forever to explain it! Short, NOT POSSIBLE! Because other countries and their economies have different wants and needs than the Ameriv´can economy! You can't compaare apples and oranges!

Answer 7

Right now I can afford to pay 3 employees 7.00/hr each. If minimum wage went to 10 somebodies getting fired.

Answer 8

The cost of everything American-made would rise, so more domestic companies would resort to cheap foreign labor, laying off more Americans. Services would all increase in price, so the benefit of the increase in salary would be negated by inflation.

Answer 9

Democrats would raise the taxes

Answer 10

Our economy couldn't handle that.
It would surely cause a depression.