Living wage and minimum wage. What's the answer? To live in anything more than a one bedroom apartment in my experience you'd need three minimum wage jobs.
Why is minimum wage so low and what would happen if it was raised?
2006-08-24 15:20:17 · 11 answers · asked by thudder77 2 in Politics & Government ➔ Other - Politics & Government
I thought you were going to say those in congress should get minimum wage. Now that would be an answer!
2006-08-24 15:26:02 · answer #1 · answered by ii337 3 · 0⤊ 0⤋
If you raised the minimum wage unless you conducted some tax tort and regulatory reforms that would lower the other cost of business
all you would see is hire prices.
However if you did those reform and left the minimum wage alone
purchasing power would increase.
Just something to think about the minimum wage in 1986 was $3.35
if you adjusted that for inflation it would be $7.20 ( a little less than our current one) the price of a big mac in 1986 was $1.6 if you adjusted that for inflation it would be $3.45.
The cost of a big mac is $4.64
Either 5 cents results in a big price increase- or something else has resulted in the big mac costing more.
I think it is the second which is why I say look tat tax, tort regulatory and monetary reforms.
It would be far better to do an action which could cause the big mac to drop almost $2 than to raise the minimum wage.
2014-05-14 04:27:07 · answer #2 · answered by ☦ICXCNIKA ☦ 7 · 0⤊ 0⤋
Minimum wage is the lowest amount a worker will labor for. This wage is essentially set by supply/demand forces in a market economy. For example, in my state minimum wage is set by the law at $5.15, but very few jobs start at less than $7 an hour, because the competition of the market causes the wage to increase. In a perfect market economy, a worker will go to the place where he can be paid top dollar for whatever work he/she performs, so companies are constantly adjusting to what other companies are paying. Since the American system is based on free market competition, Congress should really not adjust minimum wage because it's not necessary. To intervene tends to be detrimental -- if a company refuses to pay you $7 an hour based on need for your labor, it's unlikely that they will pay $7 because the government says they have to. More than likely, they will eliminate the job and shift the responsibilities to current employees -- it sounds counter-effective, but companies do it all the time.
Raising minimum wage is complicated, especially when you factor in employees who aren't paid the minimum wage because they are tipped. It's really better for the government to stay out of the market.
2006-08-24 22:31:21 · answer #3 · answered by Prisoner081406 2 · 0⤊ 0⤋
Raising the minimum wage does nothing more than cause companies to raise their prices for their products and/or services. That makes your new paycheck worth a lot less and also impacts those who are salaried or receive government assistance...they're checks don't go up just because the minimum wage went up.
2006-08-24 22:26:38 · answer #4 · answered by WhyAskWhy 5 · 0⤊ 0⤋
i would like to see this happen. how would these govt people like to live making say $6 an hour. i would like them to see how to make ends meet-- paying taxes- car payments- insurance- elect bills- telephone- medical insurance and other household bills on $15,000 a year. i would assume these people would starve to death on what the low income families make.i would like to see them walk in my shoes just for 1 year on what i make. oops-- there goes the mercedes- the 10,000 square foot home-- the scarab kv38 at the dock. the poor are suffering and will continue to do so. if minimum wage is raised-- then what you buy will increase. look at the price of diesel? the truckers cant make no money when they contract out for so much a mile and diesel goes thru the roof-- they have to honor their contract for $1.50 or $2.50 a mile or whatever the contract is for.any increase in min wage will get ate up with product price increases
2006-08-24 23:50:25 · answer #5 · answered by james_a_willis 3 · 0⤊ 0⤋
Yes this bugs me too. They keep helping the rich get richer and poor get poorer. Not everything would be solved by raising wages but it would be a step in the right direction. Did you know that Congress got their salary raised 3 times in the last 5 years...talk about ironic
2006-08-24 22:28:31 · answer #6 · answered by Anonymous · 1⤊ 0⤋
see if you can get the congress to vote for them a minimum wage.
2006-08-24 22:26:20 · answer #7 · answered by robert p 7 · 0⤊ 0⤋
Cut congressmens wages..
Absolutely yes...
2006-08-24 22:25:29 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Usually when income goes up so do the price of goods.
2006-08-24 22:27:05 · answer #9 · answered by scarlettt_ohara 6 · 0⤊ 0⤋
If it was raised, you'd be fired. Think about it.
2006-08-24 22:22:48 · answer #10 · answered by Pancakes 7 · 0⤊ 0⤋