In re another question of mine: My thoughts on minimum wage vs. living wage?

Question

http://answers.yahoo.com/question/index;_ylt=AsP.h_UUhGlCoYv2DU26Dtjsy6IX?qid=20060906115435AAHuGeN

A lot of people answered this question, about a maximum wage, saying that raising the minimum wage destroys business growth. Well, if people aren't being paid a living wage, our economic system doesn't work, and that's why we need to require a living wage. As for the person who gave a long explanation on how businesses will go under and people won't invest in new businesses if the minimum wage is raised, I have to say I could agree with the basic concept that a raised minimum wage could do harm to small businesses... but not a requirement to pay a living wage.

The entire structure of the economy would modify itself to accomodate the change, after a short turbulant time, it would correct itself and be better for it... people would have more spending power, etc.

As for creating new businesses, NOTHING will stop Americans from creating new businesses. If they have to pay a higher

percentage of profits to their employees, they will invest in more businesses in order to maximize their profits... it would actually mean more jobs, in my opinion, not fewer, especially provided that you require corporations wishing to sell to the U.S. to pay a comparative living wage to every aspect of production or services, even in foreign countries.


OK, now tell me why I'm wrong and a communist.

Answer 1

Actually had a similar discussion with someone recently, with Wal-Mart as a jumping-off point. If the "Walton World" succeeds in pushing costs to rock-bottom levels by paying low wages, giving no benefits (thereby raising the personal expenses of its ever-growing herd of employees), and forcing suppliers to move manufacturing jobs overseas to cut production costs (thereby lowering the number of decent-paying jobs for working-class folk) don't they run the risk of destroying the purchasing power of their own customer base?
Henry Ford recognized this nearly a century ago. Part of his strategy was to pay his workers enough that they could afford to buy cars. Ford cars. Recycling his own profits in this way actually contributed to the growth of Ford Motor Co. (His innovations in mass production were useless without a mass market.)
It often appears that the modern business community has forgotten this lesson:

You can't make a profit where no one can afford to spend.

Answer 2

that is the philosophy behind the leaders in Mexico. As they became super rich. The poor are so poor they beg in the streets.
Their children are forced to prostitute themselves to get enough food. No welfare, no social security. The Republicans would love that Old people sell gum and candy on the beach to survive.
There only hope is to come to America and work for min. wage.
That is not a living wage. We are rapidly becoming that here.
We will be trying to get into Mexico pretty soon.
We cannot afford to rent the cheapest house or apartment in town with the minimum wage. If you work a 60 hour week.
Why do the super rich get consistent raises. If it hurts the economy? They have good excuses for their huge wages.
So did the super rich in Mexico. We are rapidly becoming our worst fear. The rich buy the poor children already.

Answer 3

Sorry to say but this whole plan promotes corporate and pushes mom and pop stores under. Mom and Pops have enough to worry about because of big box retailers, and corporate junkies. We pay our employees a fair and decent wage, more than $1.00 over California min wage.

Answer 4

I agree with you. A living wage is crucial to eliminating poverty within the country, assuming the increase in a living wage does not have the latent effect of increasing the cost of living due to changes within the economy. Control over the rate of inflation, especially in certain parts of the country is also crucial to controlling poverty.

Answer 5

OK, you're a communist.