Should the Federal Minimum Wage be raised to $8.50/hr?

Question

What would be the effects of raising our federal minimum wage? Can we expect all our grocieries and gas prices to double up? What will happen with inflation? What about social sercurity and disability?

Answer 1

The effects?

1) Prices for some goods would increase... particularly in industries like fast food. They would not double though.

2) Payrolls are going to remain relatively the same, so increasing the minimum wage means less minimum wage jobs. If McDonalds employees 20 people, they may decide to only employ 15 (and make them work even harder.)

The result is some poor people end up losing their jobs, and to make things worse, the price of goods increases for them. Rich people aren't affected because their job is secure, and they don't see price increases because they don't rely on low wage workers to produce cheap products and services. Raising the minimum wage doesn't take money out of the hands of rich people and put it into the hands of poor people. It takes it out of the hands of poor people, and puts it into the hands of other poor people.

Answer 2

No.
A raise in minimum wage results in a decrease of entry level jobs. If someone has 10 employees at minimum wage, after an increase he will simply employ 9. This way he holds his expenses down.
The people who receive the raise will not have extra purchasing power because prices will increase.

Answer 3

Statsitically, all that has been empirically proven is that unemployment increases among teenagers and young adults. It is likely that, at least in the short-term, prices will go up, although if enough lead time is given, you'll experience higher prices in the form of poorer service (since there aren't as many employees, or at least as many employee hours) at minimum-wage-paying locations.

No impact will be seen where wages are above the minimum to begin with.

Social security and disability benefits will be unaffected, or if affected, the effect will be negligible.

Answer 4

I think the affect on prices would be minimal.

Some people would get more $$ a very good thing but a few would lose their jobs & a lot of young people would not get – or get much later -- their first job. Also, the number for jobs would be smaller as higher costs would make it more cost effective to use machines & technology than low wage people. Remember when we stores had baggers & we never rang up our own purchases.

Answer 5

Good question -- I say yes raise the minimum wage. The cost of living is high already and $8.50 is still not enough to live on but it may help.

Answer 6

Why raise the minimum wage?

There are consequences for actions, and it helps if we know the results of those actions.

Simply raising the minimum wage, by itself doesn't develop any long range solutions for those who have minimum wage jobs.

Answer 7

What has happened historically is that it raises teenage unemployment.

MOST adults do not work for minimum wage anyway, however, most teenagers do.

The latter tend to suffer job cuts when the minimum wage is raised.

Answer 8

It's not just about money, or shouldn't be. Say you had a job you hated and you wages were $15.00 per hr. Then you were offered another job that you know you would love, for $10.00 per hr. Would you stay with the present job or take the other job? Food for thought.

Answer 9

No Way, the cost of living rises with the minimum so it really doesnt benefit anyone.

Answer 10

hourly wages should be proportioned to CEO's total income

when people have more money to spend, all lives improve

social security and disability payments should be quadrupled (at least)

there is plenty for everyone