Why do so many think raising minimum wage is such a good thing?

Question

Sure it seems ok at first glance, but after actually thinking about it it doesn't really help anyone. Cause and effect: You raise your employees pay rate, you have to raise your product prices to compensate. So as they raise the minimum wage to match the cost of living, the cost of living increases making it all pointless. Right?

Also, for those of us who make above minimum wage, there is no plus side. Cost of living goes up, and we get no wage increase to balance things out. So while those making minimum wage continue to have to scrape by, those who were making more before take a hit to the wallet as the prices go up.

Am I missing something important here? I see so many political commercials about one person being praised for supporting the minimum wage increase, and those who don't are being shown in a negative manner. Opinions?

"you are wrong in stating that if minimum wages are raised, the prices of products are to be raised. read the fundamental principles of economics. labour is one of the means of production. by not raising the prices, the corporates can cut their unnecessary expenditure they spend on advertisement and by adopting aggressive, scientific marketing strategies, they can enhance the share of their product in the market and make more money."

So what you're saying is: by NOT raising prices the companies can use the money they would've spent on advertising and find other ways of... advertising? I halfway follow but the other half is just thinking "...what did she say?"

Answer 1

Think of it this way: Given no external control, employers working with low
end jobs are ALWAYS in a "seller's" market - that is, their potential employees
cannot simply up and get work elsewhere.

Indeed, given even illegal opportunities, companies will pay less than
minimum wage to people who can't complain (e.g. illegals).

It is one of the very few protections our government offers to people who
are in the worst possible position to fight back.

Think of it another way: By your logic, there should be NO minimum wage.
Since starvation is pretty much an absolute, there will always be a market
for jobs that would pay a penny an hour.

Sure, we are all ultimately paying for the fact that a certain group of people
won't starve, but I think its worth it.

Pure capitalism is entirely consistant, very workable and incredibly
inhuman. Would you really rather assume that people who don't have
the economic where-with-all to force their prospective employers to
pay them a living wage should depend on charity?

Answer 2

Your argument is based on a fundamental misunderstanding of what the minimum wage is for and what it does. The minimum wage is raised to reflect inflation--it doesn't precede it. Again, that's been the case for over 70 years. Minimum wage standards actually affect few workers and have virtually no impact on the payrolls of legitimate businesses. That's because repugable businesses are already paying nearly all of their workers at or above the new minimum. Go back and look at the economic history and you'll see I'm correct. The minimum wage is directed at businesses that are unethical. These are businesses that--if they are allowed to get away with it--wil exploit vulnerable workers by paying them wages that are well below the going market rates. Again, take a look at the people who are whining about increases in the minimum wage. You'll find they either don't know what the minimum wage is and what it does--or they are dishonest businesspersons or so incompetent they can't pay fair wages and still make a profit.

Answer 3

No! No! you raise the minimum wage 7% and out stuff only inflates 2%. The gap between the rich and poor is the real problem when you compare from the 60`s and 70s you will se a big difference. You know who should take the hit when the min. wage rises the c.e.o.s It is time to turn these billionaires into millionaires again and show some real trickle down.

Answer 4

I believe that the theory behind minimum wage is to guarantee a minimum standard of living for those in the United States who must hold an entry level, no skill job. Hopefully, that would encourage people to work instead of depending on social services.

The current minimum wage as it is now has no meaning in most of the country. Very few people actually work for $5.15 because the demand for labor is too high. Even WalMart and McDonald's offers $6-$7 as a starting wage. So, the minimum wage either needs to be raised or abolished. It is obsolete as it stands now.

Answer 5

you've pretty much got it right. minimum wage is a 'feelgood' thing, like all the talk about 'a living wage'. forcing employers to pay a specific amount - no matter how trivial the work - does not help anybody. if there were no minimum wage laws, employers would still have to pay a decent enough wage. there's the law of diminishing returns, even for the laborer. if the employer won't pay enough, he won't find anyone to do the work. if the work doesn't pay enough, the worker will find someone else who will pay a reasonable amount. it's not hard to understand. people have this crazy notion that without minimum wage, people will be forced to work for too little money. but the reality is, most people who earn minimum wage are *teenagers*, who are still living at home, and not trying to support themselves.

Answer 6

you are wrong in stating that if minimum wages are raised, the prices of products are to be raised. read the fundamental principles of economics. labour is one of the means of production. by not raising the prices, the corporates can cut their unnecessary expenditure they spend on advertisement and by adopting aggressive, scientific marketing strategies, they can enhance the share of their product in the market and make more money. that is the secret behind the success of big business houses.there is no scientific data to substantiate your claim that cost of living will go up by raising the wages. YOU HAVE FORGOTTEN THAT WAGES ARE RAISED BECAUSE OF HIGH COST OF LIVING ONLY.my sincere advice to you is to make a cursory look of the fundamental principles of economics and study the profit and loss account and balance sheets of big business companies.

Answer 7

I know people who are working 2 jobs & their bills are still
exceeding their income.
Prices have already gone thru the roof, while salaries have
remained the same.
Except for the politicans who vote themselves a raise every
4 - 6 months. If they feel like they need more money, imagine
how the minimum wage earner feels.

Answer 8

The people making minimum wage haven't had increases in years and their earning power is less now than it was in 89, if you factor in inflationary costs over the last 17 years as well as what exchange rates have done around the world.

People on minimum wage or who haven't had even COLAs in decades are falling further and further into poverty. And you want to deny them the chance to live on or a little above the poverty line. Geez, I'll pray for you and them.

Answer 9

i watched a movie in contemporary society class..a woman was excited over the increase in Min Wage..turns out the increase in wages made her landlord increase rent..she now didn't qualify for government compensation..she was much worse off after the increase...the only people min wage increases really help are high school kids working in the burger joints..they don't care if cost of living is going up if those certain things don't apply to them..and for the rest of the adults that have such jobs..it doesn't do nearly enough to stabilize their life...if they really want to do something..they should bring in more high paying jobs rather than shipping them overseas so other workers can do it for less..

Answer 10

The problem is that the wages and profits of the corporate giants have gone up immensely yet the minimum wage has not. That is the tyranny of capitalism.