How does raising the minimum wage help the middle class?

Question

Shouldn't we be testing democrates for crack?

Answer 1

Only about 3% of the U.S. workforce is paid the minimum wage. In other words, 97% already earn more. This 3% is not in the middle class so no, there is no direct benefit to the middle class.

The reason this always comes up at election time is twofold: First it SOUNDS good even to many who won't benefit directly, and they vote for the people who are supporting it out of misplaced compassion for "the underprivileged." Second, it's a payoff for the Union vote. Most non-union people don't realize it, but many union contracts are tied to the minimum wage, so that the union workers are guaranteed they will always stay X dollars over the minimum wage. It doesn't matter if they're making $30/hour, if minimum wage goes up a buck, so does their pay.

It's still bad for the economy though. Prices have to go up to compensate, people spend the same but buy less, and some of those over paid workers lose their jobs.

Answer 2

Wages, like other prices in a market economy, are based mostly on offer and demand. The minimum wage is one example of government interference in the market. (The government actually interferes with most prices, one way or another).
When you raise the minimum wage, you tend to raise all wages. The reason is minimum-wage employees are generally the unskilled and unionized. Union workers will start demanding raises to reflect the change in the minimum wage. If a skilled worker could make $2 more an hour than the minimum wage before it was raised, their salary will tend to go up too as the labour market adjusts. Why would a skilled worker work for pennies more than the minimum wage when they can get a higher-paying union job?
So generally speaking, everyone's salary tends to go up, at least for a while, because this creates inflation, of course. So it's hard to say, in the long run, if everybody is actually better off. It does tend to narrow the gap between minimum wage workers and other workers.

Answer 3

The problem with raising the minimum wage every 5-7 years or so is that it will raise the price of services and retail items. The employer has to make the money up someplace that he is paying out in wages so he raises all his prices.
So next time you go to get a Sub Sandwich and it is now $6.50 or the next time you clean your carpets and it cost $200 you will see what is wrong with it.
Every employer will have to raise the rates and prices to off-set the extra money going out to employees and taxes.
Is anyone ever for the small business owner. Many are barely making ends meet. And keep in mind if you start losing the small businesses then there will be less competition and of course that means we pay higher once again

Answer 4

Raising the minimum wage increases the amount of money being pumped into the economy, which raises demand and produces more jobs to increase the needed supply. These additional jobs creates more tax payers, which brings in more tax revenue. This can lead to tax cuts for everyone. In addition, an increased minimum wage would reduce the poverty levels, which will reduce the crime levels (as many crimes are actually crimes of desperation).

So, you see, increasing the minimum wage make sense for everyone.

Hopes that help.

Answer 5

Raising the minimum wage means more money in the pockets of Americans which in turn translates into more goods will be bought in stores, especially those owned by middle class Americans.

Answer 6

it is a mixed bag. If minimum wages are higher, all wage scales should end up higher. But if wages go up, the cost of goods will go up, because it costs more to make/sell them. Ultimately, this would cause inflation, which helps no one. But, relative to the costs of goods sold, the current minimum wage is unconscionable. It just isn't enough.

Not fair to blame democrats, though.

Answer 7

Yeah, that makes no sense. they should just leave that alone, once the stupid liberals get an idea they run with it, and dont even think about the effects it makes on the country until its too late. the only thing that will help if the raise the minimum wage is drive prices up.... for EVERYTHING!!! (sorry if you make minimum wage, because then you would obviously dis-agree with me!)

Answer 8

Raising minimum wage eventually just makes everything cost more, which increases standard of living costs, which means WE ALL LOSE BUYING POWER. This is well known in economic circles and the only folks who don't understand this are working for minimum wage for a reason.

Answer 9

Doesn't giving you more money help you out???

Are you really this dense?

If you want to test democrates for crack it will have to be a federal comission which will cost money, and then the pharmacy companies will want their share, and all this money will come from somewhere. I guess you'll have to raise taxes to achieve this. Hahahaha your a tool.

Answer 10

Ummm, their teens earn more at McDs? Really, I think it's supposed to be sort of a trickle up theory. Low end earners have a little bit of discretionary income and they spend it on stuff that is produced/distruted/retailed primarily by middle class workers. I don't agree with this reasoning but that's how I understand it's supposed to work.