Do the people that want an increased minimum wage know anything about economics?

Question

Wage increases cause increased inflation and rising unemployment. This negates the effects of the wage increase, as goods become more expensive and fewer people have jobs.

I'd hate to see the lending rates caused by the rising inflation that would result from an increase in inflation. People and businesses wouldn't be able to borrow money unless it was at exorbitant rates. This would slow down the economy.

I'd hate to see the growth in unemployment caused by firms' inability to hire workers.

Do these people know anything about economics?

Answer 1

No

The point your trying to make is that a price floor actually creates a shortage. That is classic economic principles at work. Lets let go of the emotion and think. For all of those who think that those earning minimum wage would be better off if we raised minimum wage, consider this:

What if, due to the higher cost of labor, businesses hired less people and those people who had the jobs get fired in an attempt by the business to cut costs. Then their lives would get a lot harder. Other companies would be doing the same thing. They may not be able to get any job. What then? How are they going to feed their families.

Its a hard decision to make. but it is a fact. Price floors create shortages. To help the unfortunate... what do you do.

The deeper concepts are that the market sets the price that labor is worth. If a business cant find any people to do the job that it needs done they raise wages. The law of supply and demand. Lots of fast food places don't even pay min wage. The harsh truth is that if the job that these people were doing was worth more to the business they would be paid more. When you force a business to pay someone more than they are worth (whether that arbitrary price keeps up with inflation or not) they will take certain steps to require less help from labor. Mechanize or whatever they need to do. Jobs will decrease.

Anyone who is in desperate need of higher min wage should think about moving to New Mexico. Their min wage is like 9 bucks an hour. Why are people not stumbling over themselves to go there? Because there aren't enough jobs to go around. The price floor of wages has created a shortage and has slowed economic growth. This is a real life example.

Answer 2

No kidding - but thanks to all the bleeding hearts, Pennsylvania has increased its minimum wage . And it will take effect as of 2007.
Our democratic Governor loved the idea and pushed it down everyone throat - when anyone in the House or Senate said about inflation or businesses leaving the state - our Governor screamed the "hated the poor". Now our property tax reduction he promised 4 years ago was sidelined until after the November election. But at least he has his priorities straight.


Everything will be going up as to match this "living wage" for the poor. The minimum wage battle is a joke- no one stays at a job at minimum wage for very long. Most companies will start an employee out at minimum wage for 30-90 days until they see how your job performance is. Lets be honest - why pay some yoyo full salary if they can't last the week.

The only one to benefit from the minimum wage increase is the high school kid starting out or the unions which will now have to get a raise to keep above the rate of inflation.

Answer 3

Yes they know a lot about economics. If we have a big jump in inflation it is going to be caused by the Chinese government refusing to support Bush's deficit spending. Bush has sold this country lock stock and barrel to China and you're worried about the people on the lowest economic rung getting a break. People complaining about raising the minimum wage are the same ones that would like us to open our borders to illegal immigrant labor to increase their bottom line no matter what the cost to anybody else. I bet you just love it when there is a labor shortage and low wage workers should be able to charge more for their labor but the Fed steps in to increase interest rates with the aim of increasing unemployment . You don't mind if their wages are artificially kept down so shut the F*** up when they get it raised once in a while

Answer 4

Are you suggesting that increasing wages for the undesirable classification will fail the comparable way trickle down has failed? That being especially, no longer spending the funds or making an investment it in substantial highway? silly! they'll spend it and the middle and the top classification will benefit. there replaced right into a reason value of residing salary will advance helped our united states. We did away with that and different de-regulations enabled the hording of income.

Answer 5

Minimum wage doesn't even keep up with inflation.

One major problem in our economy is that the rich are getting richer and the poor are getting poorer. History teaches us multiple lessons about what happens when this gets out of hand.

"It is quite certain that in seeing the people who treat us so well despite their own misfortune, we are more obliged than ever to work hard for their happiness. The king seems to understand this truth; as for myself, I know that in my whole life (even if I live for a hundred years) I shall never forget the day of the coronation." - Marie Antoinette (Apparently she never said, "Let them eat cake.")

If she had acted earlier, she might not have lost her head. Today we have the equivalent of a bread shortage. People cannot live on minimum wage, it simply is not enough to pay the bills.

Answer 6

Oh come on! I mean get a grip who works for minimum wage and if they do you can't possibly believe that allowing then an
increase will cause any inflation in anything beyond their ability
to afford their family a decent meal.

(I had to come back and vent) Where's your Humanity? Is our
precious economy more important than allowing our less fortunate a decent life chance.

Answer 7

The answer is simple... NO they don't. If they are concerned with minumun wage then they are probably collecting minmum wage therefore they most likely have never taken economics, and possibly not even algebra!

Answer 8

No they probably don't know because they are too busy trying to survive on the meager wage they get now. There are many, many people that haven't had the luxury of getting a good education, they have had to work to try and get by and support their families.

Answer 9

No, they only understand or appreciate that which serves the immediate good for themselves. If people end up unemployeed it is the task of government to dig them out of this with extensive and costly public services and programs.