Why not raise it to 10 dollars an hour?
$15 an hour. Who cares?
The bottom wage earners will still be the bottom wage earners right?
People at the top of the pay scale will make more money to adjust with inflation.
Prices will rise and inflation will increase.
The demand for illegal laborers will increase.
People will still buy a new car and a new TV before they buy health insurance.
It seems that Democrats think a minimum wage increase will take money from the rich and give it to the poor. Like a Robin Hood effect.
Is this really true?
2006-11-07 15:33:42 · 8 answers · asked by shawn1980 3 in Social Science ➔ Economics
Actually if you raise the minimum wage it will cause a loss of jobs because employers won't be willing to hire as many workers at the new wage rate. Whether or not the price level will rise depends on if the effect of the smaller output by firms on supply outweighs the effect that lower demand (due to people losing thier jobs) has on demand (but then there are also things like unemployment benefits and the number of people on welfare to consider). It might even fall if the effect is small enough.
The higher wage here may also cause jobs to be shipped overseas where production is still cheaper, which would soften the blow to production, but wouldn't really help with the problem of lowered demand.
For wages to actually increase here we'd need a rise in productivity, not in the nominal wage rate. This could be accomplished by a better education system, technology innovation, etc. I could go on and on, but this is getting long.
I'm a Democrat and I don't think raising minimum wage would do any good. So please don't make blanket statements like that. Do all Republicans agree on 100% of the issues?
2006-11-07 17:49:03 · answer #1 · answered by Becca 2 · 0⤊ 0⤋
The only thing that is accomplished when the minimum wage is increased is that the employer will offset the cost of the increase. Raising the cost of production will increase the price of the product. If liberals had an understanding of basic economics they would see how much common sense they lacked on the issue. They are so hell-bent on government involvement that they allow common sense and logic to get in the way of their objective.
2014-02-08 23:15:22 · answer #2 · answered by craig.winter41 6 · 0⤊ 0⤋
Prices will rise and inflation will increase, but this happens over a long period of time until it is time again to raise the bar. I would say mostly poor people benefit from raising the minimum wage and the benefits tend to fade as you move up to the middle class then top earners. Illegal laborers and health insurance are irrelevant issues.
2006-11-07 23:53:56 · answer #3 · answered by chaibi 1 · 0⤊ 1⤋
It makes politicians think they have done something- while they in reality hurt people. If really cared about ways to help the poor they would look at ending ag price supports and conducting some tax, tort and regulatory reform with the aim of decreassing the cost of doing business in the US and increasing employment and real wages.
2014-07-12 12:45:27 · answer #4 · answered by ☦ICXCNIKA ☦ 7 · 0⤊ 0⤋
Dems plan to:
Raise the minimum wage. Some ask what difference this will make. For starters, an employer will not be so free to hire an undocumented worker and pay them less.
Who cares??? Really, you wan't to go there? Can you count? Did you vote?
Second; it will give our young adults a chance to enter the fray with more than the clothes on their backs and their parents checking account balance.
It will lift many out of poverty.
Third; Dems want to negotiate prices on prescription drugs. This is a GOOD thing.
Fourth Dems know Stem Cell is not a bit about Cloning, never was, likely never will be. Cloning was flashy and it got the attention of researchers.
All of them saw the dark potential and none are going seriously down that road, but the potential of stem cell to cure multiple killing diseases is untapped and unimagined, except by a few hard working and committed scientists. The Dem's plan to fund them.
My kid is a type 1 Diabetic. I will be there to support stem cell. It might even have saved my Dad who died of Cardio/Pulminary Disease. ( Dad got Lucky Strikes in his K rations).
And to whom has the shrub awarded all the spoils???????? The rich just got richer.
Oh, Bla Di, Oh bla da, Life goes on, lalalalalala, life goes on.
2006-11-08 01:46:54 · answer #5 · answered by Norton N 5 · 0⤊ 1⤋
that couldn't be further from the truth. I'll give you a point of reference and you can look up the economics behind what such an increase in the minimum wage would do. If you give everyone more money, then the cost of what they produce increases, and gets passed along to - you guessed it....us. Imagine paying $10 for a gallon of milk, or essentially doubling or tripling the cost of everything we buy.
2006-11-07 23:48:53 · answer #6 · answered by bardstale 4 · 1⤊ 1⤋
Now, why are you using common sense? Don't you know that is not allowed.
The only thing you forgot is that some entry level minimum wage jobs are cut to offset the increase in costs.
.
2006-11-07 23:49:12 · answer #7 · answered by Zak 5 · 0⤊ 0⤋
employers have to be able to pay employees wages or they wont be able to keep the business or employees, also well its not easy to explain . And no not everyone will buy new cars and tv before healthinsurance
2006-11-08 01:56:54 · answer #8 · answered by gooplic 3 · 0⤊ 1⤋