Short term I can understand some job loss and price adjustments and some time of flux in the labor market, but what has happened historically after the "transition period" when it comes to the raising of the minimum wage?
2006-11-08 14:54:38 · 7 answers · asked by Zloar 4 in Social Science ➔ Economics
One reason I bring this up is in Ohio the minimum wage will be raised from 5.15 to 6.85... a 33% raise! What might this do to the economy?
2006-11-08 15:19:44 · update #1
In most cases very few people actually work for the minimum wage but if employers want to keep employees they must pay above the minimum wage, so it will cause some wage increases at the low end of the wage scale. There will be some job loss, but the number is so small that it is hard to measure because there are other things that have a greater effect the number of jobs. The effect on the cost of living in general will also be small, because the labor cost due to low wage workers are a very small component of the CPI. Historically minimum wage increases have not been very important because they for the most part they just raise the minimum to the prevailing wages already paid to low skill labor. It is usually just "feel good" legislation.
2006-11-08 18:48:01 · answer #1 · answered by meg 7 · 2⤊ 0⤋
Inflation is a constant. Minimum wage going up will help the people on minimum wage to get about 3-5 more bucks a WEEK!! (min wage goes up about 15-25 cents per hr. each time it is raised)
Well it has went up a total of 1 dollar in the past 15 yrs. Some answers above have said inflation goes up with minimum wage.
Inflation is going up WAY faster than minimum wage. I guess people dont realize minimum wage was 4.15 in 1990. But the price of homes has doubled since then and the price of cars has went up 50%.
an extra dollar an hour does not make up for that.
2006-11-08 15:16:07 · answer #2 · answered by AveGirl 5 · 2⤊ 0⤋
The cost of living generally will follow and eventually the minimum wage will need to be raised again, its a vicious cycle.
2006-11-08 14:57:11 · answer #3 · answered by crazzyloo2chris 2 · 2⤊ 1⤋
The private banking cartel known as the Federal Reserve Bank will print more money causing inflation and any gains that the workers might have realized will be lost.
2006-11-08 16:14:51 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Minimum wage is the basis and the heart of ALL prices. As the minimum wage goes, so goes the price of EVERYTHING. So if minimum wage goes up, hang on to your pocketbook !!!
2006-11-08 15:04:00 · answer #5 · answered by Bill P 5 · 1⤊ 1⤋
depends, if that also increases the price of goods then ur real income has not increased at all even though it has nomonily.
Say its real value does increas then i guess there would be an increase in demand for certain goods.
2006-11-08 15:05:23 · answer #6 · answered by king_saberhawk 2 · 0⤊ 0⤋
Will induce more buying power to the working poor which will benefit society.
2006-11-08 21:33:52 · answer #7 · answered by Genuis by Design 3 · 0⤊ 0⤋