do u think its a good idea that the democrats want to raise the minumum wage by 2 bucks?

Question

will this hurt small business and make the price of goods and services increase

Answer 1

They don't take that into consideration. It sounds good to the general public, so they run with it. The the idiots who voted for them cause the rest of us to have to pay the proverbial price.

Answer 2

Eventually, the costs of goods and services will go up, and the fiscal hardship is goingy to be harsh on small businesses.

However, in this country, this middle class is getting to the point where it's nearly non-existent. Large corporations are making money hand over fist through out-sourcing. More and more people are being forced into service jobs that pay less than 10.00 per hour. So what happens, is a lot of big businesses have coffers filled to over-flowing and the average worker has to finance their groceries.

There is however, another consquence that is often over-looked. And that's the standard of living for those individuals who are making between minium wage and double minimum wage. These are the folks who end up paying for the increased services, but who receive no additional funds on their pay check. The middle class life-style is attainable only when someone has reached a payment level of double minimum wage. When someone is earning double the minimim wage in their area, they can usually afford to buy a home if they have avoided getting into a lot of credit debt. It might be a small, modest home, or even a condo, but they can start building equity with it. And that's where a person really builds personal wealth: through equity.

The better approach would be to establish a living wage which is double the minimum wage, and to develop a criteria for receiving the living wage, something like be over the age of 21, working full time, and living independently of one's parents. There could be other criteria, but this is just what comes immediately to mind.

Ultimatey it's the middle class that gets hurt the most by these kinds of hikes.

Answer 3

A few problems:

No free lunch, if wages go up, so does the cost of production, hance price increases in the shops AND for delivery

More tempting than ever for illegals - and more tempting than ever for employers to "hire on the quiet"

Goods from overseas will be cheaper still by comparison, and the inducement to piracy will be greater than before.

As for "small businesses will find a way to make it work" - yes, by either downsizing when their orders fall away, relocating overseas where labour is cheaper - or cheapening the materials to try and still make an honest buck.

You CANNOT have it all ways on, the increase is so substantial, that EITHER the consumer pays for it OR the business does. Most businesses will HAVE to pass on the increase, relocate, downsize or go bust.

Other than that, it seems a well thought out plan :)

Answer 4

Look forward to higher taxes, prices and so on. Anytime a business has an increase in overhead it is passed on to the consumer by raising the price of goods. The only benefit is to the government in being able to collect more taxes owing to the increased wages. Another possible plus or minus depending on your view is that some may make too much money to take advantage of federal programs or it could cause more unemployment by personal decision for the same reason.

Answer 5

I guarantee that if they raise minimum wage 2 dollars then the income tax rate will go up and it will be like your only getting 1 dollar raise maybe. but then the businesses are gonna have to spend 2 dollars more an hour so their gonna have to charge more for their services.

Example: McDonald employee now gets almost $6 an hour. that gonna raise to eight. A high school kid who work 20 hours a week will gross $160 instead of the $120 he's getting now. After taxes and FICA he's lucky if he gets $90 now. After the pay raise, taxes and FICA he may bring home $120 a week. But the price of a big mac will go up a dollar that's for sure. The price of a gallon of milk will go up.

The minimum wage will be higher but people who make more than minimum wage and have families to support won't be able to buy groceries. So we will have more people on welfare. If you make $9 an hour right now and you have a nice office job. You think your bankin' especially if it is your first office job. If they raise minimum wage 2 bucks your only a dollar above minimum wage. But do you think your company is going to raise you salary rate to $11, I THINK NOT!!!!!!!!

Answer 6

It will cause a slow down in job creation. If you had 5 entry level positions available and then suddendly the labor cost per position increased approx 20%, most astute business people would attempt to get by with only hiring 4 people instead of 5. Mutlitply that by the hundreds of thousands of minimum wage jobs in the country and you'll see poverty and unemployment grow.

Answer 7

If it's true, yes it is. There are too many people out there working hard for next to nothing. Small businesses will find ways to make it work.