Minimum Wage Increase = More Expensive Prices on EVERYTHING...?

Question

Why do people not see that a minimum wage increase merely raises the price of everything you buy to the point that the "wage increase" is meaningless? Do you honestly think that every company that is forced to pay more in employee wages is NOT going to raise prices to cover the cost increase? That's just ignorant.

Answer 1

Welcome to a Republican Run Country.

Answer 2

Though, the cost everything has gone up in recent years, but minimum wage has not. Also, the cost of products get spread across the whole product - a stick of butter isn't going to go up $5 because the employee gets a five dollar raise.

There are societal ramifications for a wage increase, which includes a higher living wage allows parents, for instance, to take fewer jobs and stay home with their kids. In that scenario, statistically, parents who stay home with their kids have kids that tend to do better in school and get into less trouble.

The other issue is that the more money the bottom earners have (whose money is mostly going to taxes and utilities), the more there is to go into the market.

I personally think an increase in minimum wage would do more for the economy than a one time $300 gift check from the government.

Answer 3

It is estimated that 5% of the work force (7 million) will receive a pay increase of averaging less that $2 per hr. if they work 2000 hours a year it amounts to at most 14 billion dollars in a 10 trillion dollar economy, or .14%. Since the inflation rate is between 2 and 3% you could not even measure the effect if the entire increases were past on as cost increases. People who can't do arithmetic should not call other people ignorant.

Answer 4

Well, people do not like to think about this stuff since it gets too complicated. And Min. Wage = More Exp. Price is just a theory. You will never find any evidence that shows that increase in min. wage will raise price. I will be surprise if someone does an extensive research and actually find something closely related result.

It is just a political tool that politicians like to use to gain favor from workers, low end workers. Low end workers have right to be ignorant since they are the ones that will be affected greatly.

Even though there is not evidence, I do agree that min. wage is bad for economy and for entire population. Funny thing is, I believe middle class get hit harder than others. If you are a CEO of a firm, you will be glad to layoff some 40,000 to 100,000 dollars employees first, because you can make up so much. Cutting $6/hr jobs would mean you have to cut too many of them and it would affect your production too much. As time goes on and no change in Demand, you are going to either outsource or cut more employees. Well, in order to actually know if prices go up, you have to study each sectors and closely study the Supply and Demand and market function.

Even though I might not agree this in economic terms, I do like the idea for welfare for America. The idea is good, no matter it works or not. You will never know if it works or not. Maybe you might want to do a research on this issue and grasp something that people don't usually find. It does help people who are being taken advantage by capitalism. Best example? Wal-Mart. I don't blame Wal-Mart, but they are taking advantage of low end employees. Min. Wage does give some powers to low end workers in this way. Just my thought~

Answer 5

The prices of some things would probably go up, but perhaps a greater danger is less employment for unskilled workers. People whose productivity is worth less than the mandatory wage will be priced out of the employment market; also businesses that rely on low wage labor will be less likely to open new stores into that environment.

But you're right, sorry you Utopians out there, something's got to give -- there's no such thing as a free lunch.

Answer 6

Realistically the federal minimum salary replaced into no longer created to help someone attempting to help a relations. that's meant to be what you pay area time help and youthful ones in college. raising it to 7.15 is totally not likely to help those who're attempting to help a relations in this (the residing salary - what's had to help your self - is envisioned at $10 an hour). Getting the operating unfavorable at or above this reduce seems to require more effective than purely raising the minimum salary. you want to get workers to comprehend what they're worth, and employers to be extra variety electorate - paying what human beings deserve. The counter argument is both furnish and demand determines workers earnings, or individuals are paid what they deserve because of a free monetary gadget. i will not disagree there, yet extra attempt must be positioned on education those that they don't look to be constrained to operating at McDonald's or places like that. This pastime, and the present minimum salary artwork out okay for the highschool pupil who's attempting to earn some extra funds, or the retiree who's purely attempting to keep from being bored. The demanding area is attempting to coach all and dissimilar else to locate what they're good at, and use it to their earnings.

Answer 7

no, i am sorry but you have to have a basic grip on economics to understand why not. It all has to do with elasticities of products. look it up in any introductory to economics text book.