How would increasing the miniumum wage for Illinois $1 (Up to $7.50) help the economy in Illinois?

Answer 1

I don't know were people get their information(just read some of the other answers).First off let me tell you that I'm old, based on the most of the ages I see on Y/A. It has been my experience and I have a lot of it, that when higher wages are paid to employees in a community two things happen almost right away.
One, happier employees, two, the economic development of the community increases(better pay=more money to spend.) More money in a community more chances for new business to do well hence the influx on new business.Many small businesses who pay wages slightly higher than what's required also benefit because staff turn-over decreases. Well paid people working for employers that actually care about their well-being almost always do better as a business than do the companies that do the absolute minimum and don't care about the workers.

Answer 2

Currently, there is no place in America where one can afford to live working 40 hours a week and making minimum wage. Many areas are assessing what the minumum would be to live there and then raising the minimum wage to reflect that. Sometimes it is called a "living wage." It helps the economy because people stay around and work instead of moving away and finding work in areas that are cheaper to live in. Also, those working at the minimum wage level have more money to spend on certain things like groceries, gas, etc. and that boosts the local economy as well.

Answer 3

in the overall run it wouldn't help at all because if the business' start paying higher wages the consumer will pay more for the product and so will other business' making a rippling effect of higher prices. Also there will most likely be more under the table payments to illegals for cheaper wages.

Answer 4

WOW! I must admit that living in Idaho sure leaves you..er..well.. wanting. Our min. wage is still under 5.50 an hour. Okay so I'm being nice, it's really 5.35 an hour. It won't make much of a difference in Ill. I'll wager because as soon as it goes up your cost of living will rise.
Statistics show, when min.wage is raised, the cost of living is raised to compensate. Hmm, you would think that our government would take this into consideration when raising taxes but, alas, here we are!
Congratulations, you have just entered into a zone I like to refer to as the 'New Tax Bracket'! Good luck with that one!
Sound a bit bitter do I ? Hmm, your probably right, because when the average cost of meat is 2.49 a pound and the average cost of milk is 3.00, you pretty much just worked an hour for less than a meals worth of food.
Okay so you can't drink a gallon of milk at one sitting, but, I bet a family with three teenage boys could. And, a pound of meat wouldn't feed two of those boys much less their brother, mother, or their father. Now, the three boys are fighting over the chicken wing and it has become a frenzied free for all. Mom is crying and Dad is yelling. "Sit down and be quiet! I'll get the knife and cut the bloody thing into three parts so you each get a peice!"
Sound silly? I don't think so! But, don't worry! You will get some of those taxes back at the start of the next year and you will be able to eat well then. Oh, your on a diet you say! Thats so nice! Okay, you make 7.50 an hour! Thats 300.00 for a 40 hour week or 1200.00 for the month. Now, your house payment or rent is what,? lets be kind and say you only have to pay 600.00 a month, that leaves you with..hmm..(carry the zero and..oops sorry, doing the math) yes.. 600.00. Now, where were we? Oh yes, you have electric,gas, water..oh some renters are lucky and they don't need to pay water or trash, so now you only need to pay electric, gas..so.. give or take your looking at about 250.00!?! Now this will veri, depending on how cold or hot it gets during the seasons of the year! I hear it gets pretty hot in the summer and down right cold in the winters in Ill.! I could be wrong so you can adjust the thermastat as you see fit.
Now, that leaves you with about 350.00 to, buy food, shampoo, (no conditioner because that is something you DON"T really have to have), cleaning supplies, toilet paper, bar soap, cat or dog food (again if you don't have a pet your one up on your neighbor), pay the phone bill ('cause the boss gets a little ticky if he can't call you in on your day off), gas for your car to get to work, etc.etc.
Now, that leaves you with..what..oh..yes 125.00 left over for the month give or take..But, wait! You didn't pay the taxes on that money so now you are left with nothing else. Because you should have paid your taxes, that were just raise on the last election and voting day, by the way.
But what about your Health Insurance? You get it through your job you say? Hmm, how much of that comes out of your check? You see? Min. wage, weather it be 7.50 an hour or 5.35 an hour is still some of the lowest monies paid. You think I'm kidding? 7.50 an hour in Idaho is garbage if you think about the cost of living here. My only hope is that I am wrong and you have a better cost of living where you are!
Taxes will continue to be paid but I suppose what you really should be asking is how in the world can we stop the inflation that happens after a hike in the min. wage?
Oh and by the way? Rental on a home averages 750. or higher for a one bedroom. Anything larger, say for a family of three or four can be as little as 850.
When you make enough money to pay the house payment or rent you don't make enough money to eat. But, you make too much money to get government help. If you don't want government help you have to get help from yourself by working 50 to 60 hours a week and now you don't see your kids, wife, husband or family.
One more thing before I stop complaining!
A single person who makes 7.50 an hour averages a tax pay of 90. a week. Thats 360. a month or 4320 a year! Multiply that by..lets say.. 150,000 people working for the same wage in your state and you got..WOW.. a whole lot of taxes. Now, I am only talking YOUR state so think about that 50 times.
Okay so not every body in the U.S. gets paid 7.50 an hour, some of them make twice that. Their tax bracket has now changed and so has your cost of living. They say the average pay in America is 9. an hour. You have a calculator, do the math. This is why it will now cost you 2.25 for a loaf of average bread, and 3. for a gallon of milk.
Think I'm kidding? Watch the prices on food in your local supermarket. Watch the cost of your phone bill!
Now, do you beleive that the change in min. wage in your state will help the economy in Ill.? It may for a very short time, but wait for it..........

Answer 5

Well, one way it will help is that it gives more discretionary income to the employee who will turn it over to someone else in the way of a purchase of some sort which increases that person's income and increases the economy.

Answer 6

It won't at all really. With increased minimum wages, to combat this, shops will put their prices up to counter this making the new minimum wage negligible I believe.

Answer 7

you wouldnt expect it to...you should expect a decrease in jobs paying the minimum because of the increased marginal cost of labor.