Ok, I live in Indiana, the minimum wage is only $5.15 an hour? Are you kidding me? Why is it half the east coast got jacked up to over $7.00 an hr but we're not? Isn't it a federal thing?What makes the east coast have higher wage than midwest? Aren't all the states under the same federal government? How in the hell is anyone supposed to live off of only 5.15 a damn hour?!
2006-12-26 18:45:20 · 11 answers · asked by Anonymous in Social Science ➔ Economics
The first 6 questions have the same answer: The federal wage is $5.15; states are allowed to set higher minimum wages if they like.
The answer to your last question is also an easy one: They're not. However, being that the largest group of minimum wage earners in the United States are high school/college students with little to no skills; they are typically being paid what they are worth.
Raising the minimum wage does nothing but increase unemployment among minimum wage earners, or increase prices, or a combination of the two effects, depending on how mobile labor is.
2006-12-27 13:59:30 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I understand that you feel like you can't live off minimum wage. However, if the entire nation increases minimum wage, then the cost of living is also going to rise. So, just because you are making $7 an hour, does not mean you are going to be able to live off more money. Employers have to make up the extra money they are paying by raising prices. As a consumer, you will begin to pay more for products. So, it is a catch 22. The only thing you can do is find a better job. If you have good availability, even McDonald's will pay $8 or $9 an hour. Just look for something better. There are tons of options out there.
2006-12-26 18:49:43 · answer #2 · answered by bashnick 6 · 0⤊ 0⤋
Apparently you are making the federal minimum wage.
Part of the problem is supply and demand, part of it is greed.
In Indiana, they can probably find someone else to fill the job at 5.15 or they'd pay you more to keep you. On the east coast, due to higher cost of living, etc. people demand more/need more money to get by. Thats the supply part.
The greed part is how much you get for your productivity. For the last number of years, the owners/bosses have been skimming more from the working/middle class. They can do this by busting unions, bringing in foreign workers or shipping jobs overseas.
Those who say laborers should just upgrade their skills are missing part of the picture. With modern communications and travel, a lot of seemingly 'safe' high-end jobs are going to be next on the chopping block.
There will have to a political solution in the long run. Nobody should have to work for slave wages.
Peace
2006-12-26 22:29:25 · answer #3 · answered by zingis 6 · 1⤊ 1⤋
They don't understand economics. They believe that simply passing a law increases the standard of living for the poor. When it does the opposite. When you increase the minimum wage all you should expect are a decrease in hours and increase in price and people will lose real income. If the minimum wage was repealed- it would be logical to expect at least starting pay would drop however this would lead to lower prices and unemployment.
2016-05-23 09:54:47 · answer #4 · answered by Mary 4 · 0⤊ 0⤋
States even county or municipal governments can raise the minimum wage above the federal law. However, they can not go below the federal law. Minimum wage is important not to just those who work at jobs within that pay range, but for all workers. Bottom line the lower the bar the less high others will be.
2006-12-26 23:49:01 · answer #5 · answered by John 2 · 1⤊ 0⤋
It all needs to be looked at in the context of cost of living. How are the stores going to cover the cost of increased labour? Raising prices. So nothing was gained except the misled public voting on making it tougher to get what you need if you don't make much and knocking out weaker mom and pop shops. Best of luck to you, but it is foolish and extremely unwise to vote in raises of wage. The day after voting, a famous brand of pizza company raised all the pizza prices 1 dollar. When asked, he said that minimum wage went up so he raised his prices. He was informed that the wage hike would not take place for 30 days and his reply was that he might as well make a few bucks while he was at it. CRAZY!
2006-12-26 18:50:52 · answer #6 · answered by Lori S 2 · 1⤊ 0⤋
No one is suppossed to. Its just not possible.
On the other hand, think of this. All those people who were making 5.15 an hour that went up to 7 bucks - they just got a huge raise. What about the people who have been at the job long enough to earn that raise (over time) and just got the shaft?
You essentially gave them a pay decrease.
Anyhow - to answer your question - work hard on getting a better job.
2006-12-26 18:48:15 · answer #7 · answered by freshbliss 6 · 0⤊ 0⤋
5.15 does suck, but it's not a Federal decision. It's also based on the cost of living. Eastern states probably have a higher cost of living than where you're at, hence the increase in wages.
2006-12-26 18:47:50 · answer #8 · answered by catwomanmeeeeow 6 · 1⤊ 0⤋
there is a federal wage and a state wage some states raise the wage because if they didn't people wouldn't be able to live there
2006-12-26 20:45:36 · answer #9 · answered by homo.jesus 2 · 0⤊ 0⤋
Minimum wage is kept low to keep peeps down. The more money you have the more power you can exert
2006-12-26 18:47:26 · answer #10 · answered by ? 7 · 1⤊ 2⤋