Why do people think raising the minimum wage is a solution to anything?

Question

In turn that will only increase the cost of living. Wouldn't the actual solution be to decrease the cost of living?

Face it people, they're never going to permit you to be well to do. The most people can ask for is a means to make a living without killing themself; but, that ain't going to happen.

Look at it this way, if the minimum wage is increased, automatically they increase the cost of living. This leaves the people making minimum wage in the same place, starving; and it puts the people that make more then the minimum wage, making minimum wage or that much more closer to it.

Answer 1

You are right, of course, and it historically has pretty much been the rule that although it sounds good and looks really great on paper, there is always a problem of it being too little too late.

By the time you actually receive the increase, it is too far behind the times. Everything has increased in price by as much as 5 or 10% long before the idea was even conceived. So what you get, is a feeble attempt to meet this increased need, but fails miserably, because the increase in pay was never more than 3%.

It is a Catch 22, and even the minimum wage earnings they are implementing again are so far behind the actual need, it is truly laughable.

Answer 2

It's caused by simplistic thinking. And nobody in power thinks it will help, they just do it to get votes and sound compassionate.

You left something out though. If you raise the minimum wage, you not only just increased the cost of living. You also decreased the amount of real wage everyone else is making. A guy who was making 8$hr. before had some disposable income. When everyone else who was making 6$hr. (mostly teenagers) got a wage hike to 8$ hr; the other guy got a real world 2$ wage cut. Nice. Then the prices go up, so he actually got his wage cut more than 2$ an hour.

Hiking minimum wage needs to be put in The Big Book of How to Destroy Your Economy.

I used to live in the Middle East, and at one point the Israeli government, being one of the larger groups of geniuses in the history of mankind, decided to solve the massive poverty problem they were having by increasing minimum wage from 18 shekels an hour to 30. It of course didn't really help, so being geniuses, they did it again, and again, and again. In the 80's they ended up having to knock three zeros off the shekel and reprint the currency because a falafel sandwhich cost 12,000 shekels.

It does help people with mortgages though. They have to pay back 140,00$s whether 140,000$s is worth 140,000$ or 140$ because you kept hiking minimum wage.

Answer 3

People do, I don't. It also make it difficult for small businesses to stay afloat. It absolutely raises the cost of living and forces inflation. There is no real way to reduce the cost of living but the minimum was is usually paid to unskilled laborers and when they become skilled their pay is increased. Raising the minimum wage will ultimately result in less people employed while those who are employed at minimum wage make slightly more money and continue to go into debt. Yet the majority of people vote for increases, it's really shocking that they can't think.

Answer 4

And NOT raising the minimum wage will solve something? At least raising the minimum wage makes some inroad against the huge earnings disparity between the base worker & the CEO. You know, the examples of workers at minimum & the CEO at 100 to 500+ % or more. I understand in Japan, policy is the CEO is limited to a 10 or 20 times ratio. Yeah, yeah, that is Japan. But not too long ago we were scared at their progress.
Cost of Living calculations can be minipulated like any other figure. Factors contained in the formula do not always apply to everyone (i.e. rent/mortgage rate not really applicable any longer for persons who "own" their home).
In Missouri, the voters increased minimum wage to $6.50. One, I believe the population recognised $5.15 was not adequate. Secondly, I believe they were sending a message to employers that taxpayers were not going to continue "corporate welfare." Wal-mart will be in the news quite a bit for the next 2 years. States will be demanding affordable healthcare coverage in lieu of workers having Medicaid.

Answer 5

you sound selfish,but they should decrease the cost of living i agree and make minum wage atleast 8$(they should decrease the cost of living and raise the minum wage)

Answer 6

It means another trip around the merri-go-round for many people .

Answer 7

Because it is a thing egalitarians do to feel better about them selves.