2007-01-07 12:45:51 · 11 answers · asked by Mojave 1 in Social Science ➔ Economics
Probably yes, for a short time in some sectors, but it will quickly balance out because the people making a little more money will have a little more money to spend (people making minimum don't tend to have a lot of money stowed in bank accounts) which will in turn create more jobs.
2007-01-07 12:52:16 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Yes, raising the minimum wage generally will result in fewer jobs, particularly among the low-wage jobs. As another writer pointed out, people and businesses will demand less of a resource when prices rise. Labor is a resource, so if the cost of labor for a certain job rises, then there will tend to be less demand for it. This is true unless the job is absolutely required, and can't be substituted for with another means.
Take fast-food. If prices rise for employees, most burger joints will simply hire one or two less workers in order to meet payroll. If they can't, they may try to increase the price of the burgers, but that only leads to fewer people buying burgers, and eventually they'll have to lay off workers anyway.
Raising the minimum wage a little bit today won't hurt as much as some might think, but this is mostly because very few people actually earn minimum wage anyway. If you raise the minimum to a level that my company already pays, then you have no impact. But it's still bad policy, because it will hurt some people, and more importantly, it makes the economy inflexible - if the the economy gets tight, it makes it more likely that people will just lose their jobs entirely instead of possibly being offered wage reductions to keep their jobs.
Minimum wage supporters live in a world of wishful thinking.
2007-01-07 21:33:36 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The laws of supply and demand would imply yes.
What we want is near full employment.
If wages go up, then some people will be priced out of the market.
If we go to an extrem. We cant all afford cleaners for example, but if you only had to pay $1 a day - then a lot more of us would be employing them. So with the minimum wage at $1 a day - and people willing to work for that wage, then there would be more people working.
Thats an extreme value - but we can raise it and the number of people willing to employ cleaners at the new higher wage would go down. (I doubt if there would be any one willing to supply their labout at $1 a day).
However, if the minumum wage is set a sensible enough level, (high enough to make it worthwhile for people to work) and low enough to keep us near to full employment, then we have a sensible mnimum wage. Without a minimum wage, people can very easily be exploited....
2007-01-07 20:55:47 · answer #3 · answered by cambsman_sn 1 · 0⤊ 0⤋
The raise in minimum wage will increase employment.
I don't know what's wrong with you guys. Every industrial nation that has a minimum wage and increases it has proven that is good for the economy. Only in the US where big business and government work together to keep poor people poor so they have slave or near slave workers are the general pubic brainwashed into believing that it is a bad idea.
More money in the economy means more spending more spending means more jobs - do the math and if your government or anyone else you different they are liars.
I wish the American education system actually let you people learn about the rest of the world and how it works.
2007-01-07 21:02:14 · answer #4 · answered by Anonymous · 0⤊ 3⤋
Some states raised minimum wages above federally mandated levels.. it proved to be successful with better cash flow for all involved...
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For what it is worth...
If minimum wage were say $100 an hour.. a single loaf of bread would easily be $30, $60, or even $90 dollars...
Prices will systematically seek their new equilibrium levels.
Does this help any?
2007-01-08 15:42:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If you own a business and government raises the minimum wage, that is an extra expense to you. How will you offset that extra expense (unless you want a pay cut)?
A combination of:
1-increase your prices to increase revenues
2-decrease the number of your employees to decrease expenses
.
2007-01-07 22:27:18 · answer #6 · answered by Zak 5 · 0⤊ 0⤋
No as the wage increase will ultimately be passed on to the consumer in the form of higher prices.
2007-01-07 20:51:18 · answer #7 · answered by Beau R 7 · 1⤊ 2⤋
I don't think so. Most minumum wage jobs have an extremely high rate of people leaving, so there's always a replacement needed.
2007-01-07 20:49:08 · answer #8 · answered by Sugarshots 4 · 0⤊ 2⤋
Of course it will. People will almost inevitably buy less of something at a higher price than they will at a lower price, including labor.
2007-01-07 20:54:57 · answer #9 · answered by Faeldaz M 4 · 1⤊ 0⤋
No, it is only going to effect us by making the prices of everything higher. Fun fun huh.
2007-01-07 20:53:27 · answer #10 · answered by Finesse 3 · 0⤊ 1⤋