What's a Fair Minimum Wage and Why?

Question

Federal minimum wage stands at $5.15 per hour (most likely increasing to $7.25 an hour over the next two years).

Taking into account that the cost-of-living varies state-by-state (and some states have their own, higher, minimum wages), what is a fair and appropriate minimum wage?

NOTE:
The best answer will go to the person who also explains “why” his/her idea of a minimum wage is most fair and appropriate. It’s okay if you want to get a bit off-topic (social welfare, healthcare, etc.) but make sure you’re answering the question. If you don’t think there should be a minimum wage, also explain your reasoning.

I have my own opinion but I’ll share in the Asker’s Rating comments.

Answer 1

i personally believe it should be at least $9 an hour, because it needs to cover the cost of living even in the most expensive states. California is one of the most expensive states to live in (i think) and rent can be really high. the minimum wage needs to be able to feed, shelter, cloth, pay for health, etc for each person, and if the minimum wage is to low, people will

- only buy junk food, bucause it is so much cheaper (why do u think so many americans are obese)

- not be able to get thier children (who cannot work yet) clothes, food, etc they need

- not be able to pay rent in a place big enough for at least 2 people (taking into account the single parents with children)

i think the minimum wage should be higher than $9, but many small companies would not be able to do that (unlike corporations) but i believe $7.25 is definatly to low

Answer 2

I think that minimum wage is set at 5.15 for the minimum of what a low budget family could life on in low class conditions. Being that gas has gone out the roof, along with taxes that still linger, there is no way i think that 5.15 can be substantiated so that the poorest of the poor could afford to keep a roof over their head and food on the table. I do think that it's almost certainly proper for minimum wage to go up to a min of 7.25, if cost of living is still going up. When there's will there's a way. In my opinion, i don't even know why everything gets raised cause in the end it evens out. Just more money to transfer.
That was a good questions but my final answer fair is enough to allow someone to make it by in low class budget. Hope that helps.

Answer 3

The fair minimum wage is what people are willing to work for. If people are willing to work for 50 cents an hour, then that is fair.

The government should not be involved in defining this- it should be up to the people who work and the people who hire them. This will drive the cost of labor for jobs to the correct place.

In most parts of the country, the lowest wage jobs that anyone can find are much higher than minimum wage- people won't work for mimimum wage. In my part of the country, the least paid jobs you can find are 8.50 an hour, considerably higher than minimum wage.

Artificially raising the minimum wage mostly helps people who's pay is tied to this- like union jobs who get 5x minimum wage, etc. This is why it is politically poplular.

Right now, with the unemployment rate right about at the lowest it can be (People who are collecting now mostly have under the table jobs or are actually unemployable due to illness, injury, or plain lazyness), there is no real adverse impact of raising the minimum wage, but in a tougher economy, raising the minimum wage increases unemployment and hurts most the people it is intended to help.

For example- many fast food resturants have moved to self- serve soda stations in the seating area. This eliminates 1 full time position over peak shifts. This move was in direct response to increased labor costs.

It is regrettable that so few people in this country have the basic economic knowledge to understand this argument. (particularly democrats!) It is also regrettable that so few American-born people are willing to take a low paying job and work there way up the old fashioned way... but the immigrants are doing that- and more power to them.

Answer 4

personally i might want to be in pick of a innovative salary requirement. If a company thinks that a worker is okay to have operating for a pair years, then they could be required to pay that worker a salary that could want to be lived on in a 40 hour artwork week. it really is how i imagine the salary regulations could be and there could be an organization to blame of adjusting the salary at congress's preparation. Congress is basically too sluggish to dynamically implement necessary ameliorations. Forgetting the above, the minimum salary change is an fairly good thanks to flow as wages are literally not determined by way of the market, they're determined by way of the basically accurate of the salary in any particular section. How a lot company a company is doing has no or too little impression on the hourly salary.

Answer 5

I’m going to quote Milton Friedman, noble prize winning economist, regarding why he thinks there should *not be a minimum wage:
“What you are doing is to assure that people who’s skill are not sufficient to justify that kind of a wage will be unemployed”.

See this video, and jump to 1:55 minutes. It’s an old video, but the concept still holds true.
http://video.google.com/videoplay?docid=6813529239937418232&q=%22milton+friedman%22

Here's a hypothetical: what if a retired person likes to read books every night. Someone says, come read your books at my office, I'll give you a comfortable place to sit and read, when an employee shows up, hit the door buzzer and let them in. I'll pay you $20 a night to hang out from 5-10. The retirees not doing anything, so he says why not? The employer can't afford to pay anymore. Why should the government be getting in these people's buisnness?

Btw, nice question.

Answer 6

I don't think many people outside the economics profession have a grasp on the purpose of the minimum wage. It has nothing to do with the cost of living. The minimum wage should be very low as raising it causes job loss. For Example: Students used to have lots of jobs, like pumping gas after school, but do to increases in min wage that job has virtually disappeared. So now students are free to hang out and get in trouble.

Answer 7

It depends on how many jobs are lost due to the wage increase, if its hurting more people than its helping by employers that can't afford to pay these people then i think that its a bad idea, the minimum wage should be for people still in school, because if your over 25 and still working for minimum wage, your a dumb*** anyway

Answer 8

I think the current rate of $5.15 ,or whatever the amount is, sounds about right. It should be exactly what the name states - minimum. I was having a discussion about this around Christmastime. I do not think it's fair for people to expect to get paid what people with better jobs and better skills get paid. If you want more money then you should get a better education and learn valuable skills. Minimum wage paying job is intended for teenagers and people who do not want a better education, for people who do not need to work but want something to do with their time and earn some extra cash and for those who are retired to supplement their income.

Answer 9

5.15$ is fair I think. If you're a full time worker you should be making at least over 6.00$ an hour anyway... If not, get a different job! Raising the minimum wage only makes after school workers more money. If they raise it to 7.25$ are the people making 7.50$ going to get a raise?

Answer 10

The minimum wage should be based on the gap between the rich and poor. If you look back in the 60s and 70s the gap is shorter and the average family could put food on the table car in the driveway, nice suburban home and one parent could stay home with the kids if they wanted to. Maybe today if parents were home more we would have less school shootings.