The Democrats say they want to help the "working poor", the House just passed a phased raise in the minimum wage to $7.25/hour (over two years), that works out to less than $15,000/year (for full-time). I always thought that it takes $20K, $30K or $40K to just get by in most areas of the U.S. If the Democrats care so much about the working poor, why didn't they make the new minimum wage, $10 - $20 per hour? And given the pawltry amount, why didn't they just have the new amount go into effect immediately? .
2007-01-10 10:29:05 · 5 answers · asked by Tony Z 3 in Politics & Government ➔ Politics
Do you think the Democrat Congress really cares about the working poor? They are doing this to make it look as if they care. The funny thing is that most policies that cost money have unintended consequences. In this case the poor might actually be hurt, here are several reasons why:
1. The price of McDonald's food (all fast food) will go up due to higher costs, and
2. Small business will either raise prices or decrease hiring.
A lot of low income people subsist on fast food, so their food costs are going to go up. And if small businesses hire fewer employees, the ones that are left will be expected to work harder and too bad for the ones that can't find a job.
But a lot of Libs are feeling good about themselves at the moment, and in politics, perception is all that matters.
2007-01-10 13:24:36 · answer #1 · answered by Yo it's Me 7 · 1⤊ 0⤋
A small raise in the minimum wage isn't harmful, but Democrats have fallen off the deep end on this one.
Wage controls (when excessive) automatically create labor surpluses (unemployment). This is basic economics 101. You can't pass the class if you don't understand this.
The natural reaction to a minimum wage increase is a larger number of people willing to work and a smaller number of employers offering jobs. This is what causes the labor surplus.
Our current economy is humming along on the back of low unemployment. The Democrats are telling the American people that they don't have a clue (or dont' care) about the consequences of their actions.
2007-01-10 10:47:30 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Inflation, lack of productivity, chain effect up the wage ladder, unemployment
Why don't we just go ahead and make the minimum wage $100/hour. That way I can pay $10 for a candy bar.
Learn some economics and you will understand.
2007-01-10 10:44:29 · answer #3 · answered by Anonymous · 1⤊ 0⤋
They are already raising it over $2.00 an hour, a 71% increase over $5.15 an hour. It would have been impossible to pass a higher wage than this, especially with a 60% majority needed in the senate.
2007-01-10 10:47:44 · answer #4 · answered by Kwan Kong 5 · 0⤊ 2⤋
because they have to save money to bomb few more countries.
2007-01-10 11:19:38 · answer #5 · answered by james 2 · 0⤊ 0⤋