I currently make 7.25$/hr in Texas, in the food service industry (as a barista). Over 26 months, the federal minimum wage will raise to 7.25 an hour. I worked my butt off gaining raises from 6.00$/hr. I think it is overall positive that the min. wage will be raised. However, I would feel bitter if the government upped the min. wage; I'd feel that my work wasn't needed and that I could have just waited longer to enter the workforce or just slack.
Anyway, economists promote an idea of a ripple effect. I don't believe I will be making the same wage in 26 months. But if I am making low pay still, how will it effect me?
2007-01-10 14:01:52 · 9 answers · asked by justin_at_shr 3 in Social Science ➔ Economics
PS: My employer pays a min. 6.50 to a max. 8.00 for my position.
Tips are not factored into my wage and I am not required to report them.
2007-01-10 14:29:44 · update #1
A new low... being jealous of someone else for making the same $7.25 an hour that you do when that's not even enough to live off of.
By the way, recent studies show that raising the minimum wage does not increase unemployment.
I believe you can find this in the Mankiw intro economics textbook.
2007-01-10 15:33:37 · answer #1 · answered by askaquestion99 1 · 0⤊ 0⤋
This is a MAJOR bad decision. The problem is already stated in the previous answers. Since minimum wage is increasing, its going to help the people who are currently earning minimum wage and HURT most of the people in the middle class. Whoever is earning between around $7.25 - $15 will see the effect the most. All it will do is increase the cost of production hence price of goods and services and therefore we will see a major reduction in savings as our disposable income in real terms will be a lot lower now.
In my opinion I believe that minimum wage has to increase but increasing it by 20% at a time is a totally absurd idea. If this was phased in to increase at a rate (1%-5% ) per year depending on the economic indicators such as inflation/interest rate/growth it would have been a much better option.
In the end to answer your question you will be hurt because you won't see an increase in your wages but will surely see a drastic increase in the prices of commodities you consume.
2007-01-11 03:00:32 · answer #2 · answered by zoomzoom 2 · 0⤊ 0⤋
You will not get a raise. Also based the laws of economics and people like adam smith, hobbbes, and locke, you are screwed. This limits capitalism, will inhibit the growth of businsess and increase inflation. This, although it looks good on paper is not the answer to our economic problems. It will inhibit new jobs from being created and businesses from growing, thus causing a stagnant economy. Although we aare a rich economy, a stagnent economy according to the above philosophers, might as well be the poorest. The lack of new jobs and surpluss of workers, along with the new inflation will have more people earning minimum wage and make it even harder to find a job and get ahead.
2007-01-11 13:41:57 · answer #3 · answered by nigel 3 · 0⤊ 0⤋
This happened to me in the 80's....
I worked at a fast food joint. Minimum wage was $3.35 per hour and "Student Wage" was $2.85 per hour. Student wage was something that small businesses could pay you if you were a student in high school or college.
Well, the government dropped the student wage law and said that everybody had to make at least $3.35.
I WAS a student, and had started at $2.85, but had worked my way up to $3.40 per hour.
When the law changed and minimum wage was $3.35 for everybody, there I was, at just a nickel more per hour than anybody brand new off the street.
It seemed very unfair to me then, and it still does.
By the way, this was FAST FOOD, no tips involved.
2007-01-10 22:16:52 · answer #4 · answered by Mary G 6 · 1⤊ 0⤋
Actually the effect is going to be negative for you. You've worked for 26 months to increase your earning capacity. Now if your employer wants to hire more help its going to cost him the same as you cost. Which means he won't be hiring as much help, and with the increased cost for people who won't be able to produce as much as they cost its going to be longer before you can get another raise. Not to mention that with less help you're going to have to work a lot harder. Thank your government rep for that.
2007-01-10 22:12:25 · answer #5 · answered by Roadkill 6 · 0⤊ 0⤋
Increasing minimum wage causes job loss.
2007-01-12 10:24:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It may not, food service min wage is different than others, because it's assumed you'll be tipped. Either way, your cost of living will go up.
2007-01-10 22:10:58 · answer #7 · answered by Anonymous · 0⤊ 1⤋
with you or without you, a whole lotta people are gonna lose thier jobs. Thank you Nancy Pelosi and the rest of the Democratic leadership of the house and any of you"RINO's" out there.
2007-01-10 22:19:11 · answer #8 · answered by Anonymous · 1⤊ 0⤋
you could be fired if you boss is unable to still pay all his employees.
2007-01-10 22:21:03 · answer #9 · answered by Anonymous · 1⤊ 0⤋