Now that the minimum wage is going to increase?

Question

does that mean that many restaurants are going to ridicousily raise their prices?

Answer 1

It's basic economics. If the costs go up, then prices have to go up to compensate for the increased costs ... either that or the business employs fewer people and just works the people they have much harder.

The Libertarian stance on Minimum wage is summarized as:

"Skilled, experienced workers make high wages because employers compete to hire them. ... Inexperienced young people can't get work because minimum wage laws make them too expensive to hire as trainees. Repeal of the minimum wage would allow many more younger and poor people to work so they could get jobs, build their skills, and become experienced skilled workers and earn higher wages.

It must be asked, if the minimum wage is such a good idea, why not raise it to $200 an hour? Even the most die-hard minimum wage advocate can see there's something wrong with that proposal. The only "fair" or "correct" wage is what an employer and employee voluntarily agree upon."

Furthermore ... tying the minimum wage to the consumer price index is a serious economic problem. When inflation goes up, the wage goes up ... OK, well that sounds like a good thing, but then when the consumer price index goes down, and the minimum wage doesn't, the net effect is higher and higher relative pay rates which don't even closely match the true cost of consumer goods eventually causing economic collapse ... it's not a question of "IF" ... it's only a question of "When".

Rather than hinging all our futures on something like the Minimum wage, let's rally support for the "Fair Tax" ... that will put a LOT more money in people's pockets immediately, every class, ESPECIALLY the lower income individuals benefit from the "Fair Tax" and it would bring about a much greater level of economic prosperity in the country.

Answer 2

I wouldn't say ridiculously. Prices haven't gone up in MA, and our minimum wage has risen by $.75... but it's only been a week and a half. But even so, I'd say only smaller businesses will have to raise their prices. Larger businesses bring in enough revenue that prices shouldn't go up too much.

And the minimum wage bill still has to pass in the Senate. It isn't law yet.

Answer 3

the authorities ought to don't have any say by any skill on wages. Your pay must be determined between you and your agency. in case you ask for too a lot, the agency can opt for now to not employ you. If the agency received't pay adequate (what many call a "residing salary") you could search for paintings with some different person. the end outcomes of increasing minimum salary are inflation and higher unemployment between those on the bottom of the pay scale. imagine in the journey that they raised the miniumum salary to $1000 in accordance to hour. those who did not comprehend how economics paintings might want to imagine "Oh goodie, i'd be wealthy!" till they were laid off because their agency couldn't have adequate money to pay them that a lot.

Answer 4

As of this writing, the bill still has to pass the senate, then not be vetoed by the president. So it is not currently guaranteed.

Though you are right, there will probably be a price increase in businesses that rely heavily on lower hourly-wage labor.

Answer 5

It's the trickle down effect. If the business is forced to pay you more, then they'll do what they can to recoup that money somewhere because it cuts into their Greed.
So you get the raise, but then whatever the business serves or manufactures will sneakily increase in price.
You really didn't think that they'd raise the minimum wage out of the goodness of their overstuffed hearts do you?

Answer 6

That's the old saw they always use to argue against raising minimum wage, but I really doubt it. But we'll see. I could be wrong.

Oh, forgot to mention: minimum wage here in OR is 7.50 or something and our restaurant prices are no more than anywhere else.

Answer 7

Prices might go up a bit, but businesses won't want to lose customers, so they'll also look to cut costs, too.

Answer 8

why not.. they do every year?

don't other people get pay raises?

doesn't that affect the ecnony the same fashion?
some dumb logic in USA.

Best thing...no pay raises for anyone next ten years....
then everyone will be yelling---pay raise pay raise..

minimun raise should be tied to cost living index.

Answer 9

some might probably small businesses.