Does the cost-of-living not increase every year as well? AND how long has it been since the minimum wage was increased? Everyone has to suffer because people don't get an education or, worse yet, drop out of high school?? Yeah some people lose jobs but the ones that are left are the best for the job anyway, giving us better service and goods allowing us to compete with other nations. Maybe I'm wrong, I'm open minded so let me know.. please don't just rant off without some kind of data to back you up.
2007-01-16 03:27:33 · 13 answers · asked by riogrande_texas 1 in Social Science ➔ Economics
The minimum wage will help the employees who receive the increase, there is no doubt to that. But there is a flip side. Basic supply and demand models tell us that if the price of labor goes up, all else being equal, the amount of labor that will be demanded will go down. The situation that we will see is a lot more individuals will be vying for these jobs since the increased wages will cause some individuals who had been unwilling to work before to join the labor market. However, because of the higher price of labor, there will be fewer jobs for these individuals to take. For instance, if we increase the cost of labor by two dollars an hour, do you think Wal-Mart will continue to hire six cart pushers when they could easily get by with the four most productive of them? What will happen is those individuals who's efforts are not worth the minimum wage will be left go. The minimum wage will also lead to increased employment of immigrants who are not subject to the minimum wage. Since these individuals will work for less, businesses are willing to assume the risk to employ them in order to save the money they would have to pay to those subject to the minimum wage. Increasing the minimum wage will simply cause businesses to look more to these black markets in labor. This is just a price floor, and as with all price floors that are set above the level the price would be without the floor, a shortage will result. This will be a shortage of jobs, and other factors will begin to play parts in who gets jobs, much as other factors have played parts in rent controlled areas.
The one upside is that minimum wage is generally earned by teenagers, so the overall impact on the economy will not be as dramatic as it would be if the majority of the population were earning minimum wage.
2007-01-16 04:29:23 · answer #1 · answered by theeconomicsguy 5 · 3⤊ 1⤋
People who think the minimum wage should not be increased are the ones who don't understand how the economy works. Minimum wage should increase now and then in small increments each and every year. The CEO's in this country make entirely too much money that they will never be able to spend it in a hundred lifetimes. All while other people are struggling. The economy needs balance. Don't blame unions for bringing down the economy, instead blame GREED. People would have you believe that if minimum wage is increased inflation occurs and all prices go up and you pretty much end up right where you started but with higher numbers All of which are true except you would be better off and I will PROVE it! Let's say you earn $30,000 per year. Your Mortgage is $500 per month or $6000 per year. If you have a fixed mortgage for 30 years that mortgage payment never goes up. Same with your automobile. So after your mortgage payment for year 1 you have $24,000 left to buy what you need with. Without raising minimum wage for 10 years, year 10 would be the same. But if it is raised 1 % per year at year 2 you would have $24300. Year 10 $27,000. Year 30 $33,000. Get the picture Yet.
Enough said raise it NOW!
2016-04-08 13:33:45 · answer #2 · answered by CARL 1 · 1⤊ 0⤋
Minimum wage hasn't increased since the mid-90s so an increase is in order. My problem is it's such a massive increase. I mean it's pretty close to a 50% increase. If you look at salaries in any area for professional jobs I can guarantee you they didn't have such a jump in that time frame. Why? Because companies can't pay that, they would either go under or move overseas. The jobs that pay minimum wage are unskilled labor. The people that are employed aren't necessary the best for the job, they are people willing to do the job. If it is a good employee the employer can have a choice to pay them $7.50. Raising minimum wage is a good idea but such a drastic raise could have a big negative effect on the economy. People willing to work for $6/hr won't have a job and many companies won't be able to afford to pay employees. And bigger companies will experience a drop in stock prices, which will weaken an American economy.
2007-01-16 03:41:36 · answer #3 · answered by Anonymous · 0⤊ 2⤋
I don't even think there should be a minimum wage just like there should be no maximum wage, the market should decide this
.
Many people here say we should raise it that's is because the public schools do not teach basic economics.
Lets say you started a landscape business you hired 4 guys at $5.15hr your payroll is 52,248 yearly for the 4 employees after overhead your salary is 50K.
Now all things being equal you have to pay $7.15hr that's a total of 59,481 you yourself could take a cut in salary (I doubt) charge your customers more might lose customers or drop one of your employees and work the other 3 harder (possibility) in order to make at least 50k so you see those that say why not raise the minimum wage do not own a business and don't have a clue how the economy works why do you think unions are killing so many industries, because it is not market driven.
2007-01-16 06:12:42 · answer #4 · answered by Ynot! 6 · 0⤊ 1⤋
These "people" that do not think the minimum wage should be increased are earning way more than minimum wage.
I am comfortably wealthy now, but at one point in my life I was not and therefore earned minimum wage. I know what it's like to try to survive on that kind of pay.
I'm not trying to offend anyone but someone has to be the low wage earner. I just think that it doesn't have to be quite so low.
I'm even a conservative Republican and I feel the minimum wage should definitely be increased!!
2007-01-16 03:40:45 · answer #5 · answered by sapphire_velvet 3 · 1⤊ 1⤋
Because it doesn't accomplish anything. The largest population working minimum wage jobs are high school kids.
All that happens when the minimum wage is increased is a mixture of inflation and teenage unemployment. This has been demonstrated over and over and over and over.
2007-01-16 03:48:59 · answer #6 · answered by Anonymous · 0⤊ 1⤋
The people who think that minimum wage shouldn't be increased obviously don't have to live off of minimum wage.
2007-01-16 03:41:32 · answer #7 · answered by Anonymous · 1⤊ 0⤋
if minimum wage increases the al the wages have to be adjusted and this creates inflation(prices to go up). If it was so easy to just increase the min wage without repercussions believe the governemt would do it.
2007-01-17 10:05:13 · answer #8 · answered by ganapan7 3 · 0⤊ 1⤋
Raising the minimum wage doesn't magically create more wealth. Some people will get raises, some people will lose their jobs, and it will all happen in a very artificial way.
2007-01-16 06:54:58 · answer #9 · answered by coconutmonkeybank 3 · 2⤊ 1⤋
Skilled labor is working for 5.15/hr...Try to get that same skilled laborer to do work for the same amount and it just is not fair; slave labor camps..low self esteem; cant make ends meet now or even later because of "catch up"...I said "skilled labor" that is not your drop outs or etc...
I believe that minimun wage should be for ninety days until permanent hire...let the uneducated work for minumun wage because they usually have social security to live on also...
This is PA
2007-01-16 03:37:32 · answer #10 · answered by Patches6 5 · 1⤊ 0⤋