Does anybody know of the effects of a minimum wage increase ?

Question

Yes, it is a political question, because the New Dems will be passing the minimum wage increase soon.
I read news from different parts of the country, and during my perusing, I found a paper that covers a small section of Eastern Ohio.
Ohio passed a state minimum wage increase. The paper interviewed small businesses and most said they have already eliminated at least one employee from the payroll, have cut back on employee hours, and raised prices. One small family owned restaurant has already raised their menu prices by fifty cents per meal, and many others are still crunching the numbers. A subway sub shop has increased thier price twenty cents per sandwich. Ohio's new minimum wage is still below the proposed federal minimum, Ohio's new minimum also calls for annual cost of living increases, the fed doesn't.
How much devastation will the Federal increase cause to the common American worker, and American Small Businesses?

JustMe, are you serious? A meal with meat in it? You make me laugh.
If somebody has to ride a bike to work, he's a luck bastard. If he has to drive, then he has to have a car, pay insurance, pay for gas in some cases, pay to park, pay for maintenance. Your argument is just plain silly. What if that person is one who gets unemployed or has his hours cut?
How does an extr buck help?

Answer 1

The net effect will be exactly as you stated in your details. The thing the Dems miss is that min. wage jobs do not go to people who are trying to earn a living and raise a family - they go to kids and a few people looking to make an extra buck on the side.
I haven't worked for min. wage EVER in my life, and I started working when I was 14.
If the min. wage was abolished, then workers and employers could negotiate whatever wage they could agree on, and EVERYONE would be better off INCLUDING the people working for min. wage right now.

Answer 2

We have had a minimum wage in the UK for a number of years now and have had several increases, currently it stands at £5.35 for over 21's.

It has not lent to any noticible unemployment or indeed businesses going bankrupt as predicted, it has led to lots of companies finding ways around it or cheating the system. In restaurants as an example their are many companies that add 12.5% service charge onto the bill, in a recent study i have found an increasingly large number using at least some of this to pay thier staff. Also with a tip system you may not actually have to pay the minimum wage but account for all tips and count them as wages. Even worse are restaurants that just hide the fact they are paying less than mimimum wage to thier staff (put 20 hours on a payslip instead of 30 that they worked etc), the staff tend to be illegal or working more than 20 hours on a student visa and therefore don't / cannot complain.

So is the minimum wage a good thing, well yes overall i think it is but it needs to be policed very tighlty, so as not to allow a company a competitive advantage.

Answer 3

You need to look at the bigger picture on this. True, there is an immediate financial impact on small business when the minimum wage increases-I have no disagreement with you on that point. However, looking at the total economic impact, the economy tends to do better overall when the basic standard of living is increased for its poorest citizens. These people are able to buy more goods and services, which ultimately increases the amount of money into the economy.

Truthfully, the biggest problem I feel this country has isn't the minimum wage (although I think it's ridiculously low) -it's the lack of affordable health care. The economic burden in this country for the un- and underinsured is tremendous. Until that problem is fixed, raising the minimum wage won't be terribly helpful for the working poor.

Answer 4

The effect might want to correctly be minimum for the unemployment value even as it is going to be an staggering help for the monetary gadget, no longer to talk about how a lot it may also help their lives. i'm now no longer particular the position you have become your info at because you probably did not record any resources. you may want to be in basic terms making all of it up, which i think you're. ensure out my provide. All sorts of news finished by ability of many impressive economists who agree that is going to no longer do any of the belongings you're theorizing. The procuring energy of the minimum salary workers might want to correctly be in many cases prolonged, hence turning out to be call for for more effective client products. The minimum salary back interior the 60's and 70's gave the minimum salary earners more effective procuring energy than they have today. provide an reason in the back of that one away. also, sense pertaining to to the develop the country will see in income collection from taxes. elevating minimum salary is a win-win for absolutely everyone. Get your ideas instantly.

Answer 5

Employers are forced to pay a higher wage. Those companies are forced to charge more for the product. In a nutshell. It sound good in a election campaign, but does nothing except increase prices.

Answer 6

The affects to the worker could mean a meal including meat in it once a week. Allow him to drive to work instead of bicycling. Such a small amount added to a hard working person's salary will mean a lot to their standard of living.

Answer 7

You answered your own question. Excelent job.