Where the money come from?

Question

The Congress raised the minimum wage, they want to make college tuition more affordable and a lot more. Where the money come from? Do Democrats think money is for free? Why Republicans oppose it? Does that increase the US national deficit?

Answer 1

It will all come from the great, big money tree we all have planted in our backyads. Here's a little hint of what is to come. I am a small business owner. My wife and I barely make enough to cover our bills. We don't live all that "Comfortably" and the only time we get a vacation is immeiately after a hurricane -- when there is no power or water. We "employ" three people to assist us. All are subcontractors, they negotiate their own wages, hours and are responsible for their own taxes and Social Security. They did not all "hire" in at the same time, so we must also look at seniority when negotiating pay and priviledges. As the wages increase, the productivity actually remains about the same, so the wage increase cuts into whatever "profit" my wife and I make. What sense is there in owning a business if we make no profit? We have to raise the cost of our products and services to cover those wage icreases. If all of the other businesses are forced to do the same, then where is the increase? The increase is purely in inflation. It all looks good on paper and is a great pipe dream, but that's really as far as it goes. If I don't raise my rates, I will have to let someone go. Not just some idle threat, reality. And state run schools with a lowering of tuition? Does anyone honestly expect the professors, faculty, maintenance departments or deans to take a cut in pay to fund this? Can you say "Hello" to more taxes? Sounds like more inflation to me. Perhaps it's a revisit to the past, say, Johnson's great society? He passed all of these laws promoting more social programs but had no idea as from where the money would come to fund them. Most had to be repealed by Nixon. And by the time Jimmy Carter got into office, his was so out of control, all he could do was to keep "freezing" interest rates and union pay increases. You don't get something for nothing. There is NO "FREE" lunch. If you want it, work for it. Guess history REALLY does repeat itself. Nice.

Answer 2

The law increasing the minimum wage started in the Repulican side of the house at President Bush's urging and both Democrats and Republicans voted on it.
The increased income will generate more revenue from income taxes and help (only slightly) pay down the national debt.

There are no Democrats or Republicans only Americans.

Answer 3

Republicans oppose the minimum wage increase because they say it would hurt small businesses. The Republicans want special tax breaks for small businesses if the minimum wage bill is passed by them. The Democrats say it's impossible for anyone to live on $5.15 an hour. The Democrats say that this low wage ends up causing overcrowding in certain neighborhoods causing a dramatic drop in standard of living in this country. If you earn let's say $6.00 an hour, your gross will be $240 a week, and your net will be about $195 a week. To live in NYC, where there are plenty of jobs, someone earning $195 a week will have to live with six other people earning $195 a week, just to pay the rent and the food bill.

Answer 4

The minimum wage while unnecessary is economically unsound and does nothing to help the average wage earner get ahead. In fact it can do more harm than good. Every time the minimum wage increase so to does the cost of living as employers raise the prices on everything in order to make up the difference in having to their employees more. This is best illustrated with the following example.

Joe works a 40 hour week at minimum wage for his boss Mike. This gives Joe an average of about $659 take home each month. Mike is in the business of selling cogs for a living. The demand for cogs stay about the same and Mike is at optimum production where supply meets demand. Increasing production and selling more cogs is not an option. Mike also has 10 other employees working for him at minimum wage. His total monthly sales are enough to cover wages and overhead leaving a modest profit. Joe and his fellow co-workers barely get by with their wages.

Now lets say the Government raises the minimum wage to $6 an hour. Joe and his fellow workers are excited to be getting a raise as this means their average take home pay will be about $768 that's an increase of $109 in their take home pay. While this is good news for Joe and the others it is not so good new for Mike and other employers. Mikes modest profit is now wiped out by this wage increase and puts him in the red. He is now forced to increase the price of his cogs to make up the difference and consider cut backs just to keep up with the overhead and wages.

Mean while Joe and the others have discovered that almost everything else has gone up and has wiped out the extra $109. And on top of that Joe has discovered that his tax refund at the end of the year is less than last year because he had to pay more in taxes this year. So Joe is still just barely getting by. The minimum wage increase did nothing to help him out. Mike was also forced to layoff 3 of his employees as several of his regular buyers went some place else for their cogs because they were too expensive.

Answer 5

As far as the minimum wage goes, the money comes from businesses. The lie and say it won't cost jobs, but the question is, where are the businesses come up with the money. Either they raise prices, hurting the consumer, or they cut employes or the number of hours they get. Who gets helped?

The college tuition ploy is to create another dependency class.

Answer 6

It come from the proper of a economic fee. Why does it exist because if it didn;t exist there may exist a barter equipment the position you should commerce one ingredient to receive yet another. enable say you've 5 fish and also you pick to for some lobster. reckoning on the quantity of fish that the owner will take exist a fee that the owner is raring to commerce the lobster for. with no economic equipment this international may be unorganized and not able to artwork effectively. It has fee because it help everyone comprehend the fee of ingredient. enable say you pick to purchase a can of pepsi you comprehend that that is round $a million. without funds you does no longer comprehend what the fee is. you should figured it out, that why funds exist. funds exist for the only purpose of putting fee on ingredient and making it universal for all to understand