Minimum Wage.....?

Question

I asked a question like this about a year ago. What do you think of 'minimum wage'? Shouldn't it have increased by now?

Answer 1

1) It's a price floor.
2) No.

Price floors do not magically lift the amount paid for something. Some people pay $15/case for Milwaukee's Best. Some people pay $30/case for Spaten. If you fixed the minimum price for a case of beer at $30/case, people would not pay $30 for Milwaukee's Best, they would buy Spaten or some other, better, brand, and they would buy less beer, creating a surplus of beer and, specifically, cheap beer.

It wouldn't raise the price of Milwaukee's Best, it would render it illegal to sell/buy Milwaukee's Best for what it was worth, and unless it was still close, that would mean no sales of Milwaukee's Best.

This is also true of labor. Raise the minimum to $8/hour and if your hourly labor at a given task is worth $6.50, you will not be hired / you will lose your job.

Except that with labor, we all start out as Milwaukee's Best and, as long as you're allowed to work, you gain experience and thereby increase the value of your work.

But if you're frozen out of the workforce by virtue of a price floor, you're out of luck.

This is why unemployment is consistantly about twice as high in France and Germany as it is in the US (yes, measured the same way and no, it has nothing to do with unemployment benefits) and why chronic unemployment is even worse - - in the US most unemployment is due to occupation in seasonal / cyclical fields.

Again, I don't know who voted thumbs down on this. I'm not saying people "deserve" to make this or that amount per hour. I'm not saying people who make less than $6.50 would "deserve" to lose their jobs if minimum wage were increased to $8/hour.

Any more than I'm saying that if someone jumped off the Tobin Bridge they'd "deserve" to fall to their death.

I'm just saying they would.

And the Democrats say that they wouldn't fall to their death if only the legislature would repeal the law of gravity.

But you keep voting thumbs down, if you think that will give someone a raise.

Answer 2

Yes, it should've increased by now, but there are people who get to come in from another country and stay here for about 3-5 years on something called a work pass/visa. They get to picket in this country and state what their rights are, and insist that they're not breaking any laws. They work for low wages (sometimes less than minimum wage), but probably only for now. It's just a matter of time before they picket some more and raise the minimum wage (if they threaten to leave or something maybe). That might actually help it get raised.

Answer 3

The minimum wage has to be increased. It is a SIN for there to still be poverty in this country. Raising the minimum wage does NOT cost jobs. In 1991, at the depth of the last recession, New Jersey raised its State minimum wage, Pennsylvania didn't. New Jersey came back from the recession sooner, and lost fewer jobs. Anyone who opposes the minimum wage obviously has never made the minimum wage.

Answer 4

Minimum wage hasn't increased in 9 years; which is why the next one will be gladly received. Inflation is at a rate increase of 3% every year. In 9 years, we haven't raised minimum wage. Do the math.

However, dont know why people are still srepading the "minimum wage will affect .... " myths:

http://www.marylandpolicy.org/blog/2005/04/debunking-myths-about-minimum-wage.html
http://www.universallivingwage.org/factsmyths.htm

Answer 5

Actually corporations can just get rid of minimum wage if they want, so I guess we should be grateful for it. It probably won't be around for long. Then people will get nostalgic about the good old days when there was a minimum wage.

Answer 6

Minimum wages are a ridiculous idea. When you increase the minimum wage, employers raise their prices to consumers. In fact, pretty much everyone raises their prices making the whole thing pointless. The fact of the matter is that wages regulate themselves, If you don't pay enough to do the job, then people won't do the job.

Answer 7

they do no longer comprehend economics. they suspect that in simple terms passing a regulation will strengthen the customary of residing for the poor. whilst it does the different. once you strengthen the minimum salary all you're able to assume are a shrink in hours and strengthen in value and individuals will lose actual earnings. If the minimum salary advance into repealed- it may be logical to assume a minimum of beginning pay could drop in spite of the undeniable fact that this could bring about decrease fees and unemployment.

Answer 8

Increasing minimum wage well increase sales and the own business well not help them because they will pay more to there workers and want have any for them then they will go out of business.

Answer 9

I think that minimum wage is not really a working wage like it is supposed to be. It should have increased a long time ago, and should increase at the same rate that the cost of housing, food, and gas increase.

My thought is that the politicians should be paid minimum wage - then they might vote to increase it so that they, too, can provide for their families.

Answer 10

It is increasing 90 cents every six months for the next 2 years until it reaches $7.25 or $7.50 or something like that.