Seriously folks. Take a long, hard, logical, economic look at it and tell me how it wouldn't hurt the economy.
2007-08-02 09:53:59 · 19 answers · asked by Peatear Griffon 3 in Social Science ➔ Economics
Although one might think that making employees more expensive would mean that employers higher less of them, the actual effect is often too small to be measurable.
You might ask yourself why it is the US went through significant periods of growth with a real higher minimum wages than today. It is simply not that significant.
Also, it gives owners an excuse to try to raise prices. They may come to the conclusion that all similar will raise prices due to the increase in the minimum wage. Although this won't cause a sustain inflation (as one answerer suggested), it might make a few prices rise a bit.
And, although some firms are just on the margin of breaking even and will go out of business at the slightest increase in costs, many firms make short term profits and can absorb the higher labor costs.
There is another argument which has to do with the transfer of wealth to the poor. The poor save less than the middle class or rich, so a minimum wage increase stimulates overall spending, which increase aggregate demand which can lead to higher growth.
2007-08-02 10:12:09 · answer #1 · answered by Anonymous · 3⤊ 2⤋
This is the first Q and A in a long time that I'm actually quite pleasantly surprised with in the economics category...
There appears to be some very good, solid answers to your question. I would add...
Other countries throughout the world do quite well with a more even distribution of income (not that an increase in the minimum wage will do much to rectify that situation in the US).
Together with all the other good points made, I believe that no, it would not hurt the economy... Henry Ford was right.
Peace
2007-08-02 17:55:23 · answer #2 · answered by zingis 6 · 1⤊ 0⤋
Apply for every job you can find. For your daughter's sake you have to put life on hold and bring in some real money. I'm sorry I'm not really helpful in this situation but I guarantee if you think of your daughter you'll make bigger and more productive risks. Until you find a well paying job is there a relative or friend that you can stay with? If not your daughter and you is there someone that will take your daughter in, feed her, clothe her and such and simply give you a place to sleep at night? If things get really bad you may have to move to a place where you can find work. Try telling your story to locally owned businesses and see if they will hire you on and simply pay you by the job (such as $20 up front to clean the floors in the store). Try talking to your daughter's school or a local soup kitchen for information on a possible loan that you can get and pay back over the course of many years. Best Wishes, Amanda
2016-05-21 03:07:07 · answer #3 · answered by ? 3 · 0⤊ 0⤋
The minimum wage has been raised a number of times in this country and we haven't crashed yet. It's this or 90% income tax for those making over $200K. The disparity between rich and poor hasn't been this great since just before the Crash of '29.
I'd like to think that the USA isn't a third-world country with no middle class and the poor begging, stealing and dying.
As for official economic viewpoints, over half the Nobel Laureates in economics signed a letter saying this was best for the economy. Find it and argue with them.
2007-08-02 12:39:08 · answer #4 · answered by Sarah C 6 · 1⤊ 1⤋
If the minimum wage raise is such a horrible idea, what do you propose we do to help those people who are stuck working minimum wage jobs and having to struggle just to put food on the table and a roof over their families' heads? Have you ever had to work a minimum wage job? Have you ever had to try to support a family on a minimum wage job? Seriously. Take a long, hard, real-life walk in the other people's shoes, and tell me how not raising minimum wage would be a GOOD idea.
2007-08-02 10:13:49 · answer #5 · answered by Nerys 4 · 1⤊ 2⤋
Marty Freidmann, explained it best the intention of mininum wage is good, but in realty the lowest skilled workers are priced out of the job market by raising the wages, and that affects all workers with higher prices, and raises inflation. Minimum wage is anti-poor legilisation actaully.
2007-08-02 11:39:45 · answer #6 · answered by ram456456 5 · 0⤊ 1⤋
Yes, some people think that it will hurt the "American Economy", but they probably aren't actually concerned with it's direct effects. Those who live on minimum wage are ineligible for welfare, yet somehow still barely alive.
2007-08-02 10:02:28 · answer #7 · answered by Nick S 1 · 1⤊ 0⤋
I agree. We can thank the supporters of minimum wage hikes for such unskilled labor-saving innovations as pay-at-the-pump at gas stations, self-checkouts at Wal-Mart, automatic drink fillers at McDonalds, ATMs, automated phone answering systems, etc., etc.
I bet the people these things put out of work love it.
2007-08-03 03:20:33 · answer #8 · answered by ZepOne 4 · 1⤊ 0⤋
In theory it could slow economic growth, but minimum wage isn't enough to live on.
2007-08-02 09:57:24 · answer #9 · answered by snapple232 3 · 2⤊ 0⤋
Raising the min. wage will accomplish only 1 thing for sure, cutbacks by businesses, therefore less jobs
2007-08-03 03:44:52 · answer #10 · answered by William S 1 · 1⤊ 0⤋