What was the point of raising minimum wage?

Question

I know this has been asked but I have not seen an answer that really answers this. I almost fell over at the grocery store when I made my purchases. I buy the exact same things and this week my usual $80 turned into $110.

It took my over 10 years with specialized training to go from $3.35/hour to $7.00/hour. Now these kids fresh out of school make almost that? 2 months ago the company I work for DECREASED maximum pay to cover the new hire wage increase. Does that make sense? I can't go any higher?

My budget was already in the red zone due to the fuel hike. (rob Peter to pay Paul kind of thing). If I didn't need internet for work, I would drop that too!

Even my kids noticed 2 years ago we had money, now we don't. My daughter actually asked me if I had a drug or gambling problem! She didn't understand how we went from doing okay to broke all the time. I showed her my check and the bills and yesterdays receipts. "Wow" she said "how did that happen?" You tell me!

I never said I make barely over minimum wage. It took me ten years to double my income. My main problem is that now in order for the company I work for to hire new people at the new higher wage, THEY CUT MY PAY! It took me 25 years to get where I am and now I can go no further!!!! What was the point of rasing minimum wage? It cost me mine!!!! and I had to work my way up!!!

Answer 1

The point of raising minimum wage, was to leave a dangling carrot in front of the faces of the working class who were fed up with inflation increasing at a phenomenal rate making minimum wage "appear" to be even more minimal... Democracy is a joke... The real govt. runs the show and they saw that it was time to up the "ante" a bit, in order to inject more feelings that we are progressing as a democratic society... WE ARE NOT! This is an illusion. The only way to fight the minimum wage, is to take it out of the equation altogether. If you earn wages, you are making a living... If you earn profits, you are making a fortune. Profits are better than wages...If you spend all your time working on your job, you will make a living... If you spend part of your time working on "yourself" you will earn a fortune.

Find something your passionate about and become YOU INCORPORATED. If you would like to be guided and directed in this process, you only need to keep asking the right questions, as you have here... there are thousands of great mentors online like myself that will be more than happy to oblige.

Thanks for reading my answer.

Michael
TRg

P.S. to learn more about me..

Just google "Michael Wentworth TRg"

Answer 2

it is all about making some do gooder feel good. Dont confuse them with basic economics. Not only to the prices of goods increase but the lowest skilled (and thereby most in need of employment) will always be put out of work by increases. MOST minimum wage earners are teens and low skilled workers.
The whole living wage thing intentionally disregards that more often than not, your wage is worth less after it is implemented than your old wage was in terms of buying power.

Answer 3

Well it helps drive up inflation. All people know is money. We believe the more we make the better. When we make more, products go up so other people have to make more. Then in reality people make less as we not have the buying power we once had. Most people not do the math. A good example is Bread. Go price Wonder Bread in the store (Not the Outlet). At one time many years ago, Wonder Bread sold 4 for a $1. Houses sold for $18,000 and the same house today sells for $78,000 (I know my older sister bought and sold one!).

But, there is some good. Take Wonder Bread. Now with it's cost, someone can start Tender Crust and sell their bread for .80 cents.

Answer 4

It makes voters feel compassionate and it makes politicians look like they care.

By the time the actual law hits the streets, the worst hit are the ones who used to make just above the minimum wage. People making minimum wage are basically unaffected other than they pay a higher % in taxes and have less eligibility for government assistance.

Minimum wage increases aren't the only thing contributing to run-away inflation in food, medicine, and tuition, but its definitely adding to the problem.

Answer 5

Great talking points. Minimum wage laws should be eliminated. This goes against a free market society. The market will set the wage, not laws. In effect, raising minimum wages raised the prices of commodities. This is inflation.

Here is one great thing about America. There are always opportunities to increase your personal income. Add additional training, find another job, add a second or third job. These are all valid ways to gain more money.

Answer 6

There are a number of factors--Profits for major corporations is at an all time high--for many of them. Fuel costs (Oil Company Profits) are extremely high and thus the cost of transporting goods has increased. Medical Costs (Hospital, Pharmacy, etc.) has been the fastest growing cost for years. This increases Medical Insurance costs (in part because of the number of families that can't afford insurance-which means that the hospitals charge the insurance companies of those who are insured more to cover the costs of uncollectible bills.) So, while your income MAY have increased, the outgo has increased MORE. Also, taxes should raise to cover the cost of the "War on Terror" -- About 1 TRILLION DOLLARS thus far. So companies are making more, charging more, and making more profits--and your outgo increases faster than your income does.
The simple reason for raising the minimum wage is two fold:
POLITICS
People CAN'T live on the old minimum wage.

Answer 7

clever answer in straightforward terms???? anyone who disagrees with your logic would not need to place up. you're good on. I observed a pair of uneducated fools answer that people who don't have the flexibility to barter wages would be waiting to get extra funds and could stimulate call for by using enable extra human beings to purchase products and amenities. properly, you are able to't placed the cart in the past the horse. call for can not precede manufacturing. manufacturing has to come again first. in case you boost the cost of manufacturing, there'll be much less of it and the cost of the products produced would be bigger. boost minimal salary and extra human beings would be out of artwork at the same time as the cost gets bigger for each guy or woman else thereby slowing financial boost. For God's sakes human beings, this could be a unfastened economic gadget. who're you to assert what an corporation pays an worker. Who interior the $&*% do you think of you're?????

Answer 8

Last year was the last year of cheap food, just ask Chevron. It was presenting on this in 2006. Just ask every manager of every major food distributor.

The price increase has nearly nothing to do with minimum wage. Let me repeat this. The cost of food has nearly nothing to do with minimum wage. Customer selectivity based on price is so extreme that a store cuts its own throat when the prices increase even slightly. The market is highly aggressive in food.

It has to do 1) with farm subsidies, and 2) with the price of oil and the high order of dependence of food on the price of oil.

Protection of the "family farm" using subsidies and market floors is likely to make many more non-farmers go hungry. Welcome to the club. The artificial high cost of raw goods significantly raises the cost of food. Those subsidies are for the most part, eaten up by mega-farms, and not the family farms they were intended to help.

Food is radically dependent on oil. Oil makes fertilizer, pesticide, fuel and lubricant for tractors, energy to move water, fuel and lubricant for harvesting devices, fuel and lubricant for processing plants, fuel and lubricant for transportation of processed foods, energy for warehousing, and stores. That's about 13 parts that are each dependent on oil.

The equation is something like:
(food+subsidies)*(1+percent_increase)^dependence

example:
for a 1% increase, and 13 equal dependent steps
(food+subsidies)*(1+1%)^13
or
(food+subsidies)*1.138
or about a 14% increase.

Ask any supermarket manager. They will tell you that two things are happening: the prices are going up for constant serving size, and the serving sizes are going down for constant price. Many bulk foods manufacturers are now putting significantly less food in the same container, and not changing the price.

Now the price of oil isnt the $100 per barrel for futures that we are nearly at now. Dont let market hype drive you. People who try to make money on fear love it when hype drives you. That is a very short term peak, very much like traffic on the freeway. Yes during rush hour there are a lot of cars. Yes during winter there is a higher price on heating oil. The key is not the peak, but the average over an economic season.

Answer 9

so..your saying that due to inflation (that's things costing more), we should NOT bring up worker's wages? Greedy corporations are going to charge whatever they want for basic necessities (food, gas,etc.) regardless of wages. Minimum wage was frozen for 10 years and we still saw inflation. The working poor put all of their earnings right back into the economy anyway, paying for basic necessities. As for your situation, I'm sorry to hear that your struggling, but after 10 years of training all you can manage to make is .15 above minimum wage? You need to get it together...I'm not even through college yet and I would never except such meager pay. You get in this world what you demand and nothing more, if I were you, I'd demand a little more.

Answer 10

politicians only raised minimum wage to satisfy the multitude of people demanding that they do so, in order for the politicians to "give" themselves another raise.....
With the price of food and clothing, gas and oil, and utilities, an average wage earner doesn't have a chance....
Oh, also;
there is no such thing as a "Republican", or "Democrat", who believes in a fair wage.....they want all of the money for themselves.....and their families.....