How do you see minimum wage increases as affecting the economy as a whole?

Answer 1

Nothing good comes from raising the minimum wage.

Every business that employs any body at the minimum wage will raise the prices for the items that they sell.

Here's an example. Years ago, the minimum wage was $3.35/hour. At that time, a McDonald's Big Mac meal was priced at $2.99. The meal cost almost exactly one hour's "minimum" wage.

Currently, the minimum wage is $5.85/hour. And the very same Big Mac meal costs about $6.00 or so.

Do you think a minimum wage earner is any better off?

If raising the minimum wage by a quarter an hour is a good idea, then why not raise it a dollar an hour? Why not make it $50.00 an hour? Why not $500.00 an hour?

I mean, as long as we're making those evil corporations pay for it, then why shouldn't we shoot for the moon?

Answer 2

minimum wage will help the ppl to have a affordable life in the short run but in the long run as the price will also increase, it will not be any good. how ever there is a connection between international trade with this issue. if the country that we're talking about is a small country, then a rise in avarage domestic price level wont effect the international price level. so when the minimum wage will be higher, the price level of the country actually can never acceed the international price level. so increasing the minimum wage rate sufficiently, may make the ppl better also in the long run. :D

Answer 3

No special impact...

Australia, much of western Europe etc. have minimum wage of about 11$/hr and there aren't any problems.

Iceland, Norway, Switzerland all have minimal(no legal, but hrough unions) salaries which are more than double US, all have unemployment below US levels- and GDP higher,social picture is normal, and living quality far higher.

Bear in mind, that 5$ in US includes no vacation, no ill days, no healthcare, no crap... while other countries have higher min wage as well as social system- 10$+ includes heathcare, as well as university, childcare, maternity/paternity and all stuff which cost 100s of thousands $ in US through years.

However, billionares like cheap labor, and like to keep their money in pocket... US has legalised "wage slavery". No wonder there are so many beggars/homeless... people turn to street since min salary is impossible to live on.

America creates its own problems, and then spends money
on keeping 2 million ppl in prison-instead of solving social problems.

I agree that minimum wage shouldn't be 200$ per hour, but at least something you can live on... US can afford that.

This is similar question to the one about vacation-some Nordics, having most vacation, have higher GDP/capita than US, meaning the BIG corps are throwing sand into public's eyes!

To tell you the truth, while i was in US, i was way above average salary, but was still struggling with healthcare expenses and other "hidden expenses" US has.

US has low taxes my ***... sales tax is hidden, property tax...
"poor and sick" tax(cost of healthcare etc.)-the poorer and sicker you are, the more you pay to survive in US.

EDIT-to chocolahoma... your logic is flawed. Some costs can be passed to consumers, but why shouldn't you cut it from fat-cats?

How come Australia, with load of other countries can afford double min salaries along with health insurance, and US can't?

That's right... US is "richest" country, with most beggars, and most social problems.

BTW, by US statistics, only less than 2% people are on min salary... this is probably very questionable. Doubling minimum salary wouldn't have a linear effect on prices- that's a LIE.

The worker doesn't just eat burgers all day... double monthly salary would increase his purchasing power a lot- in short and long run.

Answer 4

That is a tough question. For example, about 10 years ago, a family member was making a low wage, received a raise, and lost his kids health insurance. It wasn't worth it, and he asked his boss to take it back.