Raising Minimum Wage and Alternative Solutions

Akhilleus

Getting Noticed By Management
So it's well known by now that President Obama feels raising minimum wage will help the poorest Americans get by. They have already raised the minimum wage for federal jobs, and they hope that leads to states raising it nationwide. Raising the wage by nearly $3 would surely make a big difference, but the problem is while it would help those who currently work for minimum wage, what are the results of that?

Not only will prices go up for all consumers, but imagine how many employees will get laid off due to the result of the raise in minimum wage? With employers now having to pay more for work, they will seek to get less of it. Which will also result in slower production as well. Going back to what I said about the prices, we already complain about how things cost too much in stores. They will become even more expensive if companies have to pay their employees more money.

My alternative is this. Raise minimum wage, but for workers over the age of, let's say 25 years old. This way those who are forced to work multiple jobs to support their families get a little more income, and by that age if you're still in a job that pays you minimum wage you will want to move up the ladder and into a bigger position. Anyone under the age is normally just working to have some money to throw around. Most of those kids are in college, or even High School, and at that age the current minimum wage is more than acceptable. If by the age of 25 you are still working at a fast food joint and not on a career path, then you've clearly made a mistake somewhere along the way.

Would this solution work, or is there any other way to go about addressing this problem? Should they simply just raise the minimum wage for all workers, or just let it alone all together?
 
I think your analysis is flawed. How can a culture of low wages grow any kind of economic base for products and services? Conversely, raising wages increases the amount of money in the hands of the consumer, who in return can purchase the products from the employer/s rather than be driven away from them. These companies in turn will be required to employ people to fulfil the increased demand and purchase more stock to fill up on inventory, and the suppliers will too, resulting in production growth, affluence and a manufacturing sector. This takes time and isn't a cure-all, but there's no automatic correlation of increased prices alongside increased wages and some people just haven't figured it out by 25 because of a depressed economic situation. With an increased minimum wage, the person in a low-status job might be able to store a little away to put themselves through school on the side, raise a child to an acceptable degree or simply live on the proceeds of a job that is just as much of a pain in the ass as any other.
 
With an increased minimum wage, the person in a low-status job might be able to store a little away to put themselves through school on the side, raise a child to an acceptable degree or simply live on the proceeds of a job that is just as much of a pain in the ass as any other.

Your point is well taken; the problem is that (in theory) the minimum-wage worker who has seen his income increase will have to pay higher prices for the goods he purchases, based on the notion that the employer who has been forced to pay the higher wages now has to raise the price of what he's manufacturing......in order to pay the higher wages. So, the increase in wages enjoyed by the low wage earner has been wiped out by the higher price he has to pay for the goods he needs.

Of course, if market forces won't allow the employer to increase his prices, he will have to lay off part of his work force, so that the people he keeps will gain from the increase in the minimum wage, while the ones he has to let go wind up joining the ranks of the unemployed.

Does it all balance out in the end? Maybe so.....but you won't think so if you've suddenly found yourself out of work. Plus, if the employer can't afford to stay in business because he has to pay so much more for his work force (and he can't put across a price increase to help him pay these wages), you'll see companies go out of business, which puts everyone on the payroll out of work.

Ayn Rand would have had a field day writing about this.
 
I'm a classified developmentally disabled person who can barely afford an apartment as is. So, raising the minimum wage would really help me because then, I could potentially afford an apartment. I also agree that keeping the minimum wage for teenagers at 8.25. But for people like myself, increasing the minimum wage to 10.10 an hr would help tremendously.
 
Minimum wage can only be a good thing, if it's set at the right rate, and it would have to be done slowly so businesses could adapt their prices over time.

Yes prices go up, but people are more capable of paying because they're earning more. In addition, there's nowhere near as much need for secondary jobs, which opens up employment vacancies for a whole group of people who would be otherwise unemployed. The only people who would suffer are the unemployed and benefit raises would be required to cover the cost of living, but that would be covered by an increase in tax revenue.
 
Here's an alternative solution: education. "An ounce of prevention is worth a pound of cure," said Ben Franklin, and I believe that applies to the minimum wage issue. I'll go ahead and say that, yes, I do believe that the minimum wage should go up. I'm just not sure how much that will help minimum wage earners long-term because, well, a lot of people are dumb.

It's far past time that Americans got our shit together in regards to mathematics. As a nation we're below the international average in math scores, and here in Texas our government is trying to drag that down some more, recently deciding that algebra II no longer needed to be mandatory. I have yet to encounter a money management ordeal that I couldn't figure out using the four basic mathematical operations. It only takes two to balance a checkbook. No one should be allowed to receive a high school diploma or equivalent document without a firm grasp on those operations, yet many do. Many of these uneducated people move on to get minimum wage jobs and lack the ability to keep track of their income and expenditures.

Learning math is only part of being able to manage finances, though. The knowledge must be applied to practical situations. I drive through parts of this city, and I see minefields of money traps for the dull minded: pay day and car title loan stores, Powerball and Mega Millions billboards, Bank of America. Too many Americans fail to keep track of their money or just plain make stupid decisions with it. And the "dull minded" I refer to is not entirely comprised of those underserved by their parents and teachers, mind you. There are plenty of people with fine math skills who are irresponsible with or inattentive to their money. That ties into my last point.

Americans need to learn how to think. We've got to learn the difference between a luxury and a necessity. You can't eat an iPhone or live in a pair of Jordans (unless maybe Shaq gave them to you). Don't tell that to millions of Americans from sea to shining sea who must have the newest and latest, though. And those millions routinely put themselves into, or further into, debt just to "keep up with the Joneses." Living beyond one's means has become woven into the fabric of America, and it doesn't matter how much money you make if you can't hold onto any of it.

So, again, yes I feel that the minimum wage should go up. However, giving people more money won't make them manage it any better. Education is the key to ensuring that minimum wage earners don't just get buried again after receiving a raise.
 
I think another problem is future planning as well. One thing everyone should do is get themselves on a career path. I'm not exactly saying that you have to go to college, but have a plan. Go to a tech school, get an entry level job somewhere. But if you find yourself locked into a long-term minimum wage job then something went wrong somewhere in your life and honestly that is weighs on your shoulders.
 
Minimum wage goes up and then companies raise their prices as the op said.
For example when I was in high school I worked at sit down fast food place called Steak n Shake. It was pretty much McDonald's with waiters and waitress and plates instead of eating from a wrapper.
Anyway every time minimum wage went up they raised the menu prices by that amount. So if minimum wage went up 4% then they would raise the menu prices 4%. In the end it didn't equal any extra amount of money for those working minimum wage and it hurt the waiters and waitresses who for the most part live on tips. Minimum wage went up and the cost of goods and services went up but people weren't tipping more as a result of having "more" money.

At the hotel job I worked at the front desk for 5 years at every time minimum wage went up they raised the prices of the rooms to compensate for it. I always got fucked over because I was making a quarter over minimum wage. My review for the year always came around the time that the wage would go up so they would just tack that amount to the amount I was making and they called that my raise. So there were people who worked there a shorter time than I did who made more than I did because they got the benefit of the minimum wage going up plus getting a yearly raise on top of it.

I'm sure there are several benefits to the minimum wage going up but from my experience it hasn't helped me or anyone else I know. Wage goes up and so does the cost of living. Even the electric company here raised rates when the minimum wage would go up.
 
I'm a classified developmentally disabled person who can barely afford an apartment as is. So, raising the minimum wage would really help me because then, I could potentially afford an apartment. I also agree that keeping the minimum wage for teenagers at 8.25. But for people like myself, increasing the minimum wage to 10.10 an hr would help tremendously.
I have a problem with this, and perhaps it's just in the language of which it's written, so forgive me if that is the case. But as we stand, an 18 year old is as much an adult as a 21 year old. I don't know what benefits there are with regards to disclosure of developmental disabilities to employers and such, and if those benefits outweigh the cost of disclosure.

But I also live in a realistic world, and I know of plenty of 18 year olds who need money for an apartment as well. What if that 18 year old grossly outperforms that 21 year old on the job? Even worse, what if that 18 year old has the exact same developmental disability as the 21 year old? Should the 18 year old still be paid less then the 21 year old, having the same needs, just because the system around it demands it to be so? To me, that encourages the 21 year old to do the least possible amount of work to get by, knowing that no matter what, that extra money an hour is going to be sitting there for them.

As for the 18 year old, it creates a situation known as learned helplessness. For that 18 year old, they learn that no matter what they do, it's not going to be enough. Come raise time, they may get a pat on the back or a "Nice job kid" or even their picture on the wall as employee of the month or even the year, but when it comes down to us, the biggest motivating factor in minimum wage jobs isn't pride in what we do. It's cash, homey, and that kid is learning that simply because they're not a certain age, they can't make as much money as the kid they're vastly outperforming, but is 3 years older than them.

While I don't know the laws on those things, I do know of the programs available. For the developmentally delayed, there are plenty of programs, should they have the drive to seek them out, that help them overcome their disability in the most functional way to help them be as productive as they can on the job. Because, and I have a great deal of empathy for the developmentally delayed, I really do, payment shouldn't be by age or disability, it should be by productivity. And if those with developmental disorders don't seek out every resource available to become as productive as they possibly can, even if that means partial disability, which pays, then they are doing a disservice to both themselves, and to the rest of those people who are developmentally delayed.

Does it all balance out in the end? Maybe so.....but you won't think so if you've suddenly found yourself out of work. Plus, if the employer can't afford to stay in business because he has to pay so much more for his work force (and he can't put across a price increase to help him pay these wages), you'll see companies go out of business, which puts everyone on the payroll out of work.

Ayn Rand would have had a field day writing about this.
Darwin would as well, in a sense. It's Survival of The Fittest, in the truest sense. Think of how many bosses, supervising slacker kids in low paying jobs, would suddenly have to weed out the bad from the good? If he has to cut a few people from his work force, say, the bottom 3 in productivity a month, productivity would go up, as would production as well. The threat of being out of a job, even for the kid who's only working to keep his WWE Network and XBox Live subscription, can be a powerful motivator.

I once had a friend, one I lost touch with, who was a so-so worker. The man, for the most part, did group therapy, so he could bring up a subject, then have the group talk about it. Less work for him, many-a-time. Some days, he cared about the patients he worked with, other days, he was too tired to do a proper group, so he mailed it in.

He once told me, "I'd do anything to provide for my family. I'd even work at McDonald's." Ok, you would work at McDonald's, but how did it get to the point where you lost your job? And if you can't keep a job in the field you willingly went to school for, what would make you work much harder, or even as hard, in a field you consider beneath you?

I would never motivate by fear, but if it came time to fire the least productive person at my place of employment, I know exactly who that would be. Some of the issues that have plagued them haven't been their fault, I'd venture to say most haven't. But it's those self-inflicted ones that would put them over the top, and approaching them with a "Take less money or none at all" would be a difficult thing to do, but one that I could.

I wouldn't want an entire workforce to suffer for the inequities of the one. And if you want to raise wages somewhere, they have to be cut as well, and until production got us out of the red, I'd either take less money in a way agreed upon with my partner, or, if my pride couldn't handle it or my work continued to slip, I would willingly go. My workplace isn't such where it would come to that, thankfully, but if it did, it would be my responsibility to go or pay myself much less until tangible results were shown.

My alternative is this. Raise minimum wage, but for workers over the age of, let's say 25 years old. This way those who are forced to work multiple jobs to support their families get a little more income, and by that age if you're still in a job that pays you minimum wage you will want to move up the ladder and into a bigger position. Anyone under the age is normally just working to have some money to throw around. Most of those kids are in college, or even High School, and at that age the current minimum wage is more than acceptable. If by the age of 25 you are still working at a fast food joint and not on a career path, then you've clearly made a mistake somewhere along the way.
Not the case. When I was 22 and in my second year of graduate school, for instance, I was working a minimum waged internship for 15 hours a week where the rest of the employees, regardless of age, were salaried. This forced me to stay in my college job as well, working there on the nights I didn't have class, as my internship was in the morning.

I worked with people at both jobs above the age of 25, in a so-called "bad job" that people needed little training to do, and a job where people needed years of training, and I worked harder then people over 25 there as well.

It's why I believe production, in any line of work, not age or seniority, should determine raises.

Oh hell. Sally, as is the case almost 90% of the time, is right. Ayn Rand would have a field day here. Read The Fountainhead, which I'm assuming she's referring to, if you haven't, to understand the perspective she's talking about. Even if the philosophy, especially as it has evolved, is horse dung. :p
 
Scrap the minimum wage for the next four years. Let the freeish market have it's time but keep track of low level wages by demographies. If the market isn't supporting a certain goal on average during that four year period reinstate the floor at a rate 20%ish higher than the goal. If they make the goal, rinse, repeat.

Yes, I know my plan lacks specifics and would never make it through the fearful progressives or obstructionist conservatives (not Ayn Randific for them) but I feel it forces the business community to not be so lazy in setting wages and labor to seek out better paying alternatives (possibly even value the job they have).

Can anyone here comprehend this idea and add to it? Rayne, you out there?
 
I was actually talking about 16-18 year olds who are just starting out on the workplace. It's a tricky situation that if you raise one age group you gotta raise them all. If you scrap the minimum wage what's to stop companies from paying you a dollar an hr? That's what the minimum wage is for. To prevent situations like that. Yes, there ARE programs that help with finding and helping the developmentally delayed such as myself, to be successful in todays society. Problem is nobody gives a shit and nobody tells you what they are.
 
Raising the minimum wage doesn't help close the gap of rich vs poor
This is another ploy to create class warfare
Raising wages is a version of redistribution of wealth a Marxist concept
Raising wages would create a mass increase of inflation
This proposal isn't like .25 we are talking about almost three dollars
I think giving tax breaks to companies that have a high per average wage of each employee would be the best way to go
Raising wages is from CBA with a multitude of manufacturing companies is what has caused so many jobs going overseas
Raising wages will cause everything in the economy to go up from prices to unemployment %
 
Raising the minimum wage doesn't help close the gap of rich vs poor
This is another ploy to create class warfare
Raising wages is a version of redistribution of wealth a Marxist concept
Raising wages would create a mass increase of inflation
This proposal isn't like .25 we are talking about almost three dollars
I think giving tax breaks to companies that have a high per average wage of each employee would be the best way to go
Raising wages is from CBA with a multitude of manufacturing companies is what has caused so many jobs going overseas
Raising wages will cause everything in the economy to go up from prices to unemployment %

Raising Wages won't help close the gap? Yes it will. Not as much as people might like, but that gap's really huge now anyway.


Class Warfare? Where? That would help EASE the class warfare. Seriously The gap between the rich and "middle class" is now so huge it's the haves (rich) and the have nots (us)

Marxist? Republican Talking Point much?


Companies don't need anymore tax breaks. WE NEED THOSE TAX BREAKS!

Where's your data to prove that it will cause mass inflation? I've seen no data to support that argument.
 
The class warfare point is what most progressive politicians use to get elected
Inflation is also know as cost of living
You don't have to a economics major to understand if the rich owner of a company has to pay much more in either wages or benefits to make up the difference to insure the same % profit margin you must raise prices or lay people off
If you raise prices in company A than similar companies of B & C that are affected by company A will also either raise prices or layoffs will happen
Marxism isn't a republican talking point it is fact if you were to read the outline ideaology of that political concept
It would be nice if every worker could earn as much as $15 per hour but its not reality
You can't expect job creators to pay top % in taxes,have high wages for it workers,have great benefits for every employee, and hire people
Liberals know this can't happen without layoffs to you will see even more people depend on government and then half of the government will say its that rich person's fault
 
The class warfare point is what most progressive politicians use to get elected

Name five examples.

Inflation is also know as cost of living

OK

You don't have to a economics major to understand if the rich owner of a company has to pay much more in either wages or benefits to make up the difference to insure the same % profit margin you must raise prices or lay people off

But an economics should hopefully be able to tell you why an increase of $2.85 per minimum wage employee per hour shouldn't cause their business to raise prices so drastically that the economy as a whole should suffer.

If you raise prices in company A than similar companies of B & C that are affected by company A will also either raise prices or layoffs will happen

And there are a million other factors that go in to the cost of running a business. Inflation exists regardless. Are you saying we need to do everything and anything possible to keep prices exactly where they are today?

Marxism isn't a republican talking point it is fact if you were to read the outline ideaology of that political concept

Label this Marxism if you want, a society can not survive with such a large wealth discrepancy. It may not be fair to the haves but Its better than continuing poverty and government aid.

It would be nice if every worker could earn as much as $15 per hour but its not reality

Its also not reality that anyone with a semblance of familiarity and understanding of the topic thinks that $15 is a realistic next increase to the minimum wage in 2014.

You can't expect job creators to pay top % in taxes,have igh wages for it workers,have great benefits for every employee, and hire people[\quote]

No but expecting a livable wage is reasonable. And check the math again on the taxes thing. Even the most honest of business owners can find ways to limit their tax exposure. Don't get me started on the honesty of business owners though, especially the ones that pay people $7.25 per hour wages.

Liberals know this can't happen without layoffs to you will see even more people depend on government and then half of the government will say its that rich person's fault

Layoffs will occur by as much as labor is not needed. No one hires or employs another because they have extra money, they employ because the don't want to do something themselves or have need. If an employer can afford to pay people a livable wage is the business even worthwhile to exist?

The system has worked itself out for many years and many increases in the minimum wage. Fight it all you want it can survive a $2.85 per hour bump. Don't forget about the cash that has been dumped in to the economy over the past 35 years. Isn't it time some of it trickled down to the worst off workers?
 
I agree with you on most of what you said George
The five examples I will give you a few: Josef Stalin & Adolf Hitler along with the extreme left of the Democratic Party as in Obama,Pelosi,and Reid
$15 per hour was a reference point because their will be people who will always complain they don't get paid enough
one thing is for sure we don't want to get to the current tax plan that France has were every person making over 1 mill gets taxed .75 for their every dollar
I think the 10.10 wage increase should take place over a 3-5 year plan
Let the economy really grow first
Lets be honest when people look at the market and see how well Wall Street is doing don't people wonder if these companies stock prices are up as much as 60% over the last three years then why haven't they add at least 1% of new labor
If the Fed Reserve stops printing money and handing it over to Wall Street and let the economy go through its traditional cycle because when that bubble burst welcome to economic Armageddo because we havent' even come close of rebound from the Recession of 08
 
Raising Wages won't help close the gap? Yes it will. Not as much as people might like, but that gap's really huge now anyway.

Do you not think like a business owner? When minimum wage goes up, the only thing that changes are prices and jobs. More than likely, those who have minimum wage jobs will be given LESS hours so that they make about the same as they did before. Plus, what does that do for those who work WAY harder than those 7.50/hr people when minimum wage goes up. Just because the minimum wage is raised, doesn't mean everyone else is going to get pay raises. In fact, I'm pretty sure more businesses will likely turn around and keep those people at low wages. And of course, like I said before, when minimum wage goes up so do prices.

The only way I could see this working is if the government can force companies from raising prices for about a year. But because we live in an economy that allows business owners to make their own decisions, that won't work.
 
Forget minimum wage. How about a MAXIMUM WAGE?

I think it's time we as a society decided that no one needs more than say, 50 million dollars in yearly income. Anything in excess of that shall go directly to the government or back into the economy.

Even 50 million seems ridiculously excessive to me, but it's not like I want to strip the billionaires of ALL their wealth. You can still become a billionaire by making 50 mill a year after taxes. If in 40 years, you already spent a BILLION total, you'd still have a billion left.

And frankly, there is NOTHING you can buy with 2 billion dollars that you couldn't have bought with 1.

Of course, this will also spark more illegal embezzling schemes to funnel that money elsewhere. But as long as the maximum wage is regulated correctly, it could definitely help the economy.

Sure, this sounds a bit socialist, but it's not. People can still work their asses off and climb the mountain of capitalism. The difference is that this mountain now has a PEAK.

(And in addition to a general maximum wage, they should add a maximum wage for government officials. No government official can make more than 10 times the minimum wage (around $150,000). If Congressmen want to earn more than that, they have to effectively raise the minimum wage. Raising it to $10 an hour would probably equate to a $200,000 salary cap.)
 
The whole "prices will go up" is really silly if you think about it. You're basically saying "all you need to do to cover increase costs is raise the price of your good". Well, if people would buy your good at an increased price, why not raise it anyways?

Here's the scenario. "Mcdonalds can I take your order?" "Big Mac" "That'll be 20 dollars" "what? I'm not paying that much" "well you see, they increased minimum wage so now that's how much they cost"

Now, what do you think happens next? A) The person says "well okay, here you go" or B) The person says "lol nope" and goes down the street to the burger place that is still keeping it's burgers reasonably priced?

The answer is B. Price won't go up astronomically (if at all), that's a myth. Here are other reasons:
Minimum wage isn't that big of a cost to produce an item usually. So, it's increase isn't going to cause that much of an increase.

You still, as I said, have to hit a reasonable price point. So they'll cut costs elsewhere, say executive pay.

Wages aren't the only expense of labor. You still have the cost of turnover. Livable wages mean less turnover.

Finally, increased wages means increased aggregate demand, so more volume is sold.

On top of all that, I don't want my tax dollars going to subsidize wal mart and mcdonalds' labor. Pay your workers a livable wage.

The argument that "hours worked" or "number of employees" will go down is also not true. You have X amount of workers because you have to take care of Y amount of demand. You really going to cut labor hours because of an expense you can definitely handle? Okay, customer service and thus, sales is going to drop and your competitor that isn't a piece of shit is going to put you out of business.


In my opinion, if you aren't going to raise minimum wage to a livable amount, punish companies that don't. They are causing a burden on society by underpaying their workers. So, for every worker hour you have under $10.10, you owe in taxes. So if you have 10 workers who work 40 hours a week at $7.50, you owe $1,040/week in taxes. I'd also make it something that you absolutely must pay. You are also no longer eligible for any tax subsidies.


Also, PLEASE stop with the "Marxist" bullshit talk. Two things happened after the great depression. 1) We were more progressive in taxing corporations/wealthy more, minimum wage/workplace standards were put in place and 2) the economy BOOMED. Social democracy works best. Not pure capitalism, not pure socialism.
 
Social Democracy doesn't work
Take a look at Germany's unemployment rate 10 years ago and then take a look at Germany's unemployment end of 2013 when they adopted capitalism ideas into their economy of which they abandoned Sociial Economics which most of Europe is under There is a reason why Germany has the #3 economy

If you don't want tax cuts to corporation because you believe the people would be paying for labor then you can't have most states public unions pension costs to the taxpayer of 80% or higher where as the union puts in very little I wonder where all those dues are going

This little thing they call inflation or better known as cost of living does go up when wages increase Everytime this country gets out of a recession you always see inflation go up as high as .5% greater Its basic economics when you inherit more cost there are three options:

Layoffs
Consumer Price increases
Layoff and Consumer Price increases

Its not a Marxist idea its economic fact
More cost must create more revenue
If pure capitalism doesn't work then when it was fully instituted in the US in the 50's then how come that was the greatest economic decade

As far as the depression goes FDR with the "New Deal" got the US out of the depression but the real prosperity didn't happen until the involvement of WWII when supply in demand was at an all-time high and has never been reached since
 
Social Democracy doesn't work
Take a look at Germany's unemployment rate 10 years ago and then take a look at Germany's unemployment end of 2013 when they adopted capitalism ideas into their economy of which they abandoned Sociial Economics which most of Europe is under There is a reason why Germany has the #3 economy

If you don't want tax cuts to corporation because you believe the people would be paying for labor then you can't have most states public unions pension costs to the taxpayer of 80% or higher where as the union puts in very little I wonder where all those dues are going

This little thing they call inflation or better known as cost of living does go up when wages increase Everytime this country gets out of a recession you always see inflation go up as high as .5% greater Its basic economics when you inherit more cost there are three options:

Layoffs
Consumer Price increases
Layoff and Consumer Price increases

Its not a Marxist idea its economic fact
More cost must create more revenue
If pure capitalism doesn't work then when it was fully instituted in the US in the 50's then how come that was the greatest economic decade

As far as the depression goes FDR with the "New Deal" got the US out of the depression but the real prosperity didn't happen until the involvement of WWII when supply in demand was at an all-time high and has never been reached since
What the fuck? Pure capitalism was NOT fully instituted in the 50s. Do you have any idea how high taxes for corporations were for the wealthy and corporations then? We taxed the top more and let the middle class grow. Our infrastructure and education was a lot better funded. I don't know your economic background, but I have degrees in business and economics. There was not "pure capitalism" in the 50s. It takes a proper balance. Yes, you can be too far to the left or right. Too far to the left and you strangle businesses. Too far to the right and you have an oligarchy.

A flatter wealth distribution is healthy because of aggregate demand. Rich people don't spend as much of a percent of their money.

Not to derail this off the topic of wages, but the reason pure capitalism doesn't work is because the foundation of capitalism (competition) is always compromised. There is a classic example against socialism of a classroom where grades are redistributed so everyone passes and eventually the average drops. That's a faulty example because in real life classrooms, there are already "regulations" in place. Everyone has the same teacher, book, and starts out with 0/0 points. In real life, some people start out advantaged/disadvantaged. So the best for the job or the person giving the most effort, without anything to level the playing field, would not get the job. Over generations the odds stack more and more in favor on the side of those born with more.
 
A John Schmitt study for the Center for Economic and Policy Research entitled Why Does the Minimum Wage Have No Discernible Effect on Employment? (<-link) writes in its executive summary "Given the relatively small cost to employers of modest increases in the minimum wage, these adjustment mechanisms appear to be more than sufficient to avoid employment losses, even foremployers with a large share of low wage workers." It then goes on to use relevant data and other economists to show how they arrived at that conclusion.

Just a little light reading for our friend scomvp316.
 
I understand I am in the minority when it comes to this issue and I am fine with that
There are so many people who want to believe into the extreme left's idea that ALL rich people are keeping the average person down
I am not saying anyone here believes that but that has been the message for the last few years
Regardless of what anyone believes poltically the fact remains raising the minimum wage is a version of redistribution of wealth which is a far left idea
Many economist from left and right have mentioned they don't have the problem raising the minimum wage but to reach 10.10 in a more realistic fashion like 3-5 year module
In some states if they were to go to 10.10 it would mean almost a $3 increase
That is a big jump in one swoop
In some businesses especially fast food if you make everyone at least at 10.10 then you also have to adjust the pay for all of management as well
The reason being for that is you don't want an average employee making 10.10 and before the wage hike a closing manager is making 11.50 so you will always have the wage tier in favor of upper management
Maybe not every business will increase their product prices based off of analysis of the market concerned to their business but most businesses will raise the prices
Its a trickle down affect
If you make more and you don't own your own home your rent will go up Thats where the inflation part of the equation will kick in
Your food prices will go up if you have to pay your employees more
I run my own small business and I pay my employees pretty good vs the market
I have always believed if we will have a mandatory wage system then lets cut out the tax loopholes and everyone pays the same for income taxes
I have a business degree as well from a prestigious business school
I suppose business degrees are alot like politics it all depends on how you learned and where you learned and the message of that learning
Always like a nice debate
 
Basic economics shows that raising wages isn't 'redistributing wealth'. It creates wealth for a greater amount of people. People at the top can make money too. It's an idea that has been espoused by people such as one of the most famous capitalists ever in Henry Ford as well as people such as Lord Lever, Steve Jobs and Ron Unz. Bill O'Reilly, that famous Marxist, is famously pro-minimum wage hikes. Here's an article called 'capitalists for a higher minimum wage'.
http://www.huffingtonpost.com/michelle-chen/capitalists-for-a-higher_b_4665733.html

With respect to your business degree and your prestigious school, it might make sense if you account just for the books of your own company and you might take a short-term hit (though evidence strongly suggests otherwise) but we're talking about creating a more affluent society which can only benefit a greater range of people and ultimately mean more spending, more inventory, more jobs and stronger growth. Your post paints a completely speculative and falsifiable picture; the data from the post I made earlier is from real examples. And far-left ideas wouldn't allow businesses such as yours to exist. You'd simply be a branch of the state.

If you think that somehow it's a moral position and that wages should be as low as you can get away with paying then I'd rather you out and said that, because all evidence points to the opposite of your conclusion. It would be more honest. That said I'd love to know where your moral justification came from.
 
So now I don't have morals
You do understand Marxists are left leaning in fact very far left leaning
So raising minimum wage isn't redistribution of wealth Where do you think the extra money is coming from some magical money tree Obviously the "Rich Owner" with added costs will have less especially if GP takes a hit
I love the fact when some people like an idea to "Make things Fair" never offer their money
So your critique is if anyone doesn't believe in a higher minimum wage then they are just evil capitalist pigs

First off I never disagree with a higher minimum wage
What I do disagree with is raising it as much as $3 more in one process
How about raising the wage in a 2-3 year window
Furthermore its window dressing by the far left politicians
Why haven't they brought up this amount before Oh yeah thats right because they figure to stir up their base because otherwise this Nov they are fixing to lose alot of seats in DC
The minimum wage should be raised but its not an entitlement
Most wages are earned based off of prior success and skill set
If "Rich Pigs" just wanted to keep their money they would low ball everyone
 

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