Federal Minimum wage?

[MtnBiker]

Is raising the the federal minimum wage always good for people?

Could raising the wage be bad?

[pete311]

Yes it can be bad, money doesn't come from trees (unless you are the fed). If it's too high companies especially small business will end up paying more. They will in turn either try to further automate processes or consolidate time. What happens when they do that? They give workers less hours. Small biz will also end up hiring less people. You also end up driving more business to cheap overseas countries.

Now the min wage should be adjusted for inflation and I'm sure there are plenty of studies showing what an appropriate min wage could be, but it's not a trivial decision.

[MtnBiker]

It is an interesting look at government policies that are meant to do good for people but can actually doing harm.

It makes me wonder that in some circumstances if reavaluing the current federal minimum wage would be better.

[Little-Acorn]

Reminds me of a cartoon I once saw in a local magazine.

A fast-food manager is talking to his crew, seven people standing around him with a broom, spatula, etc.

He says, "I have good news, and I have bad news.

"The good news is, the new Minimum Wage law says I have to pay you more.

"The bad news is, I can't afford that, so two of you are fired."

[pete311]

The interesting thing is that biz might not fire anyone, but instead pass the buck to the customer. You then enter a situation where the employee's wages went up, so did their cost of living.

[Trigg]

I've always thought that the minimum wage was never intended to be a "living wage". It is for entry level people (usually teens) just entering the workforce.

People get their first job, learn skills and take those skills onto their next job where they earn more money.

I definitely think that raising the minimum wage can be detrimental to people because businesses will hire less people to do more work.

When I started working the minimum wage was around 3.25, now it's over $7, it's crazy that the fed is even thinking of raising it again.

[Binky]

Reminds me of a cartoon I once saw in a local magazine.

A fast-food manager is talking to his crew, seven people standing around him with a broom, spatula, etc.

He says, "I have good news, and I have bad news.

"The good news is, the new Minimum Wage law says I have to pay you more.

"The bad news is, I can't afford that, so two of you are fired."

A woman I know who is the manager of a McDonalds, told me the reason why so many teenagers are hired at fast food places is because the federal gov't pays a percentage of their wages. I don't know how much. I'm only going by what she said....

[Binky]

The interesting thing is that biz might not fire anyone, but instead pass the buck to the customer. You then enter a situation where the employee's wages went up, so did their cost of living.

Whenever there is a wage increase such as the min. wage or that of union workers like in the auto industry, it is published in the paper and on the news. Therefore, goods and services jump in price.....Always does. Always will.

[Jeff]

The interesting thing is that biz might not fire anyone, but instead pass the buck to the customer. You then enter a situation where the employee's wages went up, so did their cost of living.

I am afraid you are correct pete, not only that but people that have been working in a mill down by me getting 10 or so bucks a hour, a kid working at DQ is now getting almost the same, The cost of living is absolutley going up but the wages for people that are trying to raise families aren't, my wife works for the state here in GA, they haven't gotten a cost of living raise in over 3 years, IMO most collecting minimum wage are young kids, I know there are others that do also but as a genral rule , at least when I was a kid that is the way it seemed, if they are going to raise the minimum wage shouldn't everyone be getting a cost of living raise ?

[darin]

...when everyone makes $30/hr a 'value menu' will feature items "Only" $15.99!

[Little-Acorn]

Whenever there is a wage increase such as the min. wage or that of union workers like in the auto industry, it is published in the paper and on the news. Therefore, goods and services jump in price.....Always does. Always will.

It's also true that entire union wage scales in many unionized industries, are based on the Minimum Wage. If the Federal Min Wage goes up, ALL the pay grades of union workers go up, from the lowest-paid to the highest-paid.

In case you wondered why unions (and therefore the Democrats they vote for) so strongly favor increasing the Minimum Wage.....

[Jeff]

...when everyone makes $30/hr a 'value menu' will feature items "Only" $15.99!

Got to spread them dmp

[Joe Steel]

The interesting thing is that biz might not fire anyone, but instead pass the buck to the customer.

How?

The firm's prices already should be as high as possible..

[MtnBiker]

Joe Steel has yet to grasp the concept of free markets and the ability of companies to raise or lower the price of their products.

[Mr. P]

Joe Steel has yet to grasp the concept of free markets and the ability of companies to raise or lower the price of their products.

Tis why I call him "Slow Joe". He's every bit of that.