9 Reasons Why Raising the Minimum Wage Is a Terrible Idea

[Groundpounder]

http://reason.com/archives/2014/03/03/9-reasons-why-raising-the-minimum-wage-i

[leadfoot4]

From the article:


7. It would eliminate jobs. Ordering businesses to pay entry-level workers more will make them hire fewer of them, and consider replacing more workers with robots or computers. That’s good if you are in the robot or computer business, but not so good if you are trying to combat unemployment. The nonpartisan Congressional Budget Office estimated that President Obama’s proposed $10.10 wage, once fully implemented, “would reduce total employment by about 500,000 workers.”


BINGO!!


I retired from full-time work in 2008, after 37 years in the workforce. A year later, while shopping for some parts for one of my auto projects, I was recruited to work part-time, driving a delivery truck for the parts store. My starting wage was $8.50, and 5 years later, I make $9.05. (who knows HOW they come up with these odd amounts!!) A few weeks ago, a couple of my fellow drivers were discussing wages with the store chain's district manager, and they were saying that they felt that the job should pay more, considering the risks/responsibilities. The manager responded by saying this job will pay $9.25, MAX.

So, if the government overrides the manager's assertion, does anybody here honesty think that the store won't simply fire drivers, in order to hold the line on costs??

[Groundpounder]

Here's another explanation from an economics professor:

Does the Minimum Wage Hurt Workers?

[bakes]

Every one of these reasons has been debunked.  Here's the bottom line:

1. It costs a certain amount for people to live.

2. The minimum wage doesn't cover that amount.

3. Since it doesn't, the people receiving minimum wage have little choice but to apply for welfare to make ends meet until they work their way up to a better paying job.

So, we have two choices, pay welfare, or raise the minimum wage so that people won't need (or qualify) for welfare.  Frankly, I don't feel like subsidizing the Walton billionaire family so they can pay a cheaper wage.  Raise the damn thing.  People have more money, they will buy more stuff, which puts dollars back into the economy.

Unless you somehow believe that supply side economics works despite 30 years of evidence to the contrary...

[Groundpounder]

Every one of these reasons has been debunked.  Here's the bottom line:

1. It costs a certain amount for people to live.

2. The minimum wage doesn't cover that amount.

3. Since it doesn't, the people receiving minimum wage have little choice but to apply for welfare to make ends meet until they work their way up to a better paying job.

So, we have two choices, pay welfare, or raise the minimum wage so that people won't need (or qualify) for welfare.  Frankly, I don't feel like subsidizing the Walton billionaire family so they can pay a cheaper wage.  Raise the damn thing.  People have more money, they will buy more stuff, which puts dollars back into the economy.

Unless you somehow believe that supply side economics works despite 30 years of evidence to the contrary...

Debunked by whom exactly? The Obama administration who has proven time and again since 2008 that they lack the most rudimentary understanding of economics? I guess they know better than the chairman of the economics department at Harvard University who cited this study (http://econlog.econlib.org/archives/2014/01/minimum_wage_no.html ) in his blog. It has absolutely nothing to do with supply side economics, it is simply the laws of supply and demand at work, since labor is a commodity just like any other good or service in the economy. The only reason for a politician to support a minimum wage hike is to win the votes of people who lack an understanding of economics, Unfortunately, that's a majority of voters.

And since you brought up supply side economics, I look forward to the day it is actually given a shot, without all the cronyism and government intervention that has been around since at least the 1930's.

[leadfoot4]

Every one of these reasons has been debunked.  Here's the bottom line:

1. It costs a certain amount for people to live.

2. The minimum wage doesn't cover that amount.

3. Since it doesn't, the people receiving minimum wage have little choice but to apply for welfare to make ends meet until they work their way up to a better paying job.

So, we have two choices, pay welfare, or raise the minimum wage so that people won't need (or qualify) for welfare.  Frankly, I don't feel like subsidizing the Walton billionaire family so they can pay a cheaper wage.  Raise the damn thing.  People have more money, they will buy more stuff, which puts dollars back into the economy.

Unless you somehow believe that supply side economics works despite 30 years of evidence to the contrary...

No, if all you're qualified for is a minimum wage job, you actually have 2 options, and NEITHER involves welfare. Option 1 is get your azz back to school, better your educational background, and get a better job. Option 2, if school doesn't interest you, is get ANOTHER minimum wage job, and maybe between the two of them, you'll have a reasonable income. There are 24 hours in a day, and sleep is highly overrated......

[Gomerpyle]

Quit buying Tobbaco and Alcohol would put ALOT more money in there pockets too.

[leadfoot4]

Quit buying Tobbaco and Alcohol would put ALOT more money in there pockets too.

Interesting that you should mention that. I've often wondered why the people who seem least able to afford cigarettes and beer, are the very ones who seem to consume the most......

[jdd00]

Every one of these reasons has been debunked.  Here's the bottom line:

1. It costs a certain amount for people to live.

2. The minimum wage doesn't cover that amount.

3. Since it doesn't, the people receiving minimum wage have little choice but to apply for welfare to make ends meet until they work their way up to a better paying job.

So, we have two choices, pay welfare, or raise the minimum wage so that people won't need (or qualify) for welfare.  Frankly, I don't feel like subsidizing the Walton billionaire family so they can pay a cheaper wage.  Raise the damn thing.  People have more money, they will buy more stuff, which puts dollars back into the economy.

Unless you somehow believe that supply side economics works despite 30 years of evidence to the contrary...

Minimum Wage Increase = Inflation

There's no way around this. If minimum wage gets increased, prices everywhere get increased in order for employers to maintain the profit margins that they currently have (and as employers, are entitled to).  So, now the prices of goods and services everywhere are rising--It's not just "people have more money so they spend more."  People making minimum wage are content, because they just got a raise.  Problem is: employees making more than minimum wage are now extremely unhappy since they received no such raise, yet the costs of goods and services are going up.  Now the people making more than minimum wage are unable to afford bills and expenses, and those making the new minimum wage have not benefited either since the costs of goods and services are increasing, leaving them exactly where they were before.  Everyone would be spending more money, without more return for that money.  This isn't some new, revolutionary economic idea, it's very basic economics.

 Does it suck to make minimum wage and, therefore, live with little affluence?  Sure does, I've done it.  However, raising minimum wage just to make people feel better and make them "think" they are getting more money will only worsen the economic condition we are already in. 

You don't want to subsidize the the billionaire Walton family?  Then don't shop there.  Feel offended that a billionaire family would pay such a "cheap" wage?  Don't work there.

[leadfoot4]

"jdd00", well stated!

[leadfoot4]

Dragging up an old topic.....



I read in Rochester's 'Democrat & Chronicle', today, yet another article about raising the minimum wage in NY, and how it's going to make life better for everyone. And once again, the business owners have stated that if they have to do this, it will increase their cost of doing business, therefore, in order to hold down costs and prices to their customers, they'll cut their employee roster.

Doesn't Andy Cuomo ever learn??

When I was a teen-ager, I had a couple of friends who worked in "fast-food". It was simply an after school and/or weekend gig, for some "pocket money". It was by no means a career choice. I had a job as a "utility helper" in a family owned/operated bakery. Same deal, after school and Saturdays, for a little over minimum wage. It was simply for "spending money", until I grew up (somewhat), and got a "real job".

But since the NY Government has driven up the cost of doing business here, businesses have left, and taken their skilled jobs with them. McDonalds and WalMart, slowly but surely, are becoming the only show left in town. That still doesn't mean, however, that the WalMart greeter's job should pay $15/hr. I started as a work/college co-op guy, in 1971. The position paid $3.25/hr, and led to a career with a number of job skills. Still, it took a lot of years before I got to $15/hr; and even more before I exceeded that. And along the way, I had to provide my employer with work that was worth the increases.

It appears that in today's "everybody gets a trophy" world, top pay is guaranteed...........

[raceannouncer]

Anybody who believes that government needs to be involved with ANYTHING, has never had to deal directly with the government; nothing but RED TAPE, DOCUMENTATION: (REPEAT)--RED TAPE, DOCUMENTATION: (REPEAT)

In our history, the local, state and the US government has failed miserably numerous times when getting involved in things, especially with those they know little-to-nothing about!

I'm sure if people really stopped to think about it, they could probably research or even remember some!!!

[bakes]

So raising the minimum wage will cause inflation...

The CEO of McDonalds tripled his own salary recently, to $14 million.  The price of a Big Mac did not go up a dime. 

Huh.

Always extra money for the CEOs but none for the workers.  Limit CEO pay to say 50 times what the average worker salary is in the company.

[2300]

http://memepoliceman.com/mcdonaldsceo/

 

[DarwinsBeagle]

I guess average is "good enough" for bakes.  Even if his claim about McDonald's CEO is true, which is obviously isn't, I still would not be upset about it.  I don't begrudge successfully people for being successful, especially when it's earned.  Rather, I see it as a standard that I could potentially achieve.  Every day that I wake up in this country, I have an opportunity to be better than I was yesterday.  What I do with that opportunity is on me.

I guess I'm the weird one.