Post your best arguments for AND against raising the minimum wage (small business, expenses)
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Why we should raise the minimum wage:
Costs of living have gone up, and the dollar is worth less these days. With these two things taken into account, raising the minimum wage improves the economy because those working minimum wage jobs have more money to spend, can move up in society, and thus be less of a burden to tax payers since they will be less likely to collect food stamps. The argument that low skilled jobs don't require a certain amount of pay is very emotional and doesn't take into account how little the dollar is worth. I know you had to work for $2 an hour cleaning toilets when you were in high school. The dollar also was worth more then. Those spouting the argument against raising the minimum wage claim that their personal job already pays less than proposed minimum wage hikes. They believe that it isn't fair that a kid flipping burgers should make more than $8 an hour because they make only $12. This is backwards thinking as they themselves could stand to earn more money.
Why we shouldn't raise the minimum wage:
The small business owners aren't CEO's making hundreds more than the workers at the lowest rung. Sometimes business owners in the start-up phase may be taking home less than minimum wage. Why should a worker who has less equity and stake in a business make more than the owner? Also, if you up the minimum wage, then workers with more skill will now start demanding more money, as their job that requires more skill may be now making the same wage as the low skilled worker. So now you create this effect of everyone demanding more money since some had more skill to begin with. Also, though raising the minimum wage instantly gives a raise to needy families, it also gives an unnecessary raise to those who don't support families and have no need for the extra income. Raising everyone's wage at the bottom undoubtedly means that some of those raises are undeserved. If workers want a raise, they move up in the company. Those that provide less ROI to the company shouldn't be given a raise. Should a teacher give all her students the same grade even though some didn't do any exemplary work? Why, if an employee gives less ROI should they be given a raise? In this case, raising the minimum wage would put more people out of work since companies would keep only the high ROI employees and can all the ones who are an expense and not an investment. These workers are then on unemployment and now being taken care of by Uncle Sam via you and I.
I make this thread so people can make themselves see both sides. I feel like if you can argue both sides, you can understand the issue better. Keep in mind I am posting very basic arguments just to start the thread off. I am by no means an economist. I just was a business owner. I think both sides make good points and I am torn on this one. So I challenge you to post your best arguments for and against this debate.
Why we should raise the minimum wage:
Costs of living have gone up, and the dollar is worth less these days. With these two things taken into account, raising the minimum wage improves the economy because those working minimum wage jobs have more money to spend, can move up in society, and thus be less of a burden to tax payers since they will be less likely to collect food stamps. The argument that low skilled jobs don't require a certain amount of pay is very emotional and doesn't take into account how little the dollar is worth. I know you had to work for $2 an hour cleaning toilets when you were in high school. The dollar also was worth more then. Those spouting the argument against raising the minimum wage claim that their personal job already pays less than proposed minimum wage hikes. They believe that it isn't fair that a kid flipping burgers should make more than $8 an hour because they make only $12. This is backwards thinking as they themselves could stand to earn more money.
Why we shouldn't raise the minimum wage:
The small business owners aren't CEO's making hundreds more than the workers at the lowest rung. Sometimes business owners in the start-up phase may be taking home less than minimum wage. Why should a worker who has less equity and stake in a business make more than the owner? Also, if you up the minimum wage, then workers with more skill will now start demanding more money, as their job that requires more skill may be now making the same wage as the low skilled worker. So now you create this effect of everyone demanding more money since some had more skill to begin with. Also, though raising the minimum wage instantly gives a raise to needy families, it also gives an unnecessary raise to those who don't support families and have no need for the extra income. Raising everyone's wage at the bottom undoubtedly means that some of those raises are undeserved. If workers want a raise, they move up in the company. Those that provide less ROI to the company shouldn't be given a raise. Should a teacher give all her students the same grade even though some didn't do any exemplary work? Why, if an employee gives less ROI should they be given a raise? In this case, raising the minimum wage would put more people out of work since companies would keep only the high ROI employees and can all the ones who are an expense and not an investment. These workers are then on unemployment and now being taken care of by Uncle Sam via you and I.
I make this thread so people can make themselves see both sides. I feel like if you can argue both sides, you can understand the issue better. Keep in mind I am posting very basic arguments just to start the thread off. I am by no means an economist. I just was a business owner. I think both sides make good points and I am torn on this one. So I challenge you to post your best arguments for and against this debate.
For raising the minimum wage:
-It has not kept up with inflation
-Employers exploit employees when they can get away with it, and the problem needs to be kept under control
-It's not a wage-earner's fault that zoning laws won't let them live cheaply. The public owes them compensation for inflicting financial hardship by not allowing them to arbitrarily downsize their residence to save on rent.
-A lot of people are caught in health care gaps and dental care gaps, although this could be remedied by further reforming health care. Employers often don't offer decent coverage and it is very difficult to afford health care. It's not a wage earner's fault that the system is so screwed up. They should be compensated for it.
-The cost of working can be quite high (commuting, daycare, more expensive food due to reduced time to cook/clean dishes, etc.), and a low minimum wage can make it make financial sense to not work. This is very expensive for the public as it results in high entitlement spending.
-States have cut higher education funding so much that it is very difficult to even meet living expenses in college without help, let alone tuition and fees. When graduates are in debt to their eyeballs, the entire economy suffers and income inequality is perpetuated.
-Employers often expect employees to have a car; how the **** are they supposed to afford it?
Against raising the minimum wage:
-Increasing the minimum wage incentivizes outsourcing, since it increases the price differential of domestic vs. foreign labor.
-Increasing the minimum wage by too much may lead to higher inflation.
-People shouldn't have kids they can't afford and then complain about not being able to support them
-High minimum wage may discourage entrepreneurship, in two ways: First, it means that starting a business has a larger opportunity cost of lost wages, and second, a small business will face higher labor costs.
-Many difficulties of minimum wage earners can be dealt with by other public policy reforms rather than increasing minimum wage
-Labor is only worth what an employer is willing to pay for it, not more than that.
-High cost of living is not the employer's fault and is irrelevant to the value of labor to an employer, therefore, it is not a justification for upping the minimum wage.
-Many minimum wage earners are in households with a decent income and don't really 'need' more money.
I think the minimum wage should be raised from time to time. I think we should establish some sort of schedule, tying minimum wage to inflation somehow, rather than needing a new law to pass each time we think it ought to be raised.
However, people should not expect minimum wage to provide a middle class lifestyle.
I think the minimum wage should be raised from time to time. I think we should establish some sort of schedule, tying minimum wage to inflation somehow, rather than needing a new law to pass each time we think it ought to be raised.
However, people should not expect minimum wage to provide a middle class lifestyle.
Outsourcing has been strong despite the low minimum wage... since I see the current fraction reserve system run by the western banking cabal as 'broken' and near insolvent or unsustainable, I vote to end debt based currency and go the treasury reserve note route.... about time we had an elite that cared more about the people than their own wealth and power.....
-Employers exploit employees when they can get away with it, and the problem needs to be kept under control
-It's not a wage-earner's fault that zoning laws won't let them live cheaply. The public owes them compensation for inflicting financial hardship by not allowing them to arbitrarily downsize their residence to save on rent.
-A lot of people are caught in health care gaps and dental care gaps, although this could be remedied by further reforming health care. Employers often don't offer decent coverage and it is very difficult to afford health care. It's not a wage earner's fault that the system is so screwed up. They should be compensated for it.
-The cost of working can be quite high (commuting, daycare, more expensive food due to reduced time to cook/clean dishes, etc.), and a low minimum wage can make it make financial sense to not work. This is very expensive for the public as it results in high entitlement spending.
-States have cut higher education funding so much that it is very difficult to even meet living expenses in college without help, let alone tuition and fees. When graduates are in debt to their eyeballs, the entire economy suffers and income inequality is perpetuated.
-Employers often expect employees to have a car; how the **** are they supposed to afford it?
Against raising the minimum wage:
-Increasing the minimum wage incentivizes outsourcing, since it increases the price differential of domestic vs. foreign labor.
-Increasing the minimum wage by too much may lead to higher inflation.
-People shouldn't have kids they can't afford and then complain about not being able to support them
-High minimum wage may discourage entrepreneurship, in two ways: First, it means that starting a business has a larger opportunity cost of lost wages, and second, a small business will face higher labor costs.
-Many difficulties of minimum wage earners can be dealt with by other public policy reforms rather than increasing minimum wage
-Labor is only worth what an employer is willing to pay for it, not more than that.
-High cost of living is not the employer's fault and is irrelevant to the value of labor to an employer, therefore, it is not a justification for upping the minimum wage.
-Many minimum wage earners are in households with a decent income and don't really 'need' more money.
Raising the min wage hurts the group its trying to help more than it helps. I read where MC Ds is going to more automation-rather than deal with ghetto type workers who only want want want.
PLUS doesnt raising the wage get offset by food stamp reductions..............lol So as HILLARIY said whats the difference..................lol.
Increasing the minimum wage will lead to inflation.
Increasing the minimum wage will increase unemployment.
Increasing the minimum wage will encourage companies to outsource.
AND...it doesn't need to be done. If a person wants to earn more, they can improve their skills and demand more. If they are not doing that, they have no one to blame but themselves. No one owes you a livable wage for doing a minimum wage job. Improve yourself and improve your employment options.
I think municipalities should be able to set their minimum wage to whatever works for them. A federal minimum wage doesn't make any sense, because the cost of living is so variable from state to state and even city to city.
I think municipalities should be able to set their minimum wage to whatever works for them. A federal minimum wage doesn't make any sense, because the cost of living is so variable from state to state and even city to city.
Sure. But, states and municipalities are free to make higher minimum wage laws. And, they do.
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