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Apparently, in the Three Wolves universe, prices for goods and taxes have remained completely static for the last five years, which was the last time the federal minimum wage was raised. (I think that universe is named Fantasyland.)
He used the example of Seattle. I lived in Seattle. I saw it happen. Now, you can live in La La Land all that you want and pretend it doesn't happen, but that's not reality.
He used the example of Seattle. I lived in Seattle. I saw it happen. Now, you can live in La La Land all that you want and pretend it doesn't happen, but that's not reality.
Because as we all know there is no reasons independent of wages that cause inflation particularly in a localized area
He used the example of Seattle. I lived in Seattle. I saw it happen. Now, you can live in La La Land all that you want and pretend it doesn't happen, but that's not reality.
Seattle is a highly desirable area, I think that has a much greater effect than minimum wage increases.
Because as we all know there is no reasons independent of wages that cause inflation particularly in a localized area
inflation happens because of many reasons TOO INCLUDE raising wages
most small businesses (whom employe most of americans) work on a very small profit ratio, especially is the service sector (think automotive repair shop)
It really just reflects the higher cost of wages in general which reflect the higher cost of living .The problem will come in exporting those cost in product out of state. Likely the wages there are few at minimum wage now.
inflation happens because of many reasons TOO INCLUDE raising wages
most small businesses (whom employe most of americans) work on a very small profit ratio, especially is the service sector (think automotive repair shop)
As I said if you look at wages in isolation your argument makes sense. Also if you think about it from a folksy common wisdom persepective most of your argument make sense, but the world doesn't work that way.
The fact is inflation will not happen because of a minimum wage increase. When the minimum wage goes up, folks ability to claim government benefits like food stamps and the eitc will go down because of higher incomes. This means that while business will spend more to support their employees government will likely spend less. Thus the total spending in the economy will likely be a wash. This is basically a trend that has been going on for at least 4 years now.
Secondly the businesses that gain the most from minimum wage being low are big businesses. This is because their fixed costs of hiring and training new employees are relatively low to the size of their business. On the other hand small businesses often pay better because their fixed costs of hiring and training tend to be a large portion of their costs. Thus they like to retain employees and paying more then minimum wage is the way to do it as such any modest increase in the minimum wage over time won't really effect them except to put more money into the hands of their consumers.
As I said if you look at wages in isolation your argument makes sense. Also if you think about it from a folksy common wisdom persepective most of your argument make sense, but the world doesn't work that way.
The fact is inflation will not happen because of a minimum wage increase. When the minimum wage goes up, folks ability to claim government benefits like food stamps and the eitc will go down because of higher incomes. This means that while business will spend more to support their employees government will likely spend less. Thus the total spending in the economy will likely be a wash. This is basically a trend that has been going on for at least 4 years now.
Secondly the businesses that gain the most from minimum wage being low are big businesses. This is because their fixed costs of hiring and training new employees are relatively low to the size of their business. On the other hand small businesses often pay better because their fixed costs of hiring and training tend to be a large portion of their costs. Thus they like to retain employees and paying more then minimum wage is the way to do it.
your not seeing the big picture
thousands of small businesses are facing situations like this:
Quote:
here is an example of what will happen with this 'raising'
minimum wage is for UNSKILLED currently at 7.20
I pay my UNSKILLED laborers (that clean the shop) over $9 an hour, the min wage is $7.2
an example:
I run a maintenance shop
I have a shop foreman...$24/hr
I have 3 mechanics.......$22/hr
I have a parts manager...$22/hr
I have 2 mechanic helpers...$14
I have 2 parts workers/drivers...$12
I have 2 labors (to clear the shop)....$9 (2 over min)
minimum wage is $7.2
the 'government' raises the minimum wage to 15
now I HAVE to increase the laborers wage to AT LEAST 15.. and he will WANT $17 (2 over min)....but If I give the "unskilled" laborer $17 then the driver (must maintain a clean license) will want more (hey boss, I was making $3 more than the unskilled guy) ...as so on, and so on...
thus RAISING THE COSTS of my SERVICE that I provide to the society.....
I would to raise salaries on mech helpers, drivers, and laborers...not to mention the actual SKILLED workers....meanwhile the business will end up failing, because it not is too costly to stay in business
so either costs will go up....or people will get laid-off......because as a small shop owner I cant afford to give any more than I am giving
Many people insist on starting families based on their age. Often times people are going to start families in their 20s even though they are not working high paying jobs yet.
That's fine, but please don't expect the taxpayer to foot the bill.
thousands of small businesses are facing situations like this:
this is just one example of what is happening
The problem with your example is that you are assuming the government will more then double the minimum wage overnight and that is the way it will work. That is what we call a straw man. Even if the minimum wage goes to 10.10 or about 2/3 of what your example is it will likely be over a period of years potentially with small increases. If small businesses are even affected it wont be for years down the line.
Once more as I pointed out reliable unskilled labor actually tends to cost more then $7.25 which is why small businesses often pay a few dollars higher then the minimum wage
That's fine, but please don't expect the taxpayer to foot the bill.
Well it is a good thing that decision isn't up to you, I assume you are also against footing the bill for medical use for the elderly as well?
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