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What happens when minimum wages goes up significantly? Will business owners simply accept less profit?
No. Businesses have many options before they accept less profit margins. They can slash hours, shrink the workforce, reduce or eliminate benefits, and raise prices.
For those who are making a middle class salary, your wage is not going up. Instead, businesses will reduce your benefits and raise prices of stuff you want in order to pay for the higher minimum wage. The burden of subsidizing the poor is now on the middle class. The rich and the upper middle class won't be affected much. But those making $40k and $50k will get less. Duh, that's a big portion of Americans.
What this does is averaging the poor and the middle, creating a big lower middle class of shared miseries. If you are making a middle class income, what good can come out of this?
The rich always win in America, always. The middle class are dying.
Last edited by Costaexpress; 06-12-2014 at 02:09 PM..
Let's make the minimum wage 10 cents and then the middle class will be successful! Oh wait, we did that by offshoring to China. How's that working out?
You failed to prove causation in any of your points. People making minimum wage aren't in the middle class.
Try again.
Exactly. But a high minimum wage makes the middle class subsidize the minimum wage class. It doesn't bring the poor class up to the middle but it lowers the middle to the working.
Exactly. But a high minimum wage makes the middle class subsidize the minimum wage class. It doesn't bring the poor class up to the middle but it lowers the middle to the working.
Aren't the middle and upper class subsidizing all those one welfare, social security or various other govt programs?
Someone told me California needs to make the minimum wage anywhere between $20-$25 because the living expenses are so high.
She said if those living off of minimum wage could make a living wage, they wouldn't need public or government assistance because then they could afford food, clothes and shelter.
If anything it would enrich the lower class and reduce taxes.
Her words, not mine. I think she got the idea because apparently some European countries have like $20 minimum wage.
Someone told me California needs to make the minimum wage anywhere between $20-$25 because the living expenses are so high.
She said if those living off of minimum wage could make a living wage, they wouldn't need public or government assistance because then they could afford food, clothes and shelter.
If anything it would enrich the lower class and reduce taxes.
Her words, not mine. I think she got the idea because apparently some European countries have like $20 minimum wage.
If they have more money, they will be able to afford food, etc. But the question is where that money comes from? Likely, it comes from other employees rather than business owners. Businesses will find things to cut and raise prices. The middle and the poor are squeezed into one class, the lower middle class. Tax payers are subsidizing the poor, just through different means.
And if a high minimum wage eliminates government assistance, the poor may not necessarily be getting more money in the end.
If they have more money, they will be able to afford food, etc. But the question is where that money comes from? Likely, it comes from other employees rather than business owners. Businesses will find things to cut and raise prices. The middle and the poor are squeezed into one class, the lower middle class. Tax payers are subsidizing the poor, just through different means.
And if a high minimum wage eliminates government assistance, the poor may not necessarily be getting more money in the end.
Wouldn't the dollars be the same or similar at some point?
Raise min wage > money comes from other employees pocket or higher prices do the same > offset by lower govt assistance
Leave min wage > keep govt assistance spending level > tax payers out of pocket
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