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Once you take out those under 24 and add in salaried employees, you are looking at under 2% of the country that is making minimum wage. I think people are overstating the impact of this on the economy.
$8.25 is a reasonable amount and I have always thought tying it to inflation was a good idea. Small annual adjustments are less of a shock to employers.
I think too many voted "yes" without thinking about how it's going to affect them in the long run.
Today we adjusted prices to compensate until the trickle down from the wholesalers & distributers hit us in Jan.
And next year, when the COL goes up and so does minimum wage, again? Prices will increase again.
Think about it: 20 employees who work an average of 2080 hours per year.
For employers who were paying $8/hr: that's an additional $520+ per year per employee (employee paycheck increases? So does business owner's workman's comp, etc., per employee).
So a little over $10,400 of a payroll increase.
For those who were paying $7.25/hr with 20 employees? Increase of over $40K per year in payroll.
Now take in to consideration that the manufacturers, wholesalers and distributers will also be passing their increases in payroll down the line and to the retailer.
Who is going to eat it in the end? The consumer. And ESPECIALLY the consumer who didn't increase his/her paycheck by minimum wage increasing.
Last edited by Informed Info; 11-06-2013 at 07:13 PM..
Once you take out those under 24 and add in salaried employees, you are looking at under 2% of the country that is making minimum wage. I think people are overstating the impact of this on the economy.
$8.25 is a reasonable amount and I have always thought tying it to inflation was a good idea. Small annual adjustments are less of a shock to employers.
I think you have to consider the knock on effect. Take the guy that was currently making $8.00 an hour or $9.00 an hour. If he was worth XX more than minimum wage before is he worth that much more now? Do you have to also bump him up as well? And so on. So I think the reality is this impacts more people than just those currently making the minimum wage.
Once you take out those under 24 and add in salaried employees, you are looking at under 2% of the country that is making minimum wage. I think people are overstating the impact of this on the economy.
$8.25 is a reasonable amount and I have always thought tying it to inflation was a good idea. Small annual adjustments are less of a shock to employers.
I'm not sure why you would cancel out those under the age of 24. Paying them a dollar more costs the same exact amount as paying an older person a dollar more. But the impact is still there because in economics, what starts out as a small percentage, grows. Prices rise in one sector, say fast food, or clothing, or whatever, and then you have to pay someone else more to be able to afford that, then you have to pay someone else more to afford whatever THAT person is selling. And so on, and so on. As you said, $8.25 is reasonable considering how stagnant low end wages are, and maybe we should consider raising it more often than we do currently, but I think they just created a positive feedback loop, that over time will lead to higher inflation than we have seen in a while. I hope I am wrong. What's done is done, so all we can do is watch and see what happens. I'm also curious to see what happens with this $15.00 minimum wage in Seattle.
I think you have to consider the knock on effect. Take the guy that was currently making $8.00 an hour or $9.00 an hour. If he was worth XX more than minimum wage before is he worth that much more now? Do you have to also bump him up as well? And so on. So I think the reality is this impacts more people than just those currently making the minimum wage.
I think you have to consider the knock on effect. Take the guy that was currently making $8.00 an hour or $9.00 an hour. If he was worth XX more than minimum wage before is he worth that much more now? Do you have to also bump him up as well? And so on. So I think the reality is this impacts more people than just those currently making the minimum wage.
I do agree. That's part of the reason why figuring out a number, setting it permanently, and tying it to inflation is a good thing.
I agree with you, but I don't think WalMart, McDonalds, and other minimum wage jobs were ever meant to support a middle class lifestyle. Real middle class jobs have been moved to China and other countries. If you try to turn minimum wage jobs into middle class jobs you will see significant inflation. If you want to buy cheap stuff at WalMart, you have to keep the cost of getting those products to the consumers, down. If we really want to build the middle class back up, we need to figure out how to keep those types of jobs here in the US. Globalization is the culprit in the growing wealth gap. When all is said and done, the only jobs we will have left are either highly skilled ones, or ones that take no skills at all. We don't build anything anymore. We have become a service economy. Doctors, Lawyers, and financial services on one end, and fast food workers, retail workers, cab drivers, etc on the other. The only middle class jobs that will be left are the ones that can't be outsourced or automated. Government jobs and tradesmen. And tradesmen are under constant threat by illegal immigrants.
Sadly, the true "working class" has been almost obliterated in this country. It used to be that a man could work his whole lifetime in a factory, auto plant or shipyard and support a wife and children. He could be proud of his work.
Now those jobs have been replaced by "Walmart" type jobs that don't pay enough to support a family, and certainly don't give much worker satisfaction.
It's only at the airport and surrounding locales(hotels). To a large extent, they are passing on increased costs to out-of-towners.
Hmm. That's actually pretty smart.
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