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People who argue against raising the minimum wage always use a tired and illogical argument when they state: "Very few people make the minimum wage anyway, so what is the point?"
They are right, very few people make the actual minimum wage. But if you take the total number of people who make $10 an hour or less, you are talking about LOTS of PEOPLE. So if the government increases the minimum wage up to $10.00 an hour, you are impacting lots of workers.
The second issue is the compensation of semi skilled workers who now make $9.00 to $10.00 an hour, and have been rewarded for having some skills. If the minimum wage goes up to $10.00 an hour, how much of a salary increase will the semi skilled workers expect and demand above the new minimum wage?
The new $10 an hour minimum wage is now impacts a lot more people. Your thoughts?
People who argue against raising the minimum wage always use a tired and illogical argument when they state: "Very few people make the minimum wage anyway, so what is the point?"
They are right, very few people make the actual minimum wage. But if you take the total number of people who make $10 an hour or less, you are talking about LOTS of PEOPLE. So if the government increases the minimum wage up to $10.00 an hour, you are impacting lots of workers.
The second issue is the compensation of semi skilled workers who now make $9.00 to $10.00 an hour, and have been rewarded for having some skills. If the minimum wage goes up to $10.00 an hour, how much of a salary increase will the semi skilled workers expect and demand above the new minimum wage?
The new $10 an hour minimum wage is now impacts a lot more people. Your thoughts?
Tough call here. Tho I DO have a problem with auto mechanics here in Bullhead City only making 10 an hour or even less. That's a straight up insult especially if the techs have to buy their own tools. That's been told to me by several dudes who wrench for a living. Then the repair shops cry about NOT being able to find decent techs; yeah right, they get what they pay for. Sheesh!
People who argue against raising the minimum wage always use a tired and illogical argument when they state: "Very few people make the minimum wage anyway, so what is the point?"
They are right, very few people make the actual minimum wage. But if you take the total number of people who make $10 an hour or less, you are talking about LOTS of PEOPLE. So if the government increases the minimum wage up to $10.00 an hour, you are impacting lots of workers.
Different studies have different numbers, but they all come in somewhere between 25-30 million people. Yes, that's a lot of people. Roughly 15 million are at $10 or less, and the wage increase is predicted to also raise folks around the $10-13 an hour range, which is where the variability comes in.
Quote:
Originally Posted by Laid Off
The second issue is the compensation of semi skilled workers who now make $9.00 to $10.00 an hour, and have been rewarded for having some skills. If the minimum wage goes up to $10.00 an hour, how much of a salary increase will the semi skilled workers expect and demand above the new minimum wage?
The new $10 an hour minimum wage is now impacts a lot more people. Your thoughts?
Again, it's hard to pin to a single digit of precision, but somewhere between 10-15 million workers ABOVE $10 an hour would see an increase in pay as well.
The thoughts are:
This will increase unemployment at the lowest skill/experience levels, since the vast majority of economic studies show that this is the most reliable effect.
This will lead to low level inflation for goods/services common to low income areas, and will result in across the nation price increases as trickle effect from how much low skilled labor is used in primary/raw input industries and transport/distribution.
The purchasing power of the affected workers will change very little if at all.
Politicians will immediately begin hawking for welfare increases to "keep up with the minimum wage" and also to perpetuate a vicious cycle.
I get more valuable and competitive because when companies cut costs, they don't dump high skilled, responsible/accountable people like me, they get rid of people on their way up to that but not there yet. Essentially, dumbass MW laws help cull any possible future competition for folks like me.
So, the cost of all labor goes up followed by prices and you're right back where you started.
This is also a tired argument. When corperations are raking in record profits and CEOs and Stockholders are seeing the highest wages & dividends in history recently. Its difficult to use the "the cost of all labor goes up followed by prices and you're right back where you started argument" The solution is, raising prices shouldn't even be a question. I always find it bizarre that in this country we don't seem to have a problem cutting wages, benifits from our lower and mid level employees to maximise profits for Investors and CEOs so they can have outlandish paydays at the end. But the ideal of raising wages to lower or mid level employees and the fear tactic is used "The prices will rise!" Solution: Cut upper level and investors percentage to pay for labor increases. There are some CEOs who make more then all of there hr employees together. Outlandish.
This will increase unemployment at the lowest skill/experience levels, since the vast majority of economic studies show that this is the most reliable effect.
This will lead to low level inflation for goods/services common to low income areas, and will result in across the nation price increases as trickle effect from how much low skilled labor is used in primary/raw input industries and transport/distribution.
The purchasing power of the affected workers will change very little if at all.
Politicians will immediately begin hawking for welfare increases to "keep up with the minimum wage" and also to perpetuate a vicious cycle.
I get more valuable and competitive because when companies cut costs, they don't dump high skilled, responsible/accountable people like me, they get rid of people on their way up to that but not there yet. Essentially, dumbass MW laws help cull any possible future competition for folks like me.
Cost-push inflation is the weakest form of inflation. Minimum wage's effect on inflation is insignificant.
Even if my labor costs go up 50%, labor is probably only 1/3 or so of my overhead. That extreme scenario would only cause my overhead to increase by 15-20%. In many bigger stores, labor is a small percentage of their overhead.
This is also a tired argument. When corperations are raking in record profits and CEOs and Stockholders are seeing the highest wages & dividends in history recently. Its difficult to use the "the cost of all labor goes up followed by prices and you're right back where you started argument" The solution is, raising prices shouldn't even be a question. I always find it bizarre that in this country we don't seem to have a problem cutting wages, benifits from our lower and mid level employees to maximise profits for Investors and CEOs so they can have outlandish paydays at the end. But the ideal of raising wages to lower or mid level employees and the fear tactic is used "The prices will rise!" Solution: Cut upper level and investors percentage to pay for labor increases. There are some CEOs who make more then all of there hr employees together. Outlandish.
The same old ignorant argument that shows a total lack of understanding the business landscape. Most ceo's aren't making millions of dollars, over 50% of people work for small businesses with less than 500 employees. The average small business CEO makes $155,000. Yes Microsofts CEO makes billions of dollars, how many minimum wage employees do you think they have? How many of the 15,000 Amazon employees in Seattle are making minimum wage?
The average Fortune 500 CEO makes $10 million, the average number of employees in a Fortune 500 company is 52,000. If you took 100% of the CEO pay and gave it to the employees they would get a whopping $192 / year, a whole 9 cents / hour.
Increasing the minimum wage is going to have a vastly larger, negative, impact on small business than the few companies paying their CEO's millions.
If you don't like what a company is paying their CEO don't work there, don't buy from them, don't own stock in their company.
If you think the guy sweeping the floor should make the same as the CEO start your own business and pay them that.
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