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We all know that a basic economic fact is that raising prices reduces demand and lowering prices increases demand. So when you raise the minimum wage, you will lower the demand for that labor. But there are other negative consequences. Here are just two (I'm sure there are hundreds more across the USA).
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The point of Walmart (and other discount stores) in the marketplace is to get consumer goods into the hands of a primarily lower-income customer base. This obviously means that prices need to be kept down. Walmart recently announced, in response to years and years of progressive and union groups pressuring them, they'd spend $1 billion to raise the wages and provide training for new employees.
How can they make such a commitment and keep prices down? Instead, some stores are now cutting the hours of their employees in order to stabilize expenses. This means there are fewer workers at these Walmarts at any given time, meaning slower restocking and poorer customer service, which may drive shoppers to the company's competitors. Bloomberg details the frustrations:
SEATTLE, Wash. — A Seattle-area nonprofit observed some workers recently asking for reduced hours, as they feared that their higher wages now put them at risk of losing housing subsidies.
Nora Gibson is the executive director of Full Life Care, a nonprofit that serves elderly people in various homes and nursing facilities. She is also on the board of the Seattle Housing Authority.
Gibson told KIRO 7 she saw a sudden reaction from workers when Seattle’s phased minimum-wage ordinance took effect in April, bringing minimum wage to $11 an hour. She said anecdotally, some people feared they would lose their subsidized units but still not be able to afford market-rate rents.
For example, she said last week, five employees at one of her organization’s 24-hour care facilities for Alzheimer’s patients asked to reduce their hours in order to remain eligible for subsidies. They now earn at least $13 an hour, after they increased wages at all levels in April, Gibson said.
Today's republicans stance on minimum wage ignores all economic factors from inflation to consumer spending. And republicans just plainly say "we should not raise minimum wage."
In 1938 the minimum wage was .25 cents per hour, and if everyone followed republican logic the minimum wage today would still be .25 cents per hour. Untitled Document
Fact is the minimum wage has to be raised occasionally because of inflation, corporate greed, and the need for consumer spending.
And corporate greed causes large companies to pay workers as little wages as possible to increase their profits. If there were no minimum wage laws large companies would not pay workers enough money to survive.
And the thing that keeps an economy strong is consumer spending. If today's minimum wage was still .25 cents per hour our economy would collapse because there would be no consumer spending.
The problem with minimum wage is liberals raise the minimum wage too fast and republicans don't want to raise the minimum wage at all. But the root cause of the problem lies with republicans because they don't step in and demand sensible minimum wage increases (instead republicans plainly say no to any and all minimum wage increases.)
Or, as we have seen in Seattle, several others cities are looking at increasing their minimum wage as well. That said, no one is asking you to move to Seattle. There are lots of low wage places you can move to.
You still don't understand the debate, do you? It's not about where someone chooses to live.
Today's republicans stance on minimum wage ignores (all) economic factors from inflation to consumer spending. And republicans just plainly say "we should not raise minimum wage."
In 1938 the minimum wage was .25 cents per hour, and if everyone followed republican logic the minimum wage today would be .25 cents per hour. Untitled Document
The problem with minimum wage is liberals raise the minimum wage too fast and republicans don't want to raise the minimum wage at all. But the root cause of the problem lies with republicans because they don't step in and demand sensible minimum wage increases (instead republicans plainly say no to any and all minimum wage increases.)
Seattle is taking seven years to raise the minimum wage, plenty of time for businesses to adapt. Many other cities are implementing before Seattle's takes full effect. Doesn't matter though, the people that disagree probably shouldn't live in Seattle.
Quote:
Originally Posted by Roadking2003
You still don't understand the debate, do you? It's not about where someone chooses to live.
I understand the debate perfectly. You used Seattle as an example and I live here. You don't have to live with the Seattle minimum wage, it's a choice. If you want to remove all minimum wages, take that up with Congress but that will never happen. So better for you to just live in the city with the lowest minimum wage possible.
Or, as we have seen in Seattle, several others cities are looking at increasing their minimum wage as well. That said, no one is asking you to move to Seattle. There are lots of low wage places you can move to.
I made that move.
I lived in Seattle (one block off Delridge Way), worked for Boeing, long ago.
When I got laid off, I returned to Montana and got a job. Yes, I made less money than I had been making at Boeing. However, I lived better than I had in Seattle; rented a much nicer house, and soon bought a house. Had a nice car and a truck, even though we had two kids instead of none.
Low wage places also usually have a lower cost of living. It balances out.
EXAMPLE: In 1969, while working for Boeing, I bought a new Dodge Coronet R/T from West Seattle Dodge. Cost: $4100
In 1982, I bought a new AMC Eagle Station Wagon in Missoula, MT. Cost: $8400.
I never worked for minimum wage, so I don't know what the minimum was.
In 1941, a new Chevy coupe was $641
the first house I bought cost $10,000
the second house cost $40,000
We paid $158,000 for the place we have now.
We have been told we could sell it for over $200K
Have the wage increases over the years really done us any good? Are we REALLY any better off, monetarily, than the craftsman who made $1 per day for a ten hour day way back in the 1930s? Can we buy any more with our $200 than he could with his $1?
Remember when you could go to McDonalds and get a cheeseburger ($.24), milkshake ($.24) and fries ($.19) and have change left from a dollar bill?
No, monetarily I do not believe we are a bit better off than that $1 per day worker!
If you don't agree with Seattle raising the minimum wage - don't come to Seattle. Pretty simple.
Perhaps in your area you should lower the minimum wage. Make it a dollar an hour. By that logic, everyone will be flush with jobs and money, right?
but you see, the purpose of increasing the minimum wage was to get people OFF government support. the theory being that you pay them more, and they can afford to buy the things they need to live without having to accept welfare. instead these people are having their hours CUT so they can keep getting their government support.
Quote:
Originally Posted by mkpunk
Prices maybe kept down by reducing overhead costs. Maybe finding cheaper suppliers and goods used in producing the product or service.
right, so instead of getting stuff from vietnam and china, you want us to go to africa?
I lived in Seattle, worked for Boeing, long ago.
When I got laid off, I returned to Montana and got a job. Yes, I made less money than I had been making at Boeing. However, I lived better than I had in Seattle; rented a much nicer house, and soon bought a house. Had a nice car and a truck, even though we had two kids instead of none.
Low wage places also usually have a lower cost of living. It balances out.
Seattle is taking seven years to raise the minimum wage, plenty of time for businesses to adapt. Many other cities are implementing before Seattle's takes full effect. Doesn't matter though, the people that disagree probably shouldn't live in Seattle.
Conservatives make some good points on minimum wage increases. And liberal minimum wage increases do not factor in things like very small businesses not being able to afford minimum wage increases. ex.ex.
As far as I am concerned the correct action in any political problem is using a combination of both liberal and conservative ideas. And liberal minimum wage laws could factor in things like very small businesses and omit them from large minimum wage increases. But instead liberals hit very small businesses with the same minimum wage increases as large corporations (when the large corporations can afford the increases and very small businesses can not.)
Many/most liberals do not see, notice, or consider conservative observations on minimum wage increases. But still the liberals are the best option because left alone republicans would have minimum wage laws set to 1940 levels.
Yes. Employed people commit far fewer crimes than unemployed people. And working at a menial job is most often a stairstep to a better job while unemployment is often a stairstep to crime.
Menial jobs, taken out of desperation, makes it very difficult to find other employment. Well paying manufacturing jobs, that used to keep people in the middle class had them yanked out from under them, as well. Luckily, Obama helped the auto industry.
Menial jobs, taken out of desperation, makes it very difficult to find other employment. Well paying manufacturing jobs, that used to keep people in the middle class had them yanked out from under them, as well. Luckily, Obama helped the auto industry.
Oh really... In light of automation and moving manufacturing plants out of the country, just how many jobs exactly did Obama create IN THE US, for American auto manufacturing?
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