Posted: 2/12/2008 6:30:45 PM EDT
| Tell me the ups and downs of a government set minimum wage |
Classic song! 
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| The concept of minimum wage is BS. It makes people feel good. The market will set a minimum wage. Sure, maybe it will be lower, but then no one will work for that company. Increasing the minimum wage does jack shit because businesses won't eat the cost, they'll pass it onto consumers, thereby nullifying any gains. |
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Minimum wage is the starting point for a basic job. Exactly how much is someone with no job skills worth? How many people hire on expecting to make a living at minimum wage? What do you think the guy washing dishes, flipping burgers, or busing tables is really worth? Raise the cost of business, raise the cost of service. The employee taxes go up as the wages go up. A 50 cents an hour raise costs more than 50 cents. |
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Actually I like Rush's argument on minimum wage: If it's a good thing to raise it, let's not screw around: let's make it $20 an hour.  Oh, no you CAN'T do that! Really, why not? Well...well...and then just let them tell you why you shouldn't fucking have one in the first place. |
These threads NEVER end well but...as long as I'm here.... MY problem with the minimum wage has NOTHING to do with wether or not it benefits the over-all economy or forces small business' to cut back jobs or....whatever... The thing (To me at least) that's wrong about it to me is that it (A state enforced minimum wage) basically says.."You're a F**Kin' retard and if it wasn't for us ENLIGHTENED ("We're SOOO much smarter than you peasant and can run your life better than YOU can") types setting limits on what sort of financial associations/partnerships/relationships you care to make why....you might go out there and work for a penny an hour and WE (The chosen ones) find that unacceptable" Simply put, two people are involved in a relationship that both are satisfied with and a third person (NOT involved with the relationship!) steps in and says that THEY'RE NOT satisfied with it AND that THEY'RE going to have end it. |
| Look at it this way, the cost of labor at any cost is built into the cost of the goods and services you purchase. If the cost of labor goes up via artificial means, the price goes up accordingly. This seems cool if you are on the bottom of the wage scale, because you make a little more money. Problem is, everything you want to buy goes up as well, call it government mandated inflation. The people who work above minimum wage see no results... except higher prices! |
| Was just looking for a good explanation behind my first post and found that Wikipedia actually has a really good explanation Here. |
Orly? One of my employers is a small business. Fewer than 15 people in the shop. Full time employees are eligible to participate in a 401k(with a 4% match dollar for dollar, and also professionally managed at no cost to the employee should they want the service), have insurance available, 40 hours paid vacation per year(which does not "expire" every year), and a wealth of other niceties. The pay isn't that great, but the above makes up for it. Right now business is a little slow, but if it comes down to no work, he will have people wash the walls rather than lay anyone off. |
Good for them. But one example of a small business doesn't mean shit. Just think of what he could offer his more senior employees if he wasn't paying the janitor $8.00 an hour. |
+1 Coming from a person with a bachelors in economics.
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Unless he is more philanthropist than entrepreneur, this cannot endure. If these employees are all minimum wage, currently $5,85 per hour, he's currently got a payroll of $3,510 per week (assuming 15 employees, 40-hour weeks, not including bennies). If suddenly the minimum wage were raised to $7.00, his weekly payroll becomes $4,200 (an increase of 20%). He's either going to raise selling prices to cover that (if the market allows for it) or let go of 3 people, or some compromise of those two options, to cover that increase. Again, unless he's essentially a philanthropist who likes giving money to these employees just for kicks. |
| The only thing it does for me is make the money I make go less and less each time they give minimum wage job people raises. I get paid the same but things I buy cost me more especially groceries. We spend at least 1k a month in groceries but that also does include diapers and such for our twins and feeding their mouths which eat more than I do... |
| Add the fact that a minimum wage increase generally doesn't net the employee who is actually making minimum wage a whole lot of extra money. Bumping it a dollar almost always put those employees into a higher tax bracket, instantly skimming most of the 'extra money.' |
Because he is crazy. Just because someone shares a certain viewpoint that is correct does not absolve them from all of the other insane shit they believe. |
"Crazy" is subjective. Enjoy your rising cost of goods and business, though.
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Labor is a commodity in an economy - like any other good or service. A minimum wage is a price floor. I'm sure there are planty of graphs in her book that can take it from there. Short term - you have a decrease in quantity demanded and thus an increase in unemplyment. Longer term, the inelesticity of demand for labor in some industries leads to a rise in prices. Longer term still: You are back to square one. This all happens quickly. This does not take into account the pressures to find new labor markets, such as illegals, or overseas outsourcing. |
Indeed. And Ron Paul fits the bill perfectly. The man doesn't have absolutely terrible ideas. But he lacks planning. Bad way to sell yourself.As to the rising costs? He wasn't going to do anything about it anyway. Anymore than anyone else will ever do away with things like the IRS, minimum wage, or any of the institutions of government market control. |