Thanks to this Bill I Deserve a Raise =)
“Tackling a top priority, House Democrats pushed a $2.10 an hour increase in the federal minimum wage toward passage Wednesday, calling it only a partial restoration of purchasing power for America's lowest-paid workers.
As their second bill since taking control of Congress, the Democratic-written legislation would raise the federal wage floor from $5.15 to $7.25 an hour in three steps over 26 months. The federal wage hasn't budged for 10 years.” (http://www.foxnews.com/story/0,2933,242742,00.html)
Democrats took control of Congress and said they would raise the national Minimum Wage. Welp, they are doing just that! I guess they can be said to keep their word … at least in this case? (Hey, I’ve got to say SOMETHING nice about the Dems. Right?) It boggles my mind why people continue to live in this fantasy world that by raising the minimum wage, America’s economy will suddenly come to life? Let’s think this through: the minimum wage is raised $2.10/hr. While this may help the nation’s 16-year-olds, how does this help the economy? This sudden boost in the minimum wage means that everyone earning more than minimum wage is now earning a lesser value.
What is the motivation in upping the minimum wage in the first place? Liberals argue that they want to “help the working class of America!” Well la-dee-freakin-da! Sure sounds nice doesn’t it? And it would be nice if they were actually helping the working class of America. But are teenagers really America’s working class? And another thing: aren’t minimum wage jobs supposed to be jobs when one first starts out. Minimum wage jobs (bagging groceries, etc) are meant to be a transition job, aren’t they?
Democrats act like they are saving America when in reality they are hurting our economy. Once this bill goes into effect, I would actually expect a raise at both of my jobs. Why? Because I don’t work at minimum wage jobs, and therefore my wage needs to increase to counterbalance the increase in minimum wage work. Inflation inflation inflation!
I’ve got a question for anyone more familiar with economics: how long will it take for our economy to properly adjust to this drastic raise in minimum wage?
The conservative in me wants to smack the Democrats upside the head for this bad idea. Why not let businesses determine their employees’ pay? Demand and competition do work, ya know?
Anywho, let’s pray our economy doesn’t get too messed up.
posted by rustypth @ 7:00 AM
8 comments
8 Comments:
Casey you say "Well la-dee-freakin-da!" about the minimum wage increase to which I agree with a Well la-dee-freakin-do! Good question about how long it will take our economy to adjust to the drastic increase in the minimum wage. Being that I almost went into both finance and economics I am actually interested by what you mean by that (ie.- are you stating that since minimum wage went up, this will affect other jobs, like those currently paying 8.00/hour? If so, I highly doubt...but I would be very interested in hearing what my boss (a financial planner who has been in the business for 24 years) has to say. Great post!!! Here's a link that is VERY interesting - I'm formulating my own opinion and have been for awhile, but the story is about income inequality. I had some problems linking it, so here is the URL, enjoy! http://finance.yahoo.com/columnist/article/economist/19750
Brian - yes, by "la-dee-freakin-da!" I did mean that I am opposed to raising the minimum wage.
It raises inflation, and lowers the value of any wage higher than the minimum wage.
Demand and competition should determine wage. By the way, when did we stop caring about an employer's right to determine how much he wants to pay his employees? Oh, but then again, I'm talking about Capitalism =)
"And another thing: aren’t minimum wage jobs supposed to be jobs when one first starts out. Minimum wage jobs (bagging groceries, etc) are meant to be a transition job, aren’t they?"
Hey Casey, just to play devils advocate, what about those individuals who, because of whatever circumstances in their lives (a handicap, lack of education, age, etc.), are unable to work anywhere other than a business that pays the minimum wage? What would you argue about those "middle to lower-class citizens"?
If you're a teenager, minimum wage jobs are probably your first job. If you have a lack of education, you can still find better paying jobs - In N Out Burger, for example. If you have a mental disability, then I believe it is society's job to take care of you - the family in particular - not the government's responsibility.
Good thoughts tho
Fully agree with Casey. Lack of education does NOT mean minimum wage paying jobs. That all depends on motivation, work ethic, etc. Even a high school dropout who works somewhere full-time (beginning at minimum wage) will be making much more soon after.
Rusty... great to hear someone commenting intelligently on this issue. The Repubs sat back and let the dems push this through knowing that the common person will only see the "man" keepin' them down.
Few recognize that a $2+ increase in the min wage will require suppliers, manufacturers, retail and the like to raise their prices immediately in response.
It also seems strange that some felt the economy was hurting, yet the economy is booming... (I can speak from personal experience, since I've seen a substantial increase in income in the past year.)
Seems the old adage is true, repeat something enough times and it becomes "true".
Great post Rusty!
Thanks for helping hold the hard line of being a conservative in America.
FYI, $2.10 is a 40% pay increase for minimum wage jobs. 40%!!!! That's an unheard of raise even in the professional world. If I went to my boss and asked for a 40% raise they would laugh at me.
I agree on all points, this is going to drastically effect the daily lives of every American, making it harder for us to live. But isn't that what liberalism is? Communism repackaged?
40% is definately a significant increase. I would be interested to know how common it is for businesses to actually pay minimum wage, as that would probably provide a better estimate of how much the economy will be affected.
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