If the minimum wage is going to be increased then everyone who is working should be allowed to get that increase and get a benefit from it. I think the economy as a whole would see a big difference with that change because things will become more affordable, as long as companies do not raise their prices of items.
An increase in the minimum wage would benefit the economy by allowing the workers in jobs depending on minimum wage to be confident their pay checks would cover more then the most basic of needs. A livable wage would allow for more discretionary spending and for more people to start saving for retirement. The discretionary spending would benefit the economy now and the retirement saving would save the government money in retirement benefits later.
Megan Murnane of Texas here. I believe that an increase in the minimum wage would provide for better worker productivity, fewer sick days, less turnover (hence lower hiring and training costs). This, while accomplishing a moral goal of providing at least a living wage. Also, I think that a higher minimum wage, a living wage, would be an incentive for people to leave public assistance and re-enter the workforce, becoming taxpaying "givers" to the national economy rather than "takers" from the economy.
Minimum wage is put in place to provide a safety net for workers. At the current rate, minimum wage is not high enough to provide workers the ability to live above the poverty level.
The increase in minimum wage has the potential to decrease economic inequality, and a decrease in economic inequality leads to economic growth.
The minimum wage would give low wage workers more buying power. More goods and services would circulate through the economy, creating jobs and raising the total standard of living.
Minimum wage has not been increased to keep up with inflation.
If you raise the minimum wage, then prices of goods will go up to. So the extra money that these minimum wage employees get will then have to spend there extra money that they got paying for higher prices. So that doesn'tt help them at all. And guess what happens to middle class citizens that aren't on minimum wage? They have to pay more money for the same products, and they don't get paid extra at all. If you want more money, get a better job!!!!!!!
People want a minimum wage increase, but really how would that help? If you increase the amount of money people are payed, then prices will increase and taxes will increase. We'll be right back where we started. If you want higher income, you should work for it. There are people at places like McDonalds who chose not to go to school, thus have a lower paying career. It is their own fault, and should not demand a minimum wage increase because it affects everybody around.
If we raised the minimum wage, then either employers would raise prices or lay off/fire workers. If they raised prices, then it would seem like everything would be fine. Prices are higher, but everyone has more money. The dollar has less power, but everyone has more dollars. However, the government taxes a higher percentage of your earnings the more you make, so everyone would actually end up with less.
Raising the minimum wage is a bad idea. If we raise the minimum wage, then companies will either lay off/fire workers, which is far worse than low pay, or have higher prices, or both. Let's say they choose to raise the prices. But that's okay right? Everyone has more money, everything costs more, it's the same, right? No. Because the government taxes a higher percentage of your earnings the more you make, you will end up with actually less real money than before.
1. Minimum wage jobs are not meant to make a living wage. They are meant for teenagers, and inexperienced workers.
2. When you raise every one of the 70 million minimum wage worker's pay to anything higher, the business as a hole makes less. An example is in Seattle, where they are trying to raise the minimum wage to $15. It is projected that 25-50% of workers could lose their jobs there, and close to 15% of businesses may have to move, or be shut down. That would effectively cripple the economy there.
3. Think about it for a second, when a business makes X amount of profit from day to day business and pays them .75 X in wages, how will they ever be able to afford to pay the same number of employees 1.5 X in wages? It just doesn't work.
Just because workers have more money to spend does not mean the economy is stronger. Instead prices could go up across the board. For example in 2010 107.3 Billion US$ were lost to theft, who do you think ended up paying for that? The company or the consumer? The consumer. So the same principle applies, except now companies have two other options. One option is to pass of this increase onto the consumer, so the raise would hurt everyone. Option two, lay off workers, this option may be the most common, with this option people who were making $7.25-$8.50 will be making $0.00 and may eventually have to draw welfare and receive food-stamps. The third option is to completely shut down, this increase may hurt small business as they will have to pay their employees more and thus their profit margin is slim, bigger companies can survive more easily in this situation but small business will go under,
It will lead to
Small businesses to go under
It Will Not
Help the economy
Help most people living off of minimum wage in long run (see 1st summary section)
PS when thinking about this topic do not always take the side of the employees but also from the eyes of the employer.
Some states have minimum wage numbers that are ridiculous, but raising minimum wage across the board would not fix anything. There are some companies like McDonalds that exploit minimum wage to sickening levels, but the effects of everybody having to pay their lowest tier workers more would have to be balanced out somewhere, and that would not make the way money flows through the economy function better.
Most people don't see the big picture when it comes to the minimum wage. If minimum wage were to increase, the inflation will go up, which is very costly to re-price everything on store shelves. Although the pay may go up, so will the price of everything else. Not to mention it would ruin countries that depend on US currency like Ecuador and Cambodia. In addition, many people who decided to deposit their money into a bank or their 401k would see their contributions pointless - the money they saved up will be worth a lot less. There are several examples of inflation that caused chaos. The Great Depression, inflation in Russia, and the 2008 recession. Long story short, if minimum wage increases, so will inflation.
I guess I'm going to be the guy who has to say it. Why are you working a minimum wage job? Minimum wage workers don't provided and real buying power. So that argument is out the door. Yeah you might have to get dirty or do something you don't like but there are opportunities to make more than minimum wage. The fact it says MINIMUM in it should make you want to do better. I personally don't like being MINIMUM. Do not reward mediocrity!