I think that by increasing minimum wage, more people on lower economic tiers will have money to spend, increasing the cash-flow and the economy as a whole. It has been proven to work in Australia, where minimum wage is $15.96 an hour. Twice the US minimum wage! Not only that, but the unemployment rate is only 5.4%!
Rather than just raising wages with the company raising prices, or with the cost of living rising, tie the lowest paid worker with the highest paid worker. So if the lowest paid worker is only making $8.50/hr, then the highest paid worker (CEO, president, etc.) could only be paid, for example, 20x that amount, or $170/hr. This will keep the cost of living down as nearly everyone will be in the sweet spot (not too expensive, not too cheap).
If the government raises the minimum wage, it would show that they could actually get stuff done and that they are not a bunch of incompetent f***wads who are just blowing all of our money on stupid sh*t. We dont even have to raise it by that much, it could be like by 5 cents which in real life money is like nothing.
As stated, we don't need a minimum wage it does nothing to really benefit society. If we get rid of the minimum wage, the youth who are the ones mostly affected by the minimum wage would be able to get work much more easily and increase their value as a worker and thus their wages would naturally increase as well.
Minimum wage jobs are jobs that require no education or skill. They are entry-level positions and usually filled by young people. The absurdity of the law is that if proponents seriously believed their arguments were true, why not make $50.00 an hour or $100.00 an hour. To take the opposing argument, which uses Australia as an example, the unemployment rate for workers ages 15-19 is 16.5% and last December, 63% of all jobs lost were held by young, unskilled Australians. Also, "In 2011 the minimum wage was $AU15.50 – the OECD thinks this would’ve bought you goods and services equivalent to what an American could buy with $US9.50."
The minimum wage does NOT create jobs, but instead it decreases job creating. If I have 100 dollars and the minimum wage is 10 dollars, I can hire 10 people. If the minimum wage is increased to 20 dollars an hour, I can now only hire half of the workers I could before. People's pay should be based solely on skill and productivity. They may want 10 dollars now, but when does it stop? Next, they'll want 15 and then 20. The government mandating how much a private business has to pay it's employees is extremely unconstitutional and raising that rate won't help the economy one bit. Here is another reason it isn't a good choice. As an employer, if I have to pay my employees 10 dollars an hour, I am going to be very very selective and stringent in who I hire. Whereas before when the minimum wage was 7 dollars an hour, I would be less selective on who I would hire because allocating 7 dollars to one person isn't as important or as much of a risk as allocating 10 dollars an hours. These examples are basic logic and great reasons as to why the minimum wage should not be increased.
The minimum wage is a feel good number, something that will get politicians elected. However, the entire quandary is a round -a-bout. Businesses have quite a slim margin of profits, and raising the minimum wage even slightly may well transcend that gain. In response, businesses, the kind who are employed by the poor and serve the poor, are forced to raise prices, thus canceling out any economic flow that may be gained through the increase. The same goes for lowering the minimum wage. Do so, and competition will drive prices down, not making it any harder for low tier employees to survive.
The minimum wage is somewhat a paradox, but its set number is entirely pointless.
Minimum wage jobs were for people that were just starting in the workforce. These jobs were minimum wage because it required absolutely no experience or skill which meant that they were great for a first job usually as a teen. There purpose was to develop a work ethic. Now even for minimum wage jobs you need experience. How do people enter the workforce?
When I was 13 I got a job at Dominos at minimum wage which at the time was 4.25 within 9 months I was making 5.75 minimum wage was still 4.25. I was making 1/3 over minimum wage and about 3 months later the minimum wage increased to 5.50 but my pay did not. For all intensive purposes I got a pay reduction that day. Where I had worked my way up and was making 1/3 over the minimum I was now making 1/12 over. People have forgotten what it means to be successful or what true value is. Its not how much money you have its how you got what you have.
People want to talk about equality but what they are really saying is its not fair I want what they have so I should have it and that is not how to get it. Minimum wage is one way that the government insures self entitlements and it does nothing but hurt everyone. Every time minimum wage goes up the value of the dollar goes down and the people who have worked hard and proven themselves to be worth more than minimum wage and therefor got a pay increase by getting a raise suffer because they end up being pulled backward and before you know it they are back where they started down near minimum wage. This sends a message to People that no matter if you barely do your job, do everything expected of you or go above and beyond what is expected of you daily you will never amount to anything so just slide by because even if you start to climb that ladder your coworkers will throw a tantrum and you will be pulled back down because that is the kind of equality that we want.
Another thing to think about with minimum wage workers is that the reason you are paid so little is because you as a single person have no real effect on that company or even that specific location therefor you as an individual are not worth more to the company. If we did not have minimum wage then we would have competition in the workplace and people would make more because they would be worth more and the economy would rise and prices would fall and more businesses would come home thus creating more jobs. The truth is that businesses would come up with a base wage for their unskilled jobs based on what that role does for the company and you would have more employees and chances to get raises by proving your worth.
So we have to pay more ! If the government decides to increase minimum wage ! No ! You can bring up the whole Australia's minimum wage that Is 15.30 US dollars , but you also have the cost of living , A average meal for two can cost up to 70 dollars ( source - http://www.Numbeo.Com/cost-of-living/country_result.Jsp?Country=Australia&displayCurrency=USD) or you could look at San Francisco which has the highest minimum wage in the USA . But an average home 1m source ( http://www.Trulia.Com/real_estate/San_Francisco-California/market-trends)
People who believe in having minimum wage laws at all--let alone raising it--clearly have no understanding of basic economics. No employer is forced to retain or hire employees in light of the law (God forbid I give you lovely Communists any ideas). The employer knows he can only sell his company's goods or services at a particular price, and the law does nothing to increase the worker's productivity to produce more of the product. So to pay for it, he either has to A) lay off the least productive workers, B) not hire new workers he might have been considering for expansion, C) pass the costs to his customers via higher prices (which he can't do unless his competitors do the same, unless he wants to lose business), D) take a cut in profits (which discourages other people from investing in the business), or E) outsource to other countries with lower minimum wages. ALL of these hurt the worker. People who have no basic understanding of economics are so difficult to encounter because they have no idea what money is and where it comes from. They think that when it just rolls off a government printing press somehow, somewhere in the universe more goods and services are created for it to chase. If those who do not understand economics would just shut their traps and eat a little of that humble pie they keep trying to serve to the aspiring entrepreneurs and capitalists among us, they would get along just fine. Everyone's an armchair economist, but only as long as it reaches the conclusions they WANT, not the truths that EXIST. How would proponents of minimum wages like it if the government set a minimum price on bread at $100/loaf? It's the same principle! Let the market decide ALL prices, and government can GET LOST!
McDonald's has 1.8 million employees(1). Lets say 95% of those are minimum wage workers. Based off the average hours for US workers, at 1,790 a year(2), an increase of only $0.25 would cost them $765,000,000 averaged.
1,800,000 * 95% = 1,710,000
1,710,000 * 1790 = 3,060,900,000
3,060,900,000 * $0.25 = $765,225,000
This is around 14% of McDonald's net profit.(1) Raising it to $9 as Obama wanted would cost McDonald's $5,356,575,000. This around 98% of McDonald's profit in wages alone. Decreasing their Profit Margin from 19.71% to only 0.39%.... A Profit Margin of 0.39%....(3)
Increasing minimum wage to $15 a hour would leave McDonald's with a profit of -$15 billion a year. Either Unemployment will rise, or prices will rise. This says a lot because McDonald's has a massive profit margin compared to the small 7%-9% found in most companies.
As for Australia, talking about their overall unemployment is meaninglessly. Minimum only effects a few groups of people. Australia has a massive unemployment rate among young, unskilled workers.
Australia also sees much higher prices than the US, and a much lower purchasing power in dollars than the US.(4) Rent is nearly double in Australia... A pear of pants cost $100 in Australia! This comes with many issues, because despite the increase in costs of 30%-50%, the Average income after taxes is only 15% higher.
The reason the jobs are over seas is because there is no minimum wage you hire based on how badly you need someone not based on some minimum amount. You know businesses use to have more jobs available before minimum wage. Jobs that didn't require much work but benefited for customer service and helping relieve the stresses of the job. Door greeters for instance, at many stores across America were let go due to he fact they aren't worth 7.20 an hour to stand there and say hello to people. While if I was disabled/ retired/fixed income or a kid working for 4 dollars an hour would be a nice supplement job. Not available anymore because of minimum wage. You wanna know why people complain about Illegal immigrants so much? Because they get the 2.24 an hour jobs no one is allowed to take because of the minimum wage issue.