Minimum Wage Boost to $9.50 Hourly

**Young Spark** · 07-28-2007 02:53 AM

http://money.cnn.com/2007/07/27/news...ion=2007072715

So what does everyone think? Will this be good for employees and bad for employers or will it be good for employers and bad for employees?

I'd like to hear everyone ring in on this.

**RL4010** · 07-28-2007 09:51 AM

My belief is that the government can raise minimum wage all they want to, it really does not matter that much. Labor is usually one of the largest expenses for a business, large or small and when labor costs go up for a business on an hourly basis you have to react to that. You either cut back on people, shorten the hours of the people who are working, lower some other expense to make up the increase in labor or pass the increase along. It is sort of like the old line that businesses don't pay taxes, customers pay taxes. In some businesses it is easier to pass pay raises along to the customer than others but sooner or later it all gets passed along to the customer one way or another.

**radreality** · 07-28-2007 11:38 AM

I think its a lose lose situation over the long term, but people don't realize it.

It has nothing to do with wages, it has everything to do with government regulation. If a job doesn't pay enough, then a person can choose not to work there. If they don't have the skills to get a higher paying job, then thats their own fault and need to step up their game a little. When you increase the minimum wage, you are dumbing down the work force.

I can understand some regulation to make sure employers don't take advantage of their employees, but here in the States we have a choice of who we work for and the skills/knowledge we acquire to be more valuable and therefore worth a higher wage than others.

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**jackace** · 07-29-2007 12:34 AM

Originally Posted by radreality

I think its a lose lose situation over the long term, but people don't realize it.

It has nothing to do with wages, it has everything to do with government regulation. If a job doesn't pay enough, then a person can choose not to work there. If they don't have the skills to get a higher paying job, then thats their own fault and need to step up their game a little. When you increase the minimum wage, you are dumbing down the work force.

I can understand some regulation to make sure employers don't take advantage of their employees, but here in the States we have a choice of who we work for and the skills/knowledge we acquire to be more valuable and therefore worth a higher wage than others.

This is true to an extent, but what if everyone had the same education and skills? Someone would have to work those lower wage jobs. There is only so much room at the top. Eventually someone has to do the day to day work.

Have you ever heard of the Harvard MBA waiting tables? education and skills are only a small part of the employment process. Education and skills only qualify you to perform a certain job. Anyone who has looked for work for extended amounts of time will tell you landing the job is all about first who you know and second about how well you sell yourself.

I'm not saying I agree with the minimum wage thing because it really only effects high school and no skill workers. I do however agree with some form of security for workers so we do not end up with things like they were at the turn of the century. (1900)

I have done a lot of studying of this issue and the numbers show that real income (after adjusted for inflation) is down 12.5% from 30 years ago, cost of living is up atleast 10% over 30 years ago, and the cost of labor as a percentage of expenses for corporations is down to level not seen since the 1940s. What do all these statistics mean? Workers make less, pay more for basic expenses, and corporations pay less for labor then anytime since WWII. This leads to larger profits for corporations (especially large ones), and less money in the average American's pocket.

**rjdyork** · 07-30-2007 09:25 AM

It's totally a self defeating feat made congressmen who act based on their feelings rather than the economy. It's another stabbing in the side of businessmen and victory for the uneducated.

**pbradish** · 07-30-2007 09:35 AM

Originally Posted by rjdyork

It's totally a self defeating feat made congressmen who act based on their feelings rather than the economy. It's another stabbing in the side of businessmen and victory for the uneducated.

Because the poor and/or uneducated have so many victories over the modern businessmen.

I'm not a fan of raising the minimum wage for my own selfish reasons but have never been in an adult's shoes who makes minimum wage so I really have very little room to speak.

**NeoSoulBrotha** · 07-30-2007 03:25 PM

I understand the intent of the minimum wage, although I believe it's somewhat irrelevant in our modern economy.

As others mentioned... increase in labor cost = increase in cost to consumer = inflation.

**David Rocci** · 07-30-2007 04:43 PM

I have a few thoughts on the subject. Here in Illinois the state minimum wage just went up to $7.5/hr last month. This hurts small businesses - add payroll taxes, fica, medicare, etc which can be as high as 28% and the $1 increase in minimum wage now costs a small business person (or any employer) $1.28 per hour per employee.

With that being said, the small business person or any employer is more likely to pass on this additional expense to their customers... which are more than likely the same people they employ. So, in essence, even though people make more money, the cost of goods and services all over the state have gone up... so what have they really gained?

It's a losing proposition for almost everyone involved BUT the uneducated don't see it that way. They see higher wages and don't notice when their burger costs them an extra $1 or the prices at home depot in IL are higher than other states.... it's a ploy by politicians to capture votes.

-dr

**ProLogic** · 07-30-2007 06:27 PM

This would be more of an incentive to hire illegal immigrant labor.

**GoBIGJosh** · 07-31-2007 03:44 PM

Originally Posted by rjdyork

It's totally a self defeating feat made congressmen who act based on their feelings rather than the economy. It's another stabbing in the side of businessmen and victory for the uneducated.

Agreed. I think that all this does, is drive the price up on everything. If minimum wage is a certain level, than everything goes up and costs people right above them so much more for the basics.

If you feel bad, cut taxes, pull people back from war. Stop giving people more money for basic jobs.