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Why do we need any minimum wage at all? All it does is harm business and workers who just want to get their foot in the door, their wages should be between the worker and the employer, the government shouldn't be involved.
Do you realize that they that having the the ability to flip burgers or answer a phone does not make you incredibly valuable? These jobs aren't meant for people trying to support families, they are for un-skilled workers who are just joining the work force, usually teenagers or college students, because of the current economic crisis, people will take any job.
If Joe's factory can produce cars for $100 and Jack's factory can produce cars for $200 which do you think will survive?
So the government doesn't need to pay (as much) benefits to people, and because workers in a full time job should have a wage they can realistically live on.
The minimum wage is $7.50, people are paid over $7.50 an hour. What makes you think that would change if it went down? Minimum wage just hurts small businesses and if high enough, ships jobs over seas.
But large businesses pay the workers the minimum wage exactly- like Walmart. if that goes down, the workers will be paid less. The government will pay more.
Small businesses... outsourcing?
The small businesses in my area are doing fine, and normally pay over the minimum wage.
But large businesses pay the workers the minimum wage exactly- like Walmart. if that goes down, the workers will be paid less. The government will pay more.
Walmart pays above the minimum wage. Now yes, some companies pay exactly at the minimum wage, when you have an un-skilled worker with no experience they are supposed to start at the bottom and work their way up.
Small businesses... outsourcing?
No, the small business don't out source. Small business don't have the funds to pay their workers a lot, but most large business do. So first it hurts small business, if it hurts the larger companies enough they begin shipping jobs over to other countries.
Amazon pays one cent more that the minimum, just to say that their people do not live on minimum wage. If they could they would pay $3 or even less. Large companies are like slave masters. Yes they have system of bonuses but that is pretty much impossible to reach, it's more about luck rather than skills.
Problem is that the top is not available to people from the bottom. After few years as a pretty much slave you may'd promoted to the "supervisor" which has salary that look greater that the wage of a slave but in reality you will have less that $7/h and you will still be packing or whatever you've done before.
They aren't slaves, they are workers. This may be an incredibly hard concept for you to grasp, but 95% (probably more) of the population can stack boxes, what makes you think it is such a valuable skill? May I ask, how old are you?
We have to compete with China, that is just that. Now if you looked at China, they went from a starving nation of un-educated people to the industrial capital of the world in a few decades. Despite their wages being originally low, most Chinese households have cars and computers and live nice lives. China has the fastest growing middle class in the world.
The forced minimum wage also makes it hard for younger workers to get jobs.
China lives just and only from being a huge cheap factory. If the living standard increase too much (wages goes up) foreign countries will loose interest and leave and in result living standard will fall back again. It's just bubble, they don't have actual inner market. To build something like that takes many generations.
The forced minimum wage also makes it hard for younger workers to get jobs.
What is the point of a job that does not even covers rent and food?
China lives just and only from being a huge cheap factory. If the living standard increase too much (wages goes up) foreign countries will loose interest and leave and in result living standard will fall back again. It's just bubble, they don't have actual inner market. To build something like that takes many generations.
You would be hard pressed to fine more bullshit on a cattle ranch.
China is the industrial giant of the world, their people also buy and sell their products amongst each other. To say they have no inner market is totally ridiculous.
What is the point of a job that does not even covers rent and food?
Most young workers are -drum roll please- teenagers and college students. They don't need it for food and rent, they need to so they can get some job experience and spending money.
Wow, see I have a part time job once a week, and I get paid £7.50/hour for that..!
Yes godamnit raise it! It's no going to affect your God-fearing apple-pie eating commie-hating 'Murican way of life and cause Nazi's riding dinosaurs to rise from hell, just because you're paying those who need it, a little extra..!
I think we should add a few extra 0's on the end of 11, but this is a good start. Anyone who disagrees with the notion that raising the minimum wage causes everyone to get payed more and has no side effects is just SAAAAAAAaaaaaaaaavage!
Just think about in terms of supply and demand. A minimum wage acts as a price floor basically, above the equilibrium point (the intersection of labor supply and labor demand). This means that there is a labor surplus, which only increases as the minimum wage is raised.
The mininum wage is a failed public policy sponsored by unions. Not only is the government to blame, but unions are just as big as a probelm.
When unions lobby for minimum wages in Congress and State legislatures, they are no advocating for the poor, they are doing the exact opposite; they are protecting the unions from any competition and create less free labor market. The minimum wage consequently hurts the poor because it is protecting those who already have jobs in the union and limits the number of available jobs.
Without the minimum wage, the perceived perception of the race to the bottom of using exfoliation for low wages is an extremely imaginary delusion.
The supply and demand of labor irrefutably regulates wages in the free market without government intervention. Labor
In the supply and demand curve, the supply and demand determines wages based on education and productivity. For example, in China, if the demand for 10 million workers in manufacing is required, then the supply will be met with the demand. The end result is lower pay, which is contributed to the law of diminishing return.
However, why does Alex Rodriquez get paid so much? Well, because the union protects from competition of other leagues and supply and demand of labor.
The union protects him by guaranteeing him and all players a minimum wage. On the supply and demand, how many people are going to hit 30 HRS, 100 RBI's 20 SB, .300 AVG and team leadership every season? Well the supply is likely 1 and demand is very high, like 32 teams. When companies are freely allowed to compete for the most skilled in their profession, wages will increase.
Small businesses will collapse and bigger corporations will move out while fast food restaurants raise prices on their food along with grocery stores, gas stations, etc.
No not really, International companies pays more in Europe than in US even in countries with higher taxes. For example Amazon pays about 7$/ in US but $14/h in Germany
If this is the case, then I am pretty sure unemployment among the youth is pretty high. That example is impossible if both produce at the same rate, if European countries do so, then they produce much less.
No, youth unemployment is bad because teens who want to get jobs can't because they have no work experience or skills and they can't even get their foot in the door because of a high minimum wage. How many people can a company get to tell people about their special or stack boxes? That's right, almost everyone can do that, its not worth $20 per hour and it puts companies in the red.
You must be a college student tohave misunderstood me that badly. There are no skills needed for basic jobs, youth has no skills or job experience, thus, they are not worth $20/hour to do a basic job that anyone can do... Its very simple.
the problem with raising the minimum wage to $11 an hour is two fold. First, some of the small companies that pay 7-8 dollars an hour will cut back on their work force to make up the difference in payroll. Then you will be asking employees to work much harder or faster to compensate for the lack of adequate help. Also, companies may also stop providing health care coverage to their employees. I am not just talking about the ones making minimum wage, but employees who are higher up the food chain to make up lost profit. It is inevitable.
Second, the price of products will go higher, causing inflation to rise. Those dollar menus at fast food places will now be two dollars instead of one. Gas prices will increase without a doubt, as gas station owners who pay 8 dollars an hour will all jack the price of gas up to recoup their extra payroll.
Once inflation starts to rise, the government will have to raise interest rates to bring down inflation, stalling economic growth.
Who will this hurt? Try the unemployed and people on social security, as their dollar goes far less. People on social security will see a rise in their monthly checks due to the annual cost of living adjustments. With the government paying out far more in benefits, they will have to raise taxes to make up the difference and cut spending programs like education and defense to prevent going into default like so many countries in Europe have done. Higher taxes and higher inflation will hurt the people who are above the 11.00 an hour right now with no benefits to that class of people.
Not a good idea to raise the minimum wage that high, economics 101.
The minimum wage is usually too low to matter to most. When it's raised it benefits high school kids who don't need. It tends to hurt the people it claims to help.
Raising the minimum wage would only hurt the people working at that wage. By raising the minimum wage, you are in effect increasing a price ceiling, which results in a surplus. That surplus is unemployment, resulting from decreased demand in unskilled labor due to higher prices.
The thing that nobody wants to acknowledge is that some forms of work simply aren't worth $11 an hour. Some forms of work simply aren't worth $7.50 an hour!
When the minimum wage increases, one of three things happens:
1) Prices for all goods and services that depend on minimum wage labor at ANY point on the chain go up.
2) The labor is outsourced to a region with lower or nonexistent minimum wage laws.
3) In spheres were labor cannot be outsourced, individuals are employed under the table, illegally.
Raising the minimum wage doesn't really help anyone; it results in more unemployment AND higher prices, negating the benefit that those earning minimum wage receive as well as putting a heavier burden on those who have invested the time, effort, and money to land a real job.
A person should use those type of lower wage jobs as a temporary stepping stone. Live with a roommate or 2 for a couple years, go to community college, learn a trade, and you (and your roomates, presumably) are 'good to go' from that point onward--having earned a higher wage through (generally speaking) being a greater asset to society.