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Higher minimum wages help?


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Old 01-10-2007, 09:51 PM
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Here is an interesting article talking about how higher minimum wages actually help the economy. What's your take?

Crossing the State Line Is Worth It for $7.93 - Nearly a decade ago, when voters in Washington approved a measure that would give the state’s lowest-paid workers a raise nearly every year, many business leaders predicted that small towns on this side of the state line would suffer.

But instead of shriveling up, small-business owners in Washington say they have prospered far beyond their expectations. In fact, as a significant increase in the national minimum wage heads toward law, businesses here at the dividing line between two economies — a real-life laboratory for the debate — have found that raising prices to compensate for higher wages does not necessarily lead to losses in jobs and profits.
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Old 01-10-2007, 10:38 PM
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personally i think it will hurt. excpecally US. LCOs as we can only charge so much. is it me, or has the cost to cut a yard not really increased in the last 20 years? what $5? ANd everything else will go up. oil of course, any excuse. milk, soda, beef, clothes.
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Old 01-11-2007, 12:47 AM
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I do not agree with increase in minimium wage. *Within the next two years, its a staged effect, Michigan will be up around $7.85.

This is my theory on the minimum wage:

First of all, employers are going to suffer. *It will cost more to have an employee especially with workers comp insurance. *

Second, employees in the long run will suffer. *Perfect situation: *A gentleman has been working for a company for 2 years. *He started out making $6.00 an hour, and now after two years is up to $8.00 an hour. *Well, a new worker is hired on and started making $7.85 right away. *Well, this worker that has been there for 2 years will go to his boss and say, "Hey, shouldn't I get a raise as well since I have been here longer." *Wouldn't you think that it is right that this guy should get a $2.00+ raise then. *

Third, employers are going to cut costs by cutting employees and being more productive with less employees and less higher paid employees. *Why would a employer hang onto a $10 an hour guy? *He won't. *He will let him go and hire on someone at $7.85 instead.

Fourth, most people think that this gives more money in peoples pocket. *Wrong! *The cost of living will increase such as food, gas, and heating because employers will have to raise prices to offset the now higher paid minimum wage employers.

And basically in a nutshell.....the employee is back to making the exact same amount that he made years ago because of the increase in cost of living.



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Old 01-11-2007, 12:29 PM
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i totally agree. now why cant the stupid politicans get that in their head. and we need to advertise that cnn or something.
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