A Problem With Minimum Wage Laws

[EdwardBaiamonte]

The former governor of South Carolina, Carroll Campbell, said it:

"The trouble with the left is they don't understand dynamics."

Raising the minimum wage will begin such a dynamic. When they are forced by law to pay more wages to their employees, employers, being the businessmen that they are,whose main concern is maximizing profits, will not sit idly by and watch those profits dwindle away.They will pass the increased cost of doing business along to consumers by raising their prices. The process is called "inflation."

Yes, some people will be taking home more money, but they and everyone else will be paying more for the things they buy. What economists call "real disposable income" will hardly go up at all.


The concept is part of classical Economic Theory:

Biz/ed - Wage-price spiral | Biz/ed

Why would you expect a whore for big business to say anything else?

dear why call names like a child in school. Why not try to refute his argument or admit you have a liberal IQ??

 

[OnePercenter]

There is a wage/price spiral but you've overstated it. When 100% of people subsidize a wage increase for the bottom 10%, that 10% undoubtedly enjoys an increase in real disposable income. The other 90% goes down minimally.

I dont like social engineering much but I would much prefer to see minimum wage offering a significant incentive to work compared to sitting at home on the dole. As a conservative I'd like to see work rewarded over sloth.

except the higher the wage or price the fewer employees are affordable.

You have no proof of that. Prices for product have been steadily increasing WITHOUT a rise in wages. Why is that?

 

[OnePercenter]

There is a wage/price spiral but you've overstated it. When 100% of people subsidize a wage increase for the bottom 10%, that 10% undoubtedly enjoys an increase in real disposable income. The other 90% goes down minimally.

I dont like social engineering much but I would much prefer to see minimum wage offering a significant incentive to work compared to sitting at home on the dole. As a conservative I'd like to see work rewarded over sloth.

That's VERY progressive of you.

As a conservative, you need to believe in hiring the CHEAPEST person you can find and HOPE FOR THE BEST. Kinda like deferred pipeline maintenance.

 

[EdwardBaiamonte]

except the higher the wage or price the fewer employees are affordable.

********You have no proof of that.
a Rolls sells less than Chevy. Price drives down volume. Do you have the IQ to understand?


********* Prices for product have been steadily increasing WITHOUT a rise in wages. Why is that?

a billion new workers in China and India. Any more child like questions that you need to ask for the 100th time. You're such a bigot you'll force yourself to forget the answers and then ask the same questions again in a week.

 

[OnePercenter]

While I'm strongly against raising the minimum wage because it will make America less competitive and slow job growth, I concede the debate is destined to continue until it is raised. I hereby state without a doubt, the minimum wage will go up! Polls show a majority of Americans support this idea. It is my feeling that many people believe the myth this will put more money into the consumers pocket and create economic growth. They fail to recognize it will also spark inflation while reducing opportunity.

New twist and wrinkles are being added by the White House and supporters of this increase every week. Expanding the number of workers eligible for overtime pay is another attempt to push this along. Unfortunately much of the impact and pain will directly fall upon small business the real creator of jobs. The following article explores some of the negatives that come from arbitrarily raising wages.

http://brucewilds.blogspot.com/2014/03/the-minimum-wage-will-go-up-right-or.html

many people believe the myth this will put more money into the consumers pocket and create economic growth.

You seem to have forgotten 1956.

 

[EdwardBaiamonte]

As a conservative, you need to believe in hiring the CHEAPEST person you can find and HOPE FOR THE BEST. Kinda like deferred pipeline maintenance.

dear, business is competitive. if you hire poorly you go bankrupt so you want to pay the least possible but you also want to pay the most possible. Low IQ??

 

[EdwardBaiamonte]

While I'm strongly against raising the minimum wage because it will make America less competitive and slow job growth, I concede the debate is destined to continue until it is raised. I hereby state without a doubt, the minimum wage will go up! Polls show a majority of Americans support this idea. It is my feeling that many people believe the myth this will put more money into the consumers pocket and create economic growth. They fail to recognize it will also spark inflation while reducing opportunity.

New twist and wrinkles are being added by the White House and supporters of this increase every week. Expanding the number of workers eligible for overtime pay is another attempt to push this along. Unfortunately much of the impact and pain will directly fall upon small business the real creator of jobs. The following article explores some of the negatives that come from arbitrarily raising wages.

http://brucewilds.blogspot.com/2014/03/the-minimum-wage-will-go-up-right-or.html

many people believe the myth this will put more money into the consumers pocket and create economic growth.

You seem to have forgotten 1956.

what about it, idiot?

 

[OnePercenter]

They also fail to realize that it will reduce the hours of fast food workers LOL

Show us in history where that has occurred. Remember, a fountain drink carries a 1200% profit.

 

[Slyhunter]

If there had been an oversupply of labour at that level (minimum wage level ) illegal immigration would never have happened.

dear, who knows?? one huge advantage illegals have is that they work on a temporary basis for cash with no paperwork required. Also, they work harder and show great respect. The are not entitled spoiled victimized lazy American liberals.

Right.

 

[OnePercenter]

prefer to see minimum wage offering a significant incentive to work compared to sitting at home on the dole..

all agree but the real choice is not minimum wage or dole but rather do you put an able bodied adult on the dole or not and do you put them on minimum wage dole or not if they have a job.

don't forget minimum wage is just 1 of a 1000 interventions in the free market that libcommies want.

A regulation is an invention of a 'free market?' WOW!!!!!

 

[OnePercenter]

They also fail to realize that it will reduce the hours of fast food workers LOL

exactly, when a price or wage goes up we purchase less of it, in this case we purchase less labor.

Yes all those retarded ass fast food workers screaming for $15 an hour and don't realize they will only be on the schedule for 10 to 15 hours a week

Since the profit for a McDonalds franchisee of a number one meal that retails for $6.36 is $1.00, reducing hours is nothing more that strong-arming.

 

[OnePercenter]

A Problem With Minimum Wage Laws

Aside from the fact they exist?

Which you've enjoyed the results of your entire working life.

 

[OnePercenter]

Would you mind explaning me then how was it that 11 million illegals found their way into US jobs ?

There's something about this minimum wage rant I don't quite get.
A) There seems to be really few people willing to work for the actual minimum wage
B) There seems to be a rather large crowd of SA willing to work for the same wage ( or less ) .

Rising the minimum will probably increase the supply on both sides and decrease the demand.
If there had been an oversupply of labour at that level (minimum wage level ) illegal immigration would never have happened.

Greedy Republican employers.

 

[OnePercenter]

Don't forget about job cuts too. Each employee will be doing more so the added stress may not be worth the increase in salary. Another aspect to think about.

When in history has that happened?

 

[EdwardBaiamonte]

prefer to see minimum wage offering a significant incentive to work compared to sitting at home on the dole..

all agree but the real choice is not minimum wage or dole but rather do you put an able bodied adult on the dole or not and do you put them on minimum wage dole or not if they have a job.

don't forget minimum wage is just 1 of a 1000 interventions in the free market that libcommies want.

A regulation is an invention of a 'free market?' WOW!!!!!

dear it says intervention, not invention

 

[OnePercenter]

its more like 20-30 million. They found there way via the open border with Mexico, then they worked harder, with more respect, and for less money than their American liberal counterparts.

They do whatever the guy that bought them tells them to do for very little money and no benefits, which is why I believe that Republican employers hiring illegals should be fined and jailed.

 

[OnePercenter]

in my town they get $10/hour no taxes or deductions as opposed to $7.25 Fed. minimum wage

Which town is that?

 

[EdwardBaiamonte]

its more like 20-30 million. They found there way via the open border with Mexico, then they worked harder, with more respect, and for less money than their American liberal counterparts.

They do whatever the guy that bought them tells them to do for very little money and no benefits, which is why I believe that Republican employers hiring illegals should be fined and jailed.

actually they take the jobs because they are far better than those they had in Mexico so people who hire them are saintly. 1% is stupid and liberal.

 

[OnePercenter]

dear why call names like a child in school. Why not try to refute his argument or admit you have a liberal IQ??

Anyone that attacks American workers IS A WHORE!

 

[EdwardBaiamonte]

dear why call names like a child in school. Why not try to refute his argument or admit you have a liberal IQ??

Anyone that attacks American workers IS A WHORE!

you're a violent idiot liberal calling names