...is to the raise the minumum wage? You people whine about the poor on welfare yet you are too dense to realize that the only way to break the cycle of poverty is to force employers to pay more. IF the minumum wage is raised, far less peeople are eligible for programs like food stamps. Problem solved.
This really isn't hard to figure out. Corporate profits are already at an all time high. The wage gap in this country is staggering. Where is the incentive for these "job creators" to choose to raise wages on their own accord? Why invest in a strong labor force when it is just easier for them to keep the ridiculous amount of money they already earn? The US has the widest income inequality gap in the world. Pathetically, you people call what I am saying "envy" and it's so moronic. This is an economic issue that will eventually affect the entire economy. If the poverty in this country continues to grow and the middle class continues to shrink, the economy will continue to destabilize and more crises will occur. This economy, small businesses especially, depend on consumer spending. Consumer spending can't flourish based on the current climate.
18 million people make less than 10.10 per hour. How many more make less than $15 which is the wage one must be able to live off of based on current inflation?
Exactly how do you expect businesses to absorb the higher wages, higher payroll taxes and higher workers compensation insurance? Those are just the direct pay related costs, there will be more.
Some costs will be passed on to consumers, but it won't be nearly as much as you think. As an example, a restaurant will operate on a budget that allows for a 20% labor cost. Food costs run around 30%, utilities, rent, payroll taxes, and insurance round out another 30%, leaving a 20% profit margin. If current labor is based on $8.00 per hour for all employees and you want to raise their rate to $16.00 (doubled to make calculations easier), then labor would increase to 40%, leaving zero profit. In order to get the same dollar amount in profit, prices would need to be raised 20%. So in order to double everyone's wages, prices only need to increase 20%.
So, yes, some costs will be passed on to the consumer, but everyone has to do it, and as all these people now have more money to spend, business actually increases, so prices actually do not need to be raised 20%, but a bit less than that. Now, about those payroll taxes. Guess what? One of the main reasons that SS and Medicare is hurting so bad is due to the fact that average and median wages have been decreasing over the years, so those programs are actually collecting less than they should be. Now personally, I think $15 per hour for the minimum wage should be a target for 2020, while $10.00 per hour should be put in place now. I also do not have a big problem with staggering the minimum wage as Australia does. Teenagers make much less in Australia working minimum wage jobs than older adults. There is a bit more incentive to make employers promote people from within as they get older, so they aren't just paying the maximum minimum wage for every entry level position.