Posted on 11/09/2006 11:40:48 AM PST by Dane
With the sweep by large margins of the minimum wage intitives in 3 states in 2006, it is obvious that raising the minimun wage is an obvious popular electoral arrow the democrats have in their quiver.
Now I'll probably see replies of "stupid Americans", but that doesn't cut it. I would like to see replies that are concise on why the minimum wage is bad economic policy.
BTW, if you have a pro opinion about the minimum wage, they are also welcome, but such replies such as "sticking it to the man" aren't going to cut it either.
Raising the minimum wage is like the adage of killing the goose that lays the golden eggs. Businesses provide jobs and wealth for people and putting onerous regulations on businesses is killing the goose that lays the golden eggs.
Well typos don't help out. :)
Do like I did.
Tell them to stick it in their ear and retire.
Too numerous to write here.
Minimum wage is a way of telling poor people 'If you ain't worth X$ you aren't allowed to have a job.'
Minimum wage hikes are a way of increasing the vacuum pressure for illegals to come here. The higher percentage of jobs that aren't worth minimum wage, the more illegals are needed to perform them.
Minimum wage is a payoff to big unions that have step increases linked to minimum wage at the base hence it increases the export of union jobs overseas.
Minimum wage disproportionately affects the poor and low income worker by making it harder for them to reach the bottom rung of the ladder.
The problem is, if you already HAVE a minimum wage (which we do), arguing against raising it a couple of bucks is a fool's errand.
No employer should be forced by government to set an artificial wage for a job for the "privilege" of employing someone. Wages should be a contract between an employer and employee. Government shouldn't tell someone how much to pay me, or how much to charge me for a product.
Raising the minimum wage is really a tax. It takes money away from entrepreneurs who start businesses that create many of the new jobs in America.
The other side of it: Once an entitlement is bestowed, or an idea like raising the minimum wage is accomplished, you cannot take either back. The people will demand it as a right - which, of course, is preposterous.
Ask your opponent why we don't just make the minimum wage $50/hour, and he'll make the argument for you.
Arguments don't make much difference when it comes to increasing the min wage. It's a matter of shear power. And the Dems have it.
All we can do is let them do it, and then if the economy tanks, blame them.
I think the threat of raising the minimum wage is exagerated. The real problem is how many are wanting to do like Colorado, where future increases are indexed to inflation. That is what has driven entitlements through the roof and eventually the job market will be hurt badly because of this.
I know quite a few people who own businesses and every single one of them pay more than what the raised minimum wage will be so it will have absolutly no impact on them.
One of them owns a liquor store and two own convenience store.
IMO the minimum wage hike will probably benefit about two or three percent of workers and impact less than one percent of employers.
1) By increasing minimum wage, you offer increased incentives to employers to hire illegals to do the work for the same low rate.
2) Due to having to put out more money, businesses will have to make job cuts (see #3), put out an inferior product or raise prices.
3) Since businesses will have to same amount of money to use on labor, the most obvious way to rectify this is job cuts. Those people who need the jobs will be hurt the most.
Either way, it's a good thing those Dems are in power. Now when people get laid off due to the soon to be stagnant economy, they'll have a lifetime of welfare to rely on.
Ohio did the same thing, that's the most insiduoous part.
Businesses aren't like the goose that lays the golden egg; their income comes from delivering a product or service to a willing customer, and is finite. Everything on which a business spends money, whether it be labor, capital equipment, or office supplies, needs to directly or indirectly deliver value (revenue) to the company greater than or equal to its cost, or that thing will not be purchased by the business.
If the value of a given task to a company's bottom line is "x", a company will be willing to pay a worker up to "x-y" to do that task, where "y" is the expected profit for the business. If an arbitrary minimum wage (a price floor on labor) is set higher than "x", no business would pay an employee some amount greater than "x" when that employee can only earn "x" for the business. Thus, the business will do without that task, and the potential employee will do without a job.
As a real-world example, let's say that a fast-food restaurant can add an extra worker to a shift and by so doing can serve two more customers per hour, contributing a total of $6 per hour to the company's bottom line. They might be willing to pay that worker $5/hour for that task, and make an additional profit of $1/hour. If the minimum wage is arbitrarily raised to $7/hour, and the additional employee only produces $6/hour in value, the employee will be fired. The restaurant will lose out on $1/hour in extra profits, and the employee will lose out on $5/hour in income.
Just as an arbitrary price floor for goods will reduce the quantity demanded (if milk had to cost at least $10/gallon, you'd buy less milk), an arbitrary price floor for labor will reduce the quantity of labor demanded. That's why every minimum wage increase proposal comes out with models (generally suppressed by the mainstream media) of how many low-income workers will lose their jobs or not be able to get employment if the increase goes into effect. A good way to phrase things to people who haven't put much thought into such things and so support minimum wage increases, living wages, etc. is to ask them why they want the lowest-income people to lose their jobs. As they stare at you with mouth agape, you can then provide them with the above explanation of just how and why those jobs will be lost, and hopefully end up with a convert.
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