Posted on 01/13/2007 6:02:39 PM PST by george76
In the first hundred hours of the just-started session of Congress, the new leadership promises to raise the minimum wage. The Democrats won't be opposed by many Republicans.
Raising the minimum wage is definitely popular. Voters in six states approved higher minimums last Election Day. State politicians in both parties are practically drooling with eagerness to "help" lower-income workers.
We all want the poor to make more money. So if government can raise wages by decree, why are the popular proposals so stingy?
Let's really do something for the poor. Let's raise the minimum wage to $20 an hour. Even better, $50!
Or maybe we should take a deep breath and think like economists for a change.
The law of supply and demand, which operates whether we like it or not, says that when the price of something goes up, people buy less of it. That's why environmentalists like higher gasoline taxes, and anti-smoking activists back higher cigarette taxes.
The law of supply and demand works in the labor market, too. If government mandates a higher minimum wage, some workers will get a raise. Some. But something else will happen. Employers will hire fewer low-skilled workers. Others will let some current workers go. Some will choose not to expand their businesses. A few will close altogether.
Only 2.5 percent of all hourly workers make $5.15 an hour ...says the Department of Labor. "Minimum wage workers tend to be young."
Few of them stay at the minimum wage for long. As they acquire skills, their productivity rises and they command higher wages.
Legal wage minimums kill all kinds of entry-level jobs, particularly those that would teach young people basic work habits and the benefits of effort. That's why there are no kids cleaning your windows at gas stations or ...
(Excerpt) Read more at humanevents.com ...
Another issue that's not often taken into consideration is there's a difference between what a worker takes home in pay and his total compensation. Employers must pay for legally required worker benefits that include Social Security, Medicare, unemployment insurance, workers' compensation, health and disability insurance benefits, and whatever paid leave benefits they offer, such as vacations, holidays and sick leave.
It's tempting to think of higher minimum wages as an anti-poverty weapon, but such an idea doesn't even pass the smell test. After all, if higher minimum wages could cure poverty, we could easily end worldwide poverty simply by telling poor nations to legislate higher minimum wages.
http://www.jewishworldreview.com/cols/williams042606.asp
I hope they raise it to $15/hour. It would be a boon to the robotics industry as well as end immigration for low skilled jobs overnight.
Nobody's talking about the Journeyman's pay. His pay is set at a certain multiple of the entry level pay in many cases.Depends on his contract. Be sure his Union will be around soon to set things right. You can bet ALL the Senators know this too.
I think some companies counter that by using more 'part' time workers, which do not require some of those benefits you mentioned. Correct?
All the Senators know this.
The union bosses do not talk about it openly.
More dues for the union bosses.
Moving jobs to part time and to off shore are two ways to try to cut expenses.
Also sub-contracting work to outside vendors is another way.
The big deal is the politics.
The politicans can say that they are helping the poor.
The old media goes along with the theatre by writing articles on how this helps the poor.
I propose that the Federal Minimum Wage must be increased to the same wage that Speaker Pelosi earns because most minimum wage employees earn the money they work for. I'm not so sure about Pelosi.
Senator Rockefeller from West Virginia apparently once was complaining that his neighborhood was getting too crowded with doctors, etc.
So he proposed higher local property taxes to keep out the newly rich that were invading the old rich areas.
Speaker Pelosi's husband ''just happens'' to own a big chunk of land which used to belong to the Federal Government (us taxpayers) : Hunters Point Naval Shipyards.
Her protégé, Gavin Newsom, current Mayor of San Francisco, is trying to strike up a deal where the San Francisco 49ers will get that land and stay in the city, rather than moving to Santa Clara and building a new stadium down there.
But there seems to be some problem with the Naval shipyard being a Superfund cleanup site.
Stand by for developments as the blinkless wonder simultaneously cleans up corruption in Congress, and finds a way around this ''Inconvenient Truth.''
bttt
Even better, $500 million an hour!!!
I'm so tired of reading this infantile argument.
Perhaps we should allow sweat shops to pay 25 cents an hour if that's what they can get away with.
Which explains why unions are disappearing.
There are only two reasons that I can think of to legislate an increase in the minimum wage.
1. It will give there union buddies more bargaining power come negotiation time.
2. It will increase the money they have to buy more votes via the increase in wage taxes.
They're all crooks !!!!
Why not...if they can find people to work at those wages.
Congressman Billybob
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.