Senate defeats Democrats minimum wage increase

Reuters ^ | 21 June 1959

[Fractal Trader]

The U.S. Senate on Wednesday defeated a proposal pushed by Democrats to raise the federal minimum wage in increments from $5.15 to $7.25 an hour by January 1, 2009.

Sen. Edward Kennedy, a Massachusetts Democrat, unsuccessfully tried to attach the proposal raising the wage for the first time since 1997 to a defense authorization bill that is expected to be passed by the Senate soon.

[Niteranger68]

That's not true. It CAN be for them, but there are many 16 - 18 year olds on their own and they deserve a fair shake at making it without running to Uncle Sam

I thought you were for the government getting involved.

[Sam's Army]

"...there are many 16 - 18 year olds on their own and they deserve a fair shake at making it without running to Uncle Sam."

To those in that situation, my advice would be to steer away from fields that only pay minimum wage--there's plenty of those out there, even for "unskilled" labor.

[Tulane]

Rediculous. Most employers want to keep employees (turnover is expensive, even in the fast food business). Most employees who start at minimum wage earn more after a few months on the job...that is a fact.

Another fact: raise the minimum wage, raise unemployment.

[Sam's Army]

"I've had my own small business and I always paid $10.00 starting wage with no benefits."

If you had a heart you would have paid $25.00

[AmericaUnited]

It CAN be for them, but there are many 16 - 18 year olds on their own and they deserve a fair shake at making it without running to Uncle Sam.

So what, these kids want to move out at age 17, have their own apartments, cars, clothes, eating out $$, entertainment $$$, vacation trips to Europe,... and have UNCLE SAM mandate that employers pay them enough to make that happen??

Unless the're orphans, they had better stay home with mommy and daddy till they can afford to move out.

[Types_with_Fist]

Am I way off base here? Slightly. I work at the only available place in town. I wouldn't describe most of them -- or myself -- as "losers." Included are many with Associates degrees, Bachelors degrees. One lady I know is going after her Masters. I met one guy the other day who is a scientist. We all make $7.25 an hour. Many were raised here, have homes here and are just stuck here like me. Meanwhile... this town and the surrounding area continues to be inubdated with new arrivals from Mexico who take any and all other jobs, minumum wage and otherwise.

[jonno]

Bingo!

[kcvl]

Oct. 1st. Arkansas minimum wage will rise from $5.15 to $6.25. Thanks to a near one party state and our governor who keeps acting more like he's from the other party every time something like this comes up.

[bombthrower]

My two unskilled (legal) immigrant daughters, age 17, are working at a fast food restaurant here. They make $7.25. Why? The restaurant can't find anybody, hence wages are higher. Very FEW places actually pay minimum wage. The market already demands more.

[absolootezer0]

again, minimum wage is not a "living wage" if you're 18 making minimum wage trying to make a living on it, you're doing something wrong.
besides, what happens when you raise minimum wage? this little thing called INFLATION. when wages are forced up, a business has to compensate somewhere, usually by raising the cost of goods and services. now, what do you suppose that does to the amount of welfare received by people on it? well, that goes up to compensate also, so guess what, taxes go up. while we're talking about welfare, lets also consider that when minimum wage goes up, so will all poverty levels, so all the people that were receiving welfare will still be on it, but also a whole bunch of people who were just a little bit above (who didn't get that mandatory wage increase) will qualify for it now.
now we have costs of goods and services that have all gone up, profits still will have gone down, taxes will increase or something will be cut (but it won't be any form of welfare- that'll expand). now, how do you suppose this effects the other 90% of the workforce who DIDN'T get raises?

[griswold3]

"raising the minimum wage raises the union pay scales too"
I have yet to see a union contract that did not have this provision in it!!

[Protagoras]

Government control which includes mandating small business to verify citizenship?

The issue is government control of prices, not some other pet subject, even if it's all the rage right now.

Ping me to a thread about your subject if you want to talk about a different topic than the one being discussed here. I'd be happy to discuss any topic you like on the correct thread.

[dfwgator]

16 - 18 year olds still live at home, they don't need a "living wage."

[rhombus]

Nah, it's not really my "pet subject" although I know it means a lot to others. I do think that raising the minimum wage directly contributes to the need for cheap labor especially in the case of small business and it is not the "least" of the issue.

[Protagoras]

What other prices do you advocate that government set?

[Protagoras]

I do think that raising the minimum wage directly contributes to the need for cheap labor especially in the case of small business and it is not the "least" of the issue

So the fact that government sets prices instead of the market is less important than the effects of doing so?

If you didn't allow the communist type usurpation in the first place, the effects would be irrelevant, since there would be no effects.

[rhombus]

So the fact that government sets prices instead of the market is less important than the effects of doing so?

Well send me your scale from most important to least important as soon as you get it worked out and then tell my why it's worth bickering about. Maybe I'll even agree. Stranger things have happened. ;-)

[Republican Wildcat]

Sen. Edward Kennedy, a Massachusetts Democrat, unsuccessfully tried to attach the proposal raising the wage for the first time since 1997 to a defense authorization bill that is expected to be passed by the Senate soon.

More hypocrisy from the Democrats. Last year they said it was outrageous that the House had attached ANWR drilling to the Defense Appropriations bill, saying it wasn't germane.

[plain talk]

No one can live alone and provide any semblence of a "life" on minimum wage. I do agree that with a thimble full of initiative one should make more than minimum, but if we want our 16 - 18 year old's to truely learn life skills, we need to give them an honest chance

Your post makes no sense. The best you could give them is (a) a job and (b) an incentive to not stay at minimum wage. Rasing the min wage reduces jobs available for unskilled labor. No one is supposed to remaining working at minimum wage which is why it is called "minimum" wage. They should be incented to increase their skills and make more money. There is no rational reason in the world why we should make McDonald's pay 16 year olds more money. Most min wage jobs go to teenagers.

[Myrddin]

Minimum wage forces employers to pay unskilled labor at rates that may be well beyond the value of the labor they can perform. The consequence is that an employer will hire fewer such employees to limit losses. When the smaller number of employees is trained and producing in excess of the labor cost, the employer has room to bring on another unskilled hire.

The socialists that push for minimum wage forget that the reason for hiring workers is to improve the productivity of the business to meet customer demand. Socialists believe employers exist to provide jobs. If there isn't enough demand for the product of the company, the employer must shed employees to avoid going in the red with labor expense that isn't balanced by product sales. That is a key failure in the European approach to employment for life with no care for the actual productivity needs of the business.