Minimum Wage......$7.25?
It appears as though the Republican controlled House of Representatives has stolen a play from the Dem's playbook. They appear to be set to pass legislation that would increase the federal minimum wage to $7.25.
A person making the minimum wage earns $10,700/year at the current level, which is below the federal poverty level.
The article states that, "Inflation has eroded the minimum wage's buying power to the lowest level in about 50 years".
Of course, there looks like there will be a fight over the issue.
The Dem's think that, "Republicans planned to add "poison pills" for their business allies", while the Conservative Republican's think that, "Quickly increased labor costs unrelated to business conditions will encourage or force employers to fire employees, reduce working hours for existing employees, and/or postpone plans to hire additional employees".
Election ploy or not, the cost of living is at an all time high. A dollar simply doesn't go as far as it once did. I'd say it's time to seriously consider raising the minimum wage.
posted by RBV @ 8:20 PM
3 comments
3 Comments:
I thought you were smarter than this RedBull.
How does raising the minimun wage help anyone?
Do we think businesses wont raise prices to offset the costs of the increased wage costs?
"Do we think businesses wont raise prices to offset the costs of the increased wage costs?"
Maybe. Maybe not.
If people had more buying power they might increase overall sales and economic activity. That would be a good thing. As it stand now, people on minimum wage are not doing that because, "Inflation has eroded the minimum wage's buying power to the lowest level in about 50 years". So, they don't contribute much to the GDP, which is mostly made up of consumer spending.
IMHO, most folks won't take a job making minimum wage anyway...they will either not work, or wait for a job that pays more OR they will take a job that pays them under the table.
I agree with your assessment that many ppl will not work for minimum wage.
Also, this typically wont help the economy as a whole b/c while some may end up making more money, some will lose their job as a result; so it all equals out.
This will especially hurt our small businesses (the real small ones, not the $25 million ones).
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