Can someone explain to me how raising the minimum wage is going to solve any problems?

 

Minimum wage going up = cost being subsidized by the consumer.

 

Make no mistake about it, businesses are going to raise prices to compensate for their increased human resource expenses. In some cases those human resources will be replaced with cheaper machines (McDonald's kiosks anyone?) that don't need wages or benefits.

The one thing you can count on is that businesses will protect thier profit margin and that will be done by transferring the costs to the consumer. This means that once everything stabalizes:

1. The poor will end up wages that they still cannot live on.

2. There will be more poor people than there are now. (do you really think raising minimum wage will mean everyone else will make more money too? Pretty fking naive if you do)

3. The middle class will shrink even more and have less purchasing power. See #2

4. Corporations and Wall Street will continue along as they do now. Of course they will, because they are transferring the costs right back to the consumer.

 

 

 

It won't. But that isn't the purpose of this whole campaign. The group of people who would be working these jobs will be hurt the most, but most are too ignorant to know that. The dem politicians, however, are willing to sacrifice these people to get votes.

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I :heart; Q

I don't see this helping the low-skilled worker. Either the minimum wage workers will be replaced by iPads or entry-level college graduates, who would be making about the same at a lot of entry-level positions, will take those $15/hr jobs. Either way, the net result is going to be a decrease in employment among the low skilled workers.

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"The government who robs Peter to pay Paul can always depend on the support of Paul," - George Bernard Shaw

“Don’t underestimate Joe’s ability to f—k things up.” - Barack Obama

“End of quote. Repeat the line.” - wise words from Joe Biden

If you don't want to settle for the usual armchair analysis, google "minimum wage study".  There's plenty of information out there.

Remember, it may start by changing employment and pricing dynamics, but it also increases buying power.  You can't just look at first order effects and be done with it.  That's your stupid taking over if so.

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Wiki wiki

You are paying for this one way or the other.   You can pay more for a burger or you can pay more in taxes as the US subsidizes McDonholes underpaying their employess.  

Some random information:  http://journalistsresource.org/studies/economics/inequality/the-effects-of-raising-the-minimum-wage

A little more about the arcane nature of this law

• "The American federal government requires a wage of at least $2.13 per hour be paid to employees that receive at least $30 per month in tips. If wages and tips do not equal the federal minimum wage of $7.25 per hour during any pay period, the employer is required to increase cash wages to compensate."

$2.13 since 1991.

 

I love when people bring up the kiosks.

You're going to get the kiosks with or without a change in the minimum wage. Fast food doesn't hire poor people as a charity, they need them, until they don't. A change to the minimum wage is overall irrelevant to the advance of automation. Yes, there's an argument in terms of the business case, but they are coming either way. Been to Lowe's lately? Winn Dixie? Wawa even?

One might argue that your dollar meal is currently subsidized by the minimum wage worker. Raising the base and a shift in cost to the consumer isn't automatically a bad thing.


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"Hey, where's Cricket?" - Kristi Noem's daughter.

Increases the buying power for who? As I am not a minimum wage worker, I can guarantee that my salary isn't going to go up. If my salary stays the same and prices go up, that would be a decrease in purchasing power for me and my family. The corporations sure the hell aren't going to be feeling it.

"You're going to get the kiosks with or without a change in the minimum wage"

Word

"One might argue that your dollar meal is currently subsidized by the minimum wage worker."

Yes and we are all paying for SNAP and other social programs to assist the chroncally underpaid.

"Increases buying power for who?"

 

My bad.  I was under the assumption that you would have some insight.  Or even google and read.

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Wiki wiki

No shit captn obvious.

Anyways, I was just using kiosks as an example, it wasn't strictly a comment about kiosks. Automation is going to happen no matter what, however, this will speed up the conversion to automation and open up other areas for it sooner where perhaps it might not have been as cost effective.

I firmly believe some form of technological induced socialism is eventually going to be forced upon the world, but we aren't close to that yet.

My bad, I assumed you weren't a douche.

Again, if my expenses go up and my wages don't increase in kind ...what is going to happen to my purchasing power? You avoided answering that. I already know the answer to it. I was asking you.

GFY.  I can't think for you.

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Wiki wiki

If you want to be a condescending douche because I have a different opinion than you, so be it. Also, Since you still avoided answering my question, I am going to assume that you can't.

If you post something ignorant don't get mad because some people take time to try and educate you.

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"Hey, where's Cricket?" - Kristi Noem's daughter.

This isn't a very valid response. First, you don't educate someone or sway opinion by being condescending from the get go. Secondly, assuming ignorance because of opinion difference is also silly.

 

There should not be a minimum wage determined and enforced by the guberment..........

If they want to help the middle class they should enforce a minimum salary to at least $100,000!!!

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I troll 2L.com to be a better person in real life

Anyways, calling me stupid or ignorant isn't a valid argument against something that I believe could ultimately end up causing a middle class squeeze from wage push inflation. Raising minimum wage isn't going to help the middle class and the largest earners and corporations won't be affected. Sure it is nice to believe that corporate america will use some of those record earnings to subsidize the wage increases, but that is naive. Remember, greed is good. Everybody should be able to make enough to live on, but just raising minimum wage won't do that. Middle class income needs to be increased as well in proportion.

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Water dissolving...and water removing
There is water at the bottom of the ocean

I didn't intend my post to be condescending, but re-reading it I can see why it was taken that way. I offer my apology on that point. The minimum wage has not kept pace with inflation, and with the decline of unions workers have little or no power to negotiate wages. Further, it stimulates the economy because nearly all low wage worker income goes directly back into the economy because they spend all of it, versus tax cuts for the wealthy who hide it in offshore hedge funds.

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"Hey, where's Cricket?" - Kristi Noem's daughter.

That's a terrible assumption and having a different opinion than the collective is grounds for re-assimilation, resistance is futile.



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Specializing in sarcasm and condescending rhetoric since 1971.