What's wrong with increasing the Minimum wage?

[psijac]

Here's a helpful video

[youtube]http://youtube.com/watch?v=Ct1Moeaa-W8[/youtube]

[AEA]

You will pay more for everything you buy.

[RX8er]

Great vid, thanks for sharing. The most important part of this was at 3:07.

[Superman]

It's a little of both. The video assumes that the owner will not raise his prices to partially compensate for the increased cost (and lower profit margin). The reality is that a little bit of both will happen, the cost goes up a little and workers will be let go as well.

Good video though, I reposted it

[jimlongley]

Any business that is already operating on the ragged edge of profit/loss will immediately either have to raise prices, which will probably result in loss from lack of business, or absorb the cost, which will result in loss from the balance sheet.

It appears, from my point of view, that bambam and his minions are trying to increase federal revenue by boosting the wage, and therefore the taxes paid, in the segment of society that pays the greatest, real, proportion of taxes.

[texanjoker]

I really wonder if it will make a difference? Those making minimum wage are on public assistance. Will the govt then go in and alter their benefits meaning they remain at the same level?

[Dave2]

FWIW, Milton Friedman agrees:
[youtube]http://youtube.com/watch?v=ca8Z__o52sk[/youtube]

[VMI77]

Here's a helpful video

[youtube]http://youtube.com/watch?v=Ct1Moeaa-W8[/youtube]

I think perhaps you're assuming the motivation for increasing the minimum wage is economic ignorance. I don't believe it is. All the effects of increasing the minimum wage benefit the left: the ignorant think the Dems are on their side; those who get raises and keep their jobs think the Dems did them a favor; those who lose their jobs are likely to become government dependents and left leaning voters; those who lose their jobs and a host of observers and leftists will blame being fired on evil greedy capitalists who don't care about the workers; those resisting such an increase based on their knowledge of economics can be demonized as in the pockets of the rich and greedy businessmen and not caring about the poor worker at the bottom of the socioeconomic ladder. Increasing the minimum wage is a total leftist win.

[n5wd]

I really wonder if it will make a difference? Those making minimum wage are on public assistance. Will the govt then go in and alter their benefits meaning they remain at the same level?

Not everyone who is earning minimum wage is getting public assistance. Far from it. And it's those who aren't that will benefit most from a raise in the minimum wage.

[Abraham]

I thought minimum wage to be a starting point in income earning - not a career salary or an amount calculated to live on.

So, what am I missing?

[StewNTexas]

An often overlooked viewpoint is that many union contracts are tied directly to the minimum wage.

To mantain 'their standards', contracts may contain language that requires the employers to increase the union wage to keep a predetermined 'gap' between their wage and minimum wage. The minimim goes up, lots of people get a raise.

[Wes]

Any increase in wages, without an appropriate increase in income will result in either higher prices for the consumer or more unemployed people. It's very simple, and I agree with the above, it's a win win for the left. What the Bobs of the world don't realize is it is them who are ultimately being hurt by this, just as much as the Carl's.

[Tamie]

I think perhaps you're assuming the motivation for increasing the minimum wage is economic ignorance. I don't believe it is. All the effects of increasing the minimum wage benefit the left: the ignorant think the Dems are on their side; those who get raises and keep their jobs think the Dems did them a favor; those who lose their jobs are likely to become government dependents and left leaning voters; those who lose their jobs and a host of observers and leftists will blame being fired on evil greedy capitalists who don't care about the workers; those resisting such an increase based on their knowledge of economics can be demonized as in the pockets of the rich and greedy businessmen and not caring about the poor worker at the bottom of the socioeconomic ladder. Increasing the minimum wage is a total leftist win.

You missed a few things. Inflation hurts investors and savers by watering down their wealth. Inflation benefits debtors by watering down their debt. There is no more reliable way to create inflation than increasing the artificial minimum wage. It's neck in neck with watering down the dollar by running the printing presses 24x7.

[gthaustex]

It's all pretty basic economics, which, unfortunately, is not really taught any more in schools prior to university level classes. Even at the university level, a lot of people don't have more than a brief knowledge of economics. It doesn't take much to confuse people and obfuscate the details and outcomes of decisions at that point....