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Old 03-03-2013, 05:19 PM   #1
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Minimum Wage

I have recently written a Facebook post about how minimum wage will affect the economy. Here it is:

Dakota Spillman
So, once our government raises our minimum wage to $9 an hour... we will be in more of an economic crisis than before. In order to keep from declining, our companies will have to lay off more employees than ever before and reduce hiring. This will create even more unemployed Americans who cannot pay for their homes and support their families, young Americans who can't afford to be further educated past high school, and more Americans who will have lost their will for patriotism.

As for the employees still at work, they will have increased work hours that will disrupt their personal lives. They will be more hard-pressed to work and will most likely succumb to tire and overall depression and anger.

Does anybody disagree with what I think? Can anybody please suggest a shining light to raising minimum wage?
Like ∑ ∑ Share ∑ 17 minutes ago ∑

So, any thoughts? Konata has already made a nice point.
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Old 03-03-2013, 05:21 PM   #2
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Quote:
Originally Posted by Kieran Fulcher
They'd most likely cut costs elsewhere. You can't sack employees you need.
3 minutes ago ∑ Like ∑ 1
I agree with this.
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Old 03-03-2013, 05:23 PM   #3
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It's a moot point, because many large corporations can work out how to include so many employees into their workplaces.
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Old 03-03-2013, 05:36 PM   #4
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Possibly, but since the UK's minimum wage rose, unemployment levels have actually dropped. Might be because higher pay is an incentive for people to get the lower paid (now better rates) jobs. Also, when it does rise, it's only going to effect people who are actually on the minimum wage. These are people like cashiers. Most places already employ less than they need and would struggle if they fired any more.

Say it did heighten unemployment, I'd say go for the living wage. That's where the employer would pay whatever minimum wage is in America right now, and the Government would pay the excess. That sounds bad, but it's a lot cheaper than paying them benefits. Say it was $7 minimum wage. The living wage would be $9, so the Government pay the extra $2 of the wages. That's $16 a day for an average full time day, and about $80-$96 a week. That's better than paying them welfare.
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Old 03-03-2013, 05:46 PM   #5
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Living wage would only work if the government could afford to do such a thing. I don't think the government should be interfering with businesses in that manner.
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Old 03-03-2013, 05:50 PM   #6
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But welfare is roughly $500-$600 a month. Living wage would cost between $320 & $384 or possibly as low as $192 depending on their wage.
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Old 03-04-2013, 11:26 PM   #7
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A balance between capitalism and socialism is what we need. The corporations should be forced to pay more without a reduction in man power. Simple as that. They make plenty of money. The trickle down has become little more than a slow drip at this point. Trickle down economics is only effective during times of fast economic growth. That part of americas history is over now. We need regulation on a massive scale..
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Old 03-06-2013, 04:44 PM   #8
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I was told something very interesting. If minimum wage was raised, there would be a minor shortage of employment, but eventually companies will start getting more money because people will be spending more. So I guess I shouldn't have been worried after all.
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Old 03-06-2013, 05:11 PM   #9
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I'm not going deep into this one, all I will say is my standpoint. I believe the increase in Minimum wage is a good, if not great thing.
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Old 03-07-2013, 11:17 AM   #10
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It may also encourage more people to work, a lot of people don't work because the benefits they get work out as more than they would if they had a minimum wage. A lot of people on benefits spoke up and said "well no, why should I get a job that pays me less for working than the government does for me to sit on my arse all day?".
The majority of people who are unemployed in the UK aren't disabled or are unable to work, they can work but they choose not to.
Higher minimum wage would, in the long run, be better. The benefits system does need sorting out though.
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