Do You Think About The Minimum Wage Should Be Increased or Decreased?
It needs to be increased and adjusted to keep up with inflation. Companies need to provide a living wage to their employees and stop expecting govt assistance to fill in the gaps. People who work should not have to be on public assistance to feed their families and meet their basic needs.
Well Christin S-
Help me understand exactly where all of the extra money will actually come from to pay higher minimum wages? Increased costs to a business directly cause increases in prices. Prices go up, buyers go down, business fails.
that's a common argument that isn't factual - companies making billions in profit can afford living wages without dramatic increases in price. Australia min wage is $15 a big mac at McDonald's costs only pennies more than here.
Christin, you cannot explain economics between 2 different countries by minimum wage and cheeseburgers. There are way more variables than that. Plus comparing Australia to the US is comparing apples and oranges.
The point still stands - there is minimum space to answer here. My point being a living wage does not mean prices on everything will soar - that is a scare tactic.
The reality is that people adjust the market by demand, not by laws. You should read "Free to Choose" by Milton Friedman and also "Boom and Bust" by Alex Pollock.
The wages that restaurants and other businesses pay their workers is simply part of their overhead. Just like the cost of goods, rent, taxes, utilities, and insurance, payroll control is a key factor in the survival and profitability of a business.
Randomly raising worker's pay is a surefire way to drive the business under. Then, NO ONE gets paid at all.
Business owners take significant risks in staring a new business. They incur substantial costs and huge drains on time and energy. Should their business fail (for whatever reasons) they lose it all. Their workers simply go find new jobs (and inconvenience for sure, but no loss of invested capital).
A business is not a golden goose that produces unlimited golden eggs. Under a well controlled and well managed environment a business can survive and pay its bills along with a reasonable profit margin to the owner who took all of the risk.
Just ask the American Auto industry what happened when labor costs ran amok. Bankruptcies, bailouts and outright failures. Then everybody's out of work.
Lastly, minimum wage was never intended to be a living wage for a head of household/family. It was for new/young workers just starting out.
Minimum wage shouldn't be determined by law. Of course everybody should earn enough, but what is enough? who determines what enough is? Aren't we all grown up knowing what wage to accept, or not, when we apply for a job? Why should governments decide what companies can pay? If a company offers a bad wage the employer has the right and the capacity to reject it, doesn't he? and he should do it! No one should accept to work on for an insufficient income. It shouldn't be the government job to determine what is, or not, sufficient.
and what of those who live in areas where other jobs aren't available? We have laws for good reason. Enough is not having corporations raking in record profits while we taxpayers subsidize their workers food/medical etc.
Those still have the right to refuse. In my country corporations explore people. And that's why I refused to work for one and I'm self-employed. Is it easy? God NO! I went through a really hard time. People should be free to chose & face conseque
sure we can refuse - and end up homeless, hungry etc. Not everyone can be self-employed, I am, but recognize others don't always have a lot of choices. A living wage isn't asking too much.
As win-winresources mentions, What if a company just can't pay what is asked? If the wage is not good enough ppl just refuse to work! and a company raises or closes. If it's raised by law, a company may have to close and send everyone to unemployemen
companies that can't pay a wage that allows workers to have a basic standard of living don't deserve to be in business. Many of our workers are on public assistance even making above our minimum wage. It's exploitative of the workforce.
well... in that case unemployment would be even worse! If people accept a wage is because its compensating... maybe if the government didn't assist employed people they would just refuse to work for exploiters, and the market would work freely.
you can't just trust the free market to do the right thing, that's why we have regulations in place. Our "free market" worship has caused corporations to never face consequences here. Unfettered capitalism doesn't work.
And I don't trust government. our big government lead us to the 3rd bankruptcy in 40 years, so, I do prefer people to be able to decide by themselves and be strong enough to say no to big corporations. with some regulations, just not to much.
and you just admitted "some regulations" are necessary. A govt should work for its people, ensuring their employers meet their basic needs so taxpayers aren't subsidizing corporations is not overreach.
I'm Awestruck! I thought this question would not get answered but I'm amazed by all the responds by all the hubbers. Everyone has a valid point in this matter.
Tax payers shouldn't subsidize anything except for people in real need... So regulations are needed, yes. But, in my opinion, not for the amount people accept, or not, to receive for their work. If people work for any amount it's 'cause they accept.
You are right on the button. People with zero understanding of macro and micro economics make broad unsupported statements and claim them as fact. Just because words fall off of someone's tongue does not make them true. Personal responsibility
Definitely increased. I don't work for a minimum wage and it's difficult enough to get by even without more than a few amenities . For individuals on a minimum wage who have to support themselves, it's hard enough. Think what it would be like for those with families to support on the same income or not much more.
It needs to be increased big-time. Counting for inflation, wages have not gone up at all since the 70s, yet the relative cost of goods has increased quite drastically.
There is only one group of people that has seen any wage increase in the past 40 years, and it's (you guessed it) the upper 5%. Whoo-hoo.
Yes, it needs to be increased.
Adjusted for inflation, the federal minimum wage peaked in 1968 at $8.56 (in 2012 dollars). Since it was last raised in 2009, to the current $7.25/hour, the federal minimum has lost about 5.8% of its purchasing power to inflation.
Some people argue that raising it will hurt the economy. And yet there was no minimum wage when we had the "Great Depression".
Obamacare was supposed to kill jobs and wreck the stock market. Job creation has increased monthly and the stock market is at all time highs. Fear of a bad economy has always been part of the argument for not helping to create a floor for those at the bottom.
Adjusting the minimum wage for inflation makes sense.
As a staunch trade unionist I say increased of course. In the health service here in Ireland we have had a lot of wage cuts-the basic trade union philosophy of maintaining custom and practice has not been maintained unfortunately
Increased since the costs of living are constantly increasing
Well it should depend on current inflation as a whole. There is no point increasing the minimum wage if products/items are getting cheaper (negative inflation). The initial benchmark must be given out as a guidance from the government as they have access to key information and economy in general.
The market should dictate pay. The government is the last entity that should tell a company how to run their business. Maybe when the gov gets its affairs in order, then they can tell us how to run our business. I mean, I try to tell them not to buy $500 screwdrivers, yet they don't listen to me.
When ten percent of the workforce has dropped out, such as those no longer counted as unemployed or taking disability due to depression from not finding work or retiring early at 55 because they can't find work, you cannot justify raising minimum wage.
by El Shaddai 2016 4 years ago
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