Alright so lets go through the consequences of what happens when the minimum wage is raised. Wal-Mart will then have to start paying more to it's employees. Wal-Mart will also raise it's prices to keep the profit margin constant, go to make a buck you know. At that point in time, all the people who work at Wal-Mart will start paying more for all the things they also buy from Wal-Mart, and they will be just as poor after the minimum wage hike as they were before.
Secondly, I will get screwed because my prices at Wal-Mart will also go up, but my wages won't.
5 comments:
Don't forget the government. They rake in more taxes from the increase in wages.
Chaitanya
Union shops. Basic union wages are generally tied to the minimum wage. 2x or 2.5 times. Whatever. So if the minimum wage goes up then the wages at all union shops go up and you get to pay for it all.
Its not really about the minimum wage earners which are usually college or high schools students, its about appeasing the unions who support democrats.
The democrats support their base and it looks good in a sound bite by the MSM.
"Its not really about the minimum wage earners which are usually college or high schools students"
I don't know if that is correct or not. Based on personal experince at walmart, most of the people there look like 20+. Don't forget the elderly greeters, there are at least 2 or three in every walmart I go to.
I would like to belive that most of the minimum wage earners are on there way to somthing bigger, but those numbers don't seem correct to me.
Most minimum wage earners are just just really under educated and mostly going no where. More importanly giving, them more money will not help that much.
"They rake in more taxes from the increase in wages."
http://www.rushlimbaugh.com/home/menu/top_50__of_wage_earners_pay_96_09__of_income_taxes.guest.html
"The bottom 50%? They pay a paltry 3.97% of all income taxes."
So I don't buy that arugment either.
Unions...
http://www.bls.gov/news.release/union2.nr0.htm
" In 2006, 12.0 percent of employed wage and salary workers were union members, down from 12.5 percent a year earlier, the U.S. Department of Labor's Bureau of Labor Statistics reported today. The number of persons belonging to a union fell by 326,000 in 2006 to 15.4 million. The union membership rate has steadily declined from 20.1 percent in 1983, the first
year for which comparable union data are available."
Union member shipis actually fallying so that aspect will play less of a part into the rising of prices.
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