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View Full Version : How will forced minimum wage increase affect economy next month?




Matt Collins
06-16-2009, 07:39 PM
The unconstitutional minimum wage increase is being forced upon everyone next month. How do you think this will affect the economy?

malkusm
06-16-2009, 07:44 PM
More unemployment, lower profits for businesses that employ cheap labor...less investment spending, perhaps.

Dr.3D
06-16-2009, 07:46 PM
More unemployment, lower profits for businesses that employ cheap labor...less investment spending, perhaps.

What he just said.

ItsTime
06-16-2009, 07:49 PM
Nothing but good, poor people spend all their money rich people hoard theirs and never spend a dime. /end sarcasm

Theocrat
06-16-2009, 07:49 PM
http://bernardaw.files.wordpress.com/2009/01/minimum-wage.jpg

MRoCkEd
06-16-2009, 08:01 PM
/\

123tim
06-16-2009, 08:03 PM
I think that it will bring everyone (who is making above minimum wage) closer to the minimum wage.

Zippyjuan
06-16-2009, 08:29 PM
If they are working full time, it will cost an employer another $28 a week or a bit over ten percent more (from $6.55 an hour to $7.25 an hour- a 70 cent increase). Part time, less. In 2007, about two percent of the work force was paid the federal minimum wage. http://www.bls.gov/cps/minwage2007.htm Many states already have minimum wages higher than the federal minimum wage. As of January of this year, there were 12 states which had their minimum wage the same as the Federal one-
Idaho
Utah
North Dakota
South Dakota
Nebraska
Oklahoma
Texas
Indiana
Kentucky
North Carolina
Virginia
and Maryland.
http://www.dol.gov/esa/minwage/america.htm

Objectivist
06-16-2009, 08:32 PM
Exactly the same way Milton Friedman feels about it, a negative for the economy and more importantly the workers that will have fewer jobs.

WHo wants to put against MF on this issue?
YouTube - Milton Friedman on Minimum Wage (http://www.youtube.com/watch?v=ca8Z__o52sk)

Number19
06-16-2009, 08:56 PM
I don't think I saw it mentioned, but there will be a micro tick upward in price inflation. This will show up in the 3rd quarter reports, but likely won't be broken out of the overall number and will get little publicity. As mentioned, the effect of this will be mitigated by some unknown cutback in employees, and/or in combination with cutbacks in weekly hours worked.

james1906
06-16-2009, 10:08 PM
More illegals getting paid under the table.

Steeleye
06-17-2009, 12:17 AM
Not sure, but it will increase da gubmint's coffers.

YouTube - President Coolidge, 1st Presidential Film (1924) (http://www.youtube.com/watch?v=5puwTrLRhmw)

Objectivist
06-17-2009, 02:05 AM
I know what you're saying but the more they get the more they spend. Hell they just make numbers up and keep printing more cash.

tangent4ronpaul
06-17-2009, 05:53 AM
I think a lot of small businesses (and some larger ones) are going to go out of business.

but yeah - employee downsizing, pay cuts to other employees, reduction in benefits, etc. and obviously price increases - so everyones money doesn't go as far.

-t

silverhawks
06-17-2009, 06:09 AM
Definitely more unemployment; the best intentioned small business won't be able to keep up if its already struggling.

Krugerrand
06-17-2009, 07:22 AM
I certainly don't support the concept of minimum wage. Still, I don't think this will have much of an affect either way. As the dollar devalues and prices increase, supply and demand already forces wages up. As somebody pointed out above, many states already have a higher minimum.

Of course, this will put pressure on some businesses. ... anywhere that somebody's efforts are worth less than minimum wage.

Overall impact ... reasonably insignificant.

Dieseler
06-17-2009, 10:56 AM
The pincer effect.

TastyWheat
06-17-2009, 06:09 PM
No more 5-5-5 deal at Domino's.

Zippyjuan
06-17-2009, 10:07 PM
If you are in one of the states which do not have a higher minimum than the Federal miinimum wage and have ten full time employees at the minimum wage the increase will cost you $280 in profit a week (assuming you do not pass the increase on to your customers). Not really that much. Does it bring much benefit to minimum wage workers? Not much noticable change for them either. Maybe $20 a week after taxes.

2young2vote
06-17-2009, 11:58 PM
Yes it will. At the ice cream shop i work at we had to raise prices and hire less people the next year after the minimum wage was increased to $7.something per hour here in Michigan. So, all the government did was lower the amount of people my employer was willing to hire the next year (its a seasonal business) which potentially increased unemployement (depending on whether they were able to work all year long, some do). Good job government, you just made it impossible for some good people to get jobs. Now they might have to go on unemployement.

GreenCardSeeker
06-18-2009, 12:04 AM
Sweden has had minimum wages for specific jobs enforced by trade unions for some time now. The lowest you can pay a janitor working full time is like $1800/month or so. As a consequence, the number of private jobs is now the same as in the late 1930's even though the population has grown by 2 million. The youth unemployment rate is at 24% now and projected to hit 30%. As a consequence of this youth unemployment, mental health among young people has taken a sharp turn downwards - a recent report found that 1 in 6 unemployed, young women had attempted to commit suicide, and 1 in 25 young men. 1 in 4 of these men had contemplated suicide. Sadly, these young people don't understand politics - something like 70% of young Swedish voters vote for left-wing parties, they think more government would help. Definitely a lost generation.

For more info about this madhouse of a country, see my movie at http://www.socialistutopia.org/ - I guess with Obama in the white house, the USA will be the same in a few years.

Volitzer
06-18-2009, 12:09 AM
The unconstitutional minimum wage increase is being forced upon everyone next month. How do you think this will affect the economy?

It will give it a temporary shot in the arm making things affordable again.

However we need to get minimum wage up to $10 an hour nationwide and have America start producing again to really bring back the economy.

It won't happen until we either elect Ron Paul or someone from the Constitution Party who knows what America needs to do to get back on the right track.

stag15
06-18-2009, 12:12 AM
If our currency was backed by gold, we wouldn't have 4-6% or more inflation. Therefore, we wouldn't need to increase wages because the costs of goods wouldn't be skyrocketing.

Matt Collins
06-18-2009, 08:16 AM
However we need to get minimum wage up to $10 an hour nationwide and have America start producing again to really bring back the economy.

It won't happen until we either elect Ron Paul or someone from the Constitution Party who knows what America needs to do to get back on the right track.:confused: This makes no sense at all.

Dieseler
06-18-2009, 08:34 AM
In America the minimum wage should be reserved for High school kids looking to make a little extra cash.
Back in the late 80's and early 90's I owned a tree service and when I hired a new ground man I told them right off the bat, "If you aren't worth $10.00 an hour to start, I can't use you." That was a fact.
Now what is happening in my opinion, is that job I would have paid a guy that would hustle, $10.00 an hour to do, is fixing to be fixed at minimum wage. That is regressive in my opinion.
What do you think?
I might as well extrapolate a little more on this while I am at it.
A persons ( A grown up person, Adult) wage in America should be left as a contract betwixt him or her and their employer. It should be open to negotiation when either they or their employer feel they are worth more or even in some cases less.
Minimum wage will defeat any ability to negotiate because it will set the rate for what some jobs are considered to be worth period. I'm not talking about soda jerks and McDonalds employees here. I'm talking about people that do jobs which require skill and effort. Setting a minimum wage to these jobs should be unacceptable to Americans.
During my time as a tree service operator I began to notice the influx of illegals. They were most often noticed working for land scape crews at first, cutting grass, mainly because that was the easiest entry level labor job that one could get and grass cutting was a pretty good gig back then, at least that's what I was told by landscape company operators as far as risk vs, reward goes.
Now for a sad but true conclusion I will add this.
I remember talking with crew mates at lunch,( working for a Power company contractor) about 9 years ago as we sat eating lunch by the trucks watching a full crew of illegals cut a rich dudes lawn.
I told them this. "If you boys don't start coming to work on time, doing what your supposed to while you're out here and staying until its time to go home and I mean working every minute of the time you're paid to work,... Them boys over there are going to get your fucking jobs."
They all laughed at me.
Last week I watched 4 trucks full of Mexicans trim the power lines in front of my house.
I truly felt like crying as the prophecy I had laid down to them good old boys had fulfilled itself.
I know I'm rambling here but minimum wage is not the answer.
Working the job is the answer.

Krugerrand
06-18-2009, 08:57 AM
In America the minimum wage should be reserved for High school kids looking to make a little extra cash.
Back in the late 80's and early 90's I owned a tree service and when I hired a new ground man I told them right off the bat, "If you aren't worth $10.00 an hour to start, I can't use you." That was a fact.
Now what is happening in my opinion, is that job I would have paid a guy that would hustle, $10.00 an hour to do, is fixing to be fixed at minimum wage. That is regressive in my opinion.
What do you think?

I think this is true only to the extent that inflation lowers the value of the $10.00. So, if instead of saying "if you aren't worth $10.00 an hour" you had said "if you aren't worth the price of 1/10th of an ounce of gold a day," or more practically, "if you aren't worth the price of 5 gallons of gasoline an hour" then the equivalent wage would probably have gone down in value despite going up in amount.

Somebody's efforts not worth $10.00 an hour a year or two ago may be worth $10.00 an hour now. Certainly, if not now, they will be soon - even though the effort hasn't changed.

My point ... inflation is the problem. Minimum wage really doesn't keep up with it and is "mostly" irrelevant. All it does is pushes along the price increases that are going to happen anyway.

Dieseler
06-18-2009, 09:10 AM
I think this is true only to the extent that inflation lowers the value of the $10.00. So, if instead of saying "if you aren't worth $10.00 an hour" you had said "if you aren't worth the price of 1/10th of an ounce of gold a day," or more practically, "if you aren't worth the price of 5 gallons of gasoline an hour" then the equivalent wage would probably have gone down in value despite going up in amount.

Somebody's efforts not worth $10.00 an hour a year or two ago may be worth $10.00 an hour now. Certainly, if not now, they will be soon - even though the effort hasn't changed.

My point ... inflation is the problem. Minimum wage really doesn't keep up with it and is "mostly" irrelevant. All it does is pushes along the price increases that are going to happen anyway.

I added a bit to my post.
What I'm trying to say is that minimum wage is a trap and a joke that stupid people are starting to buy lock stock and barrel..
They are not going to raise it with cost of living period. Once they finish with their minimum wage legislation most skilled laborers that work legally will be trapped for all time in poverty with no hope for bettering themselves. They will have choice A and B both paying the same Government approved wage.
Look at how they are tricking people into accepting this by citing the screams of the lifetime soda jerk.
Fuck the soda jerk, I can get my own damn drink at the soda dispenser. McDonalds and its minimum wage pay is for kids and welfare monkeys.
Not everyone can climb a tree and top it with a chainsaw.
That takes balls.
Skilled labor are the people who are going to get screwed by minimum wage in the end.
I don't know shit nor do I care about gold, I know about and care about making a living that keeps up with the cost of living and only the ability to negotiate can protect that.
Oh yeah, and enforcing the law on illegals.