Obama finally plans to raise minimum wage

[oftheherd1]

Every time this issue has come up in the past, the same old arguements about it will cost jobs and increase unemployment are used. Historically the opposite has been true. The economy has grown and as a result jobs increase. I admitt that some companies who pay thier employees minimum wage might be hurt by increasing the minimum wage. However, as a whole that has not been the case in the past.

I not nor have I ever been a student of economics. But that just seems intuitively wrong. It kind of sounds like President Reagan's trickle-down Reaganomics. Much as I liked Reagan, I never agreed with trickle-down economics. Another thing that just seemed counter-intuitive.

 

[celtic_crippler]

I not nor have I ever been a student of economics. But that just seems intuitively wrong. It kind of sounds like President Reagan's trickle-down Reaganomics. Much as I liked Reagan, I never agreed with trickle-down economics. Another thing that just seemed counter-intuitive.

In the immortal words of Ross Perot, "Well...it didn't trickle did it?" LOL

Businesses that rely to a large extent on unskilled labor see their profit margins diminished and their expenses increased when minimum wages increase. This presents them with a challenge to their economic growth and factors into their economic decision-making.

That being said, according to an article published by the National Center for Policy Analysis, an employer would rather pay existing employees for working more hours than take on the cost of hiring a minimum wage employee, especially in a bad economy. Therefore, increasing the minimum wage makes it harder for minimum wage workers to find a job.

It also impacts the morale and productivity of employees already in the workplace who feel they have earned the salary they are receiving above the minimum wage, when the minimum wage is increased they do not in turn receive a raise to compensate for their perceived value. The employer can not afford it, and the increase in minimum wage decreases their chances of, as well as the amount of future raises in salary.

Most companies will gladly pay you what you’re worth. They see the minimum wage as a large expense in regards to unskilled labor; therefore, increases in the minimum wage result in stricter hiring criteria. This poses a big problem for young people attempting to enter the workforce. According to the Employment Policy Institute, every 10% increase in the minimum wage results in a 5-9% decrease in employment for young people attempting to enter the workforce. This often leads to increases in local unemployment, homelessness, and crime rates.

As with a lot of the rhetoric that comes out of Washington, it sounds and looks good on the surface but is never actually good for the country as a whole.