Is raising the minimum wage bad for our country's citizens?

Question

Let me begin by saying I'm a proud youth Democrat, I'm on my fifth term as President of the Youth Democratic Society of American Minors and just earned tenure onto the board of directors. But I can't help but feel the decisions my party is making is not for the good of the nation, is in the spur of the moment and not thought through for the long term. If we raise the minimum wage, companies and businesses will raise their prices in order to accommodate for the loss of profit. These newly raised prices will negatively affect the middle class, who will now be struggling to keep up with the rising prices will fall into poverty; thus merging those on minimum wage and the middle class, causing an even larger rate of poverty, which could turn chronic across the nation. Does this seem accurate?
What are your thoughts? Please keep the answers without hate and try to keep unnecessary party differences out of this debate.

Also I'm only sixteen so please don't get frustrated with my point of view, I'm sure it might seem childlike.

Answer 1

Raising the minimum wage isn't entirely beneficial. It could potentially lead to more unemployment as some businesses may reduce their number of employees or reduce their hours in order to offset the cost of paying a higher minimum wage. Some may also increase the prices of products or services offered. It can also possibly lead to a decreased interest in college education since minimum wage jobs are paid almost the same or can be more than what jobs requiring college education pay.



On the bright side, there is greater purchasing power for workers with the revenue going back to businesses they patronize and products or services they avail of or purchase. They may be able to afford more in terms of living expenses and other expenditures like mortgage, bills, education, etc.



In relation to the minimum wage issue, here's a list of interesting articles, http://bitly.com/1geGNXP.

Answer 2

Raising the minimum wage is the right thing to do, $15 an hour is debatable. The cost of living has been going up for decades. The economic boost of putting more money in the hands of the working poor is also a plus. So is getting more Americans off of welfare.

Answer 3

A considerable amount of our workforce is at or near minimum wage. Most of your retail and personal service employees are paid at that level. These workers are non-union and not under personal contracts and are at the mercy of their employers. They haven't had a cost of living increase since the last time minimum wage was raised. Prices may rise, but not as much as some claim. The benefits of having more consumers having more money in their pockets exceeds any slight increase in prices.

Answer 4

Yes. Minimum wage jobs are not meant to be a career. They are entry-level positions so that people with no work history can show that they are capable of handling a job - you know, showing up on time, doing as you're told, learning new skills, etc.



If you are incapable of doing these things, then you are going to work minimum wage jobs your whole life.



Jobs are not there to provide you with a lifestyle of your choosing. They are there because that company needs something done for them and they're willing to give you money for doing it. If you want more money to have a nicer life, then you need to work harder and learn new things.



I realize that our welfare culture throws a wrench into this logic, but you're supposed to be responsible for your choices. I understand why people who actually work for a living feel slighted because the welfare queens live better than they do. However, the solution is not to raise the wages of people with minimal skills.



What happens when you force an employer to pay more money for a job that's not worth it?



1 - They automate. Remember when people used to actually pump the gas for you and check your car's fluids?



2 - They cut hours and jobs. The company only has so much money they can spend on wages. If they have to give one person $15/hour, they need to cut the hours from others.



3 - Those who are left with jobs will have to work twice as hard. When you force them to pay one person twice what they're worth, they need to make that person worth twice as much by working them harder.



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Answer 5

Companies are not likely to raise their prices. Instead they may compensate in other ways: reduce employee hours, slow down or stop hiring, engage in cost-reduction measures (look for alternative suppliers or something similar), etc. That's not to say these are good outcomes, they aren't, but I suspect companies would resort to alternative measures before increasing prices.



Inflationary fears as a result of minimum wage increases are simply not valid when looked at empirically.



A study, "The Effect of the Minimum Wage on Prices", found that a 10% increase in wages increased overall prices on goods by less than 0.4% and food by no more than 4% (the food industry is far and away the largest employer of minimum wage employees). This was based on data following past minimum wage increases.



http://ftp.iza.org/dp1072.pdf



In 2013, ten states raised their minimum wage, and yet inflation remains at around 0%.



http://www.usinflationcalculator.com/inflation/current-inflation-rates/



Additional studies in Florida and Arizona found that a business owner could fully cover the cost of a 10% wage increase by increasing prices by 0.1%, so an item that cost $100 could be marked up to $100.10 and cover the cost entirely.



http://www.peri.umass.edu/236/hash/d712f24f9c05c160a8535cad0b1a014f/publication/238/

http://www.peri.umass.edu/236/hash/f847fe31697e70fbafc69f137aea7061/publication/178/

Answer 6

A large % of minimum wage workers are young people from middlle and upper income families who live at home. Relatively few are adults supporting a family. When the minimum wage increase results in fewer jobs it will be poor families that are hurt the most.

Answer 7

No, I fully understand what you are saying and it is a true fear. That said, there is a more major underlying problem with the concept of corporate citizenship/personhood and tax breaks/bailouts for failing industries and companies.



In a true system of capitalism, competition is key to improving the quality of goods, life, and business practices. Businesses with bad models that put out bad products, treat their employees poorly, and don't follow federal safety and ethical requirements fail and disappear very quickly. What's left is businesses that do follow those practices and can focus on creating the best services and products instead of focusing on short-term monetary gains.



When companies get as large as the mega-corporations you see today, they have a strong-hold on Washington D.C. and law-makers, paying out politicians to force them to make laws that keep their company strong, as opposed to creating a strong company on their own. They lobby for de-regulation of safety standards, keeping minimum wage low, avoiding paying out employee benefits, being allowed to hire more part-time and temporary workers.



All of this is to save money, and this is why the business world is so problematic in the USA. Small businesses and non-corporate businesses are being squashed by the mega-corporations who have a strong-hold on the government and it prevents innovation and new ideas from spreading. If a small business happens to have an idea or service that is really successful, the huge corporations are quick to swoop in and try to buy out that small business.



At least some of these could be dismantled if we were able to get rid of "Citizens United" and other acts associated with it. Always, ALWAYS remember the line, "Money is not speech."

Answer 8

Here's how it works-

Increase minimum wage, forcing companies to pay their workers more...raising prices on everything.

So basically what it means is that the poor stay poor. Cause if you're making the extra money but everything around you is also going up in price you're basically in the exact same position.

Answer 9

I don't believe your analysis is accurate. It has not happened during past increases of the minimum wage. Usually companies do not increase prices that significantly because they do not want to lose business to their competitors. Instead they make up their profit losses to the wage increase with profit gains from a growing pool of consumers available to their products and services. For example, retailers see more customers who work in restaurants and restaurants see more customers who work in retail, increasing their profits despite paying more for their own minimum wage workers.

Answer 10

Raising the minimum wage above the market rate is detrimental to the market.

Answer 11

In places where the minimum wage has increased, the local economy is doing better.

In places where it's stayed the same, the economy has stayed the same.



So you tell me, is it better?

http://www.cepr.net/blogs/cepr-blog/2014-job-creation-in-states-that-raised-the-minimum-wage

Answer 12

If you raise the minimum wage



Prices will soar, and companies that can automate and cut Jobs will



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the only people its going to hurt are the ones it seeks to help

Answer 13

I think we should at least raise they of soldiers so their families don't have use food stamps.



Also a democrat.

Answer 14

only a person who's never held down a job would ask this.

Answer 15

A system that relinquish the mayority in order to reward the minority is far from civil...

Answer 16

Your opinion is not compatible with liberalism.

Answer 17

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