Did you know that indexing the minimum wage will have a positive affect on the economy?

Question

Indexing the minimum wage is not a raise in the minimum wage its just keeping up with inflation. How can something that keeps up with inflation be inflationary? That just makes no sense.

If you are really worried about inflation then you should look at welfare and all its myriad programs which not only are indexed to inflation themselves but they cause local taxes to go up as well. So by rewarding work you actually get more people off the welfare line which will decrease any further need to increase taxes.

Its simple math, the more people join the work force the less people you will have on welfare which means that you can start dismantling some of those programs. That also means that there will be less jobs that Americans won't do available for illegals to cross the border for. Its more of a re-balancing of the economy from welfare to work.

There is documented evidence for this.

http://www.pennlive.com/midstate/index.ssf/2013/02/raising_the_minimum_wage_econo.html

Answer 1

Of course it will. That's the whole point of indexing it, to raise it automatically to make up for lost purchasing power due to inflation.

Answer 2

It is a raise in the minimum wage. If you want to reduce the burden on welfare programs just get rid of the minimum wage. Minimum wage earners are about 5% of the workforce and 2/3rds of them are teenagers. But what about deflation? Wages are sticky, meaning that they are not very likely to move in nominal terms. So if we had a period of inflation, and then one of serious deflation, workers would be hostile to a drop in their nominal wages even though they aren't, at bottom, losing any purchasing power. So you will find that the "index" may not be as simple a solution to the problem as originally thought. The other problem is your current tax code, it doesn't account for inflation, so people who haven't actually made more money in real terms are paying more in taxes because they meet the arbitrary nominal figures defined in the tax code.







I did not leave welfare out my rationality, re-read my second sentence. Welfare seldomly works in the way with just a check in the mail. Many states have transitioned to a Work-First program, which is why the Boards of Social Services of many states have joined with Work Force (The Labor Department.) I'm not saying that when people o are reluctant to go back to work or look for work once on welfare, what I am saying is that indexing the minimum wage will have little affect, if any at all, on reducing the burden of welfare programs.



Agreed, deflation is usually crisis driven.



A great book on this is the Money Illusion by Irving Fisher a little outdated but still holds weight.

Answer 3

According to YOUR source, there is no such evidence.

I see your confusion. When someone with academic-sounding credentials SAYS SOMETHING, you Democrats consider that in and of itself to be "evidence." It isn't.

So, when someone whose name has "Professor" before it tells you that if we REPEAT a past action, the result "this time" will be the exact opposite of what has ALWAYS HAPPENED BEFORE, you Democrats actually BELIEVE the "EVIDENCE" shows this.

Here's the part you can't possibly understand. I'll mention it anyway because OTHER people will:

> If the economy is trending UP then after a "minimum wage hike" is is STILL trending up - but MORE SLOWLY, Democrats ALWAYS claim the raise CAUSED growth when it in fact DEPRESSED it.

> MOST minimum wage increases in History happened DURING BOOMS and in ALL cases of a CONTROLLING increase, downward pressure on the economy was EVIDENT immediately thereafter. No exceptions - anywhere - ever.

> This result is contemplative of there being an ACTUAL CONTROLLING increase. Nominal increases in the minimum wage that still fall BELOW the "market minimum" naturally have NO EFFECT AT ALL and therefore do not harm the economy. Illustration. If virtually no one is working for less than $10/hour in a place with a $5/hour minimum wage and the minimum is raised to $8/hour the REAL "minimum wage" REMAINS $10/hour. Nothing changed so no harm is done. ONLY by including THIS type of case has anyone ever found EVEN ONE time/place where a minimum-wage increase failed to deliver a depressed economic trend-line and HIGHER UNEMPLOYMENT with FALLING per-capita average wages.

Answer 4

i like the actuality that a collection of chilly-hearted, bean-counters sit down around telling human beings that they haven't any want for a minimum salary fee because you may surly have confidence huge enterprise to do the excellent ingredient and to pay a respectable salary for the area want stuffed. in case you examine 0.5 those replies at right here, they are rather endorsing the thought jobs paying out minimum salary now would desire to flow decrease on the pay scale for the sake of greed and the skill to apply the word "nicely...that's what the industry helps so screw you while you're ravenous and in a state of penury!" in basic terms think of, if an agency would desire to pay you something they wished... say $3.50 an hour with out reward innovations you for 40 hours a week. Do you rather think of the cost of issues like gas, automobiles, and coverage might flow down because of the fact all human beings is being paid what the industry demands? What human beings fail to attain that even in this way of gadget, sturdy respectable workers might would desire to fill a number of those positions and the costs of primary, mandatory products does no longer deflate to a cost that she or he would desire to purchase. this is total greed and BS coming from people who already have some money and want further and further despite if it hurts others around them. I additionally love the thought folk purely place minimum salary earners at precisely the quantity speicified. while you're making 50 cents or maybe 2 money extra effective than the national minimum salary, you rather are not to any extent further useful off than the guy or lady making that precise salary volume. while you're 3 money interior the right minimum salary, you will desire to be grouped and categorised in any case salary earner and not something worth of satisfaction. you may tell lots with regard to the character of folk in this question. people who desire to end minimum salary at the instant are not drawn to enhancing the international of workers yet in increasing the revenue and dividends of companies so as that they benefit in some way. those comparable human beings will maximum in all possibility recommend the honest Tax concept and hear Neil "psycho" Boortz and any loud-mouthed, misanthrope GOP clown boy.

Answer 5

All I know since President Obama is raising the minimum wage all the prices go up.

Answer 6

Even if I agreed that there should be a minimum wage, it is really unfair. There are too many jobs that do not qualify-trucking, cabs, farming, sales, military, self employment and so on.

Answer 7

oh yeah,

check out when Hawaii had to face the minimum wage laws

to their sugar plantation owners

Answer 8

Oh, really?



The lowest of the low are your biggest worry?

Answer 9

well i do now