Minimum Wage?

[double moo]

Thought I'd throw out this thread topic and see how the forum feels about the Minimum Wage discussions raging around the country. I know that we have a few business owners here - what's your take?

One side has have on ad naseum about whether it hurts mor than it helps - hurts small businesses, hurts the public because the busineesses will charge more to cover the nut, hurts the new employee/teenager work force, etc...

The other continues to pound the right of everyone who works full time to make enough to survive, how the increases is so small it won't affect much of the economy, etc...

Though both sides can make good arguments, what no one is talking about is the taxes that will be generated via this little gem. Acknowledging that folks making min wage will not be paying any taxes anyway the point gets overlooked thaat the gov't will score. The employer match here in Utah is 15% of the total wage (or at least it was!). The employee never sees it. If the wages are increased as is being discussed to $10.25/ hr - an increase of $3/hr - that's $0.45/hr goign straight to the gov't. Recent studies used by the folks in the know say that approximately 3.6 mmillion people work for min wage or less. Allowing that not all min jobs are full time - let's use half - factoring 30 hrs/week by those 3.6m folks... and the gov't take is over $2.5 billion a year. So are they really that concerned with the little guy... or just another way to stab those greedy business for some tax revenue?

[Iceaxe]

As a business owner I can tell you that raising employee minimum wage would have almost zero effect on my bottom line. If you want to help the small business owner get the government's hands out of our pockets.




Tap'n on my Galaxy G3

[oldno7]

This will in no way affect my business either.

Everyone I hire STARTS at more than double the current level and goes up from there.

I pay from $17-45hr for skilled workers.(with a smile)


If anyone thinks that the cost of goods that are handled by minimum wage earners, won't be going up, is a fool....

If anyone thinks that business' affected by a proposed increase, will not begin weeding out all but the best workers, doesn't understand economics.

So the cliff notes version:

Higher minimum wage

Higher inflation

Higher unemployement

[Scott P]

I think one thing that should be remembered is that minimum wage jobs really aren't meant to be a career or meant to permanently raise a family on.

I think that some adjustment for inflation is warranted, but not the huge increase.

Though both sides can make good arguments, what no one is talking about is the taxes that will be generated via this little gem. Acknowledging that folks making min wage will not be paying any taxes anyway the point gets overlooked thaat the gov't will score. The employer match here in Utah is 15% of the total wage (or at least it was!). The employee never sees it. If the wages are increased as is being discussed to $10.25/ hr - an increase of $3/hr - that's $0.45/hr goign straight to the gov't. Recent studies used by the folks in the know say that approximately 3.6 mmillion people work for min wage or less. Allowing that not all min jobs are full time - let's use half - factoring 30 hrs/week by those 3.6m folks... and the gov't take is over $2.5 billion a year.

It's not going to increase government revenue that much since companies will either make less profit (thus less tax revenue) or they will raise prices and drive up inflation (which also doesn't create more actual revenue). I don't think the motive is to simply to increase government revenue.

[ratagonia]

I think one thing that should be remembered is that minimum wage jobs really aren't meant to be a career or meant to permanently raise a family on.

I think that some adjustment for inflation is warranted, but not the huge increase.

"minimum wage jobs really aren't meant"

I'm not sure who it is that decided that xxx 'meant' - but the way it has sorted out, there are a lot of people down there at the bottom of the wage scale, who live all sorts of lives.

Tom

[PG Rob]

If anyone thinks that the cost of goods that are handled by minimum wage earners, won't be going up, is a fool....

If anyone thinks that business' affected by a proposed increase, will not begin weeding out all but the best workers, doesn't understand economics.

So the cliff notes version:

Higher minimum wage

Higher inflation

Higher unemployement

Agree
Agree
Agree

Let me preface this by saying any increase in minimum wage will not affect my businesses or employees.
My personal viewpoint is that the minimum wage should be abolished. It tends to reward the lazy minimum wage earner and penalize the hard working minimum wage earner. We should allow each person (as well as the market) to determine their value. It would be even better if it was based on something other than "hours worked" such as performance, quantity of work completed, quality of work completed, commission, etc... Negotiating value is how commerce is transacted.

When gas stations agree with each other to not charge less than a certain amount, it is called price fixing, considered immoral and is illegal, but when the government does it with wages, it is considered necessary and moral... Interesting

[Scott P]

"minimum wage jobs really aren't meant"

I'm not sure who it is that decided that xxx 'meant' - but the way it has sorted out, there are a lot of people down there at the bottom of the wage scale, who live all sorts of lives.

Most of us have been at or near minimum wage sometime in their life. My wife still works fairly close to minimum wage.

Employers themselves don't expect that most of their employees are going to make a career out of minimum wage entry level jobs forever. My wife used to manage a fast food restaurant and her sister and my brother in law still does and when they hire someone, usually they aren't expected to work at minimum wage forever. Minimum wage employers usually don't advertise their entry-level job openings as being meant to be used in that manner.

My brother (age 35) also still works for a low wage and probably will permanently (through no fault of his own). I still don't think it's a good idea that he should try to raise a family on it though. If you are single or married without children, it is very easy to live on minimum wage (many of us have been there, done that). It's not so easy if you have children.

It is not my brother's fault that he works for a low wage. He cannot read due to a learning disability. That is not his choice. It is his choice however, whether or not he tries to raise a family. I think he has made the right choice by not doing so.

On the flip side, my sister works for a low wage and her husband doesn't work. They have five kids, four of them that were conceived while they were unemployed or minimally employed. Anyone can say that it's none of my business, but I don't think it was a wise decision.

In my own opinion, a big part of raising a family is providing for them. For the sake of the children, I don't think it's a good idea to have children and expect someone else to support or raise them.

On the other hand, I don't think a child should be blamed or punished for being born, so they are entitled to things like a good education, food etc. That's why I have spent quite a bit on charities trying to help children in various ways and will always support laws concerning education funding, etc.