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Latest users (4): byposted, jewishcommunazi, newbtwo, pebar, anonymous(13).
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#23752 - pebar ONLINE (02/15/2013) [-]
So....... Obama wants to change the national minimum wage to $9/hr. Technically he can't under the 10th but the federal can always threaten by cutting funding or whatever, but regardless... his idea: yay or nay, explain why

Uninformed wishful thinking? I think so. Business will cut their expenses, lay off low quality workers, and hire less. The high school students who need jobs to build a reputation won't get jobs because they'd go to better qualified workers.
User avatar #23801 to #23752 - Ruspanic (02/15/2013) [-]
It's a difficult question.
On the one hand, raising the minimum wage raises costs on businesses, causing them to compensate by laying off people or simply hiring fewer workers. This hurts low-skilled workers in particular because if you only contribute, say, $8/hr in revenue, a $9/hr minimum wage turns you into a liability, whereas with a $7/hr wage you were actually profitable.

On the other hand, it does seem like a good idea to link the minimum wage to cost of living. My city has a substantial homeless population, many of whom are actually employed but can't even afford the rent on a small apartment. That's a problem.
User avatar #23769 to #23752 - oxan (02/15/2013) [-]
And besides, companies still need to keep up their productivity. Increasing the minimum wage slightly doesn't mean that individuals are going to increase productivity enough to cover fired workers.

That, and the increase in the minimum wage is actually reflective of the increasing productivity of the last few decades, in which wages for workers have generally remained the same, while upper class income skyrockets.
User avatar #23767 to #23752 - oxan (02/15/2013) [-]
Wouldn't your minimum wage system be staggered? Australia's is. For those under 16, it's like AU$5 an hour, and about AU$15 for someone 20 or over.

Saying that, Australia has one of the lowest unemployment rates in the world, even with such a high minimum wage.

I welcome any move to improve the United State's labour laws, because, for a supposedly first world nation, they're shocking.
User avatar #23759 to #23752 - eight (02/15/2013) [-]
I don't know. This is a topic I have absolutely no clue about. This is a first for me.
#23758 to #23752 - repostsrepost (02/15/2013) [-]
Minumum wage causes more unemployment because those whose labor is worth less than 9/hour are pushed out of the work force. More overhead=less hires/more fires.
User avatar #23756 to #23752 - moser (02/15/2013) [-]
No for now. I agree that our minimum wage should be higher, but it would be better to increase it when our unemployment isn't just under 8% and our economy is booming. Doing it now would just slow our recovery.
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