San Fransisco raises minimum wag to $10.24 an hour. Please answer this question: A kid flips burgers for $7.25 an hour for a period of time and then has his pay raised to $10.25 an hour but the quality of his work does not improve. If the quality of his work stays the same but he is paid more money for it, does that stand to reason the money he is paid is worth less?
Here is my theory. Keep in mind that I am not an economist and I do not fully understand all of the causes of inflation:
MINIMUM WAGE RAISES DESTROYS THE VALUE OF THE DOLLAR AND A LESSER DOLLAR CREATES INFLATION. THIS WILL HURT JOBS AS EMPLOYERS WILL RISK USING LESS EMPLOYEES TO SAVE MONEY.
This, along with the Obamacare manditory insurance, is causing employers to struggle to keep employees. Why? Because a great number of employers are "small businesses" who cannot afford to pay a double digit minimum wage and pay for insurance programs. Nor can they afford the fine the government will charge them if they do not offer their employees insurance. In order to stay in business they are going to chance working harder with less employees so they save money, or rather break even.
There are so many things ruining this country. I won't get into all of them, but minimum wage is one thing. I agree with the need for a minimum wage but NOT for the wraise of minimum wage.
AMericans are not going to work for less than what they think their work is worth, we know that. They will go on strike, the unions will go crazy. So, the argument that employers would take advantage of employees by refusing to pay a god wage is worthless, to a certain degree, especially if there is a union. We can have a consistant minimum wage to keep companies from using employees for cheap labor, but don't raise it...unless inflation caused by sources OTHER than the raise of minimum wage requires it.
I don't go around looking for sorces of inflation so I don't know them all. However, the only one I know I have noticed is minimum wage increase.
A few years ago the minimum wage where I live was raised. That summer I noticed prices everywhere raise significantly. The public transportation prices more than DOUBLED (which I will let slide considering fuel prices), the bread I buy increased a few cents, the cereal I bought increased by 11 cents, and one day when I went to the movie theater , WHERE THEY PAY MINIMUM WAGE, I noticed a 50 CENT increase in ticket prices. I asked about it and the employee selling the ticket said, with what seemed like contempt, "Good old minimum wage."
So, it seemed the most significant raise in prices were at the companies that paid most of their employees minimum wage. This seems to back up my theory that employers will raise prices to compensate for the raises. I am not a CEO, but I bet that the corporate employees and the employers themselves do not see any changes to their incomes when minimum wage is raised.
The CEO's, Presidents, CFO's, etc of these companies simply raise prices to compensate so their profits are not affected. It is the little guy like you and me who are hurt by raise in minimum wage. We have to pay more for goods and services whenever it happens, but the big guys who control the prices simply raise them so they don't have to lose out on money.
Anyway. here are some links on some of my points:
http://dontletmestopyou.blogspot.com/2007/02/minimum-wage-and-inflation.html
http://www.oregonlive.com/hovde/index.ssf/2009/06/oregons_minimum_wage_law_adds.html
http://www.independent.org/newsroom/article.asp?id=1749
http://www.house.gov/jec/cost-gov/regs/minimum/50years.htm
Here is my theory. Keep in mind that I am not an economist and I do not fully understand all of the causes of inflation:
MINIMUM WAGE RAISES DESTROYS THE VALUE OF THE DOLLAR AND A LESSER DOLLAR CREATES INFLATION. THIS WILL HURT JOBS AS EMPLOYERS WILL RISK USING LESS EMPLOYEES TO SAVE MONEY.
This, along with the Obamacare manditory insurance, is causing employers to struggle to keep employees. Why? Because a great number of employers are "small businesses" who cannot afford to pay a double digit minimum wage and pay for insurance programs. Nor can they afford the fine the government will charge them if they do not offer their employees insurance. In order to stay in business they are going to chance working harder with less employees so they save money, or rather break even.
There are so many things ruining this country. I won't get into all of them, but minimum wage is one thing. I agree with the need for a minimum wage but NOT for the wraise of minimum wage.
AMericans are not going to work for less than what they think their work is worth, we know that. They will go on strike, the unions will go crazy. So, the argument that employers would take advantage of employees by refusing to pay a god wage is worthless, to a certain degree, especially if there is a union. We can have a consistant minimum wage to keep companies from using employees for cheap labor, but don't raise it...unless inflation caused by sources OTHER than the raise of minimum wage requires it.
I don't go around looking for sorces of inflation so I don't know them all. However, the only one I know I have noticed is minimum wage increase.
A few years ago the minimum wage where I live was raised. That summer I noticed prices everywhere raise significantly. The public transportation prices more than DOUBLED (which I will let slide considering fuel prices), the bread I buy increased a few cents, the cereal I bought increased by 11 cents, and one day when I went to the movie theater , WHERE THEY PAY MINIMUM WAGE, I noticed a 50 CENT increase in ticket prices. I asked about it and the employee selling the ticket said, with what seemed like contempt, "Good old minimum wage."
So, it seemed the most significant raise in prices were at the companies that paid most of their employees minimum wage. This seems to back up my theory that employers will raise prices to compensate for the raises. I am not a CEO, but I bet that the corporate employees and the employers themselves do not see any changes to their incomes when minimum wage is raised.
The CEO's, Presidents, CFO's, etc of these companies simply raise prices to compensate so their profits are not affected. It is the little guy like you and me who are hurt by raise in minimum wage. We have to pay more for goods and services whenever it happens, but the big guys who control the prices simply raise them so they don't have to lose out on money.
Anyway. here are some links on some of my points:
http://dontletmestopyou.blogspot.com/2007/02/minimum-wage-and-inflation.html
http://www.oregonlive.com/hovde/index.ssf/2009/06/oregons_minimum_wage_law_adds.html
http://www.independent.org/newsroom/article.asp?id=1749
http://www.house.gov/jec/cost-gov/regs/minimum/50years.htm
