Mitt Romney Mitt Romney: Minimum Wage Should Rise With Inflation

[archangel689]

it's soo bad another hidden tax!



"Like inflation, an increase in the minimum wage is a stealthy tax increase as well. It provides in billions in new revenue for the president and Congress to play with, while allowing them to forecast smaller deficits.*

Let's see how this works. Congress increased the minimum wage from $4.25 to $4.75 and then to $5.15. If workers keep their jobs, and most will, millions of people get a pay raise. It amounts to an additional $20 per week before taxes. But they also pay more in taxes of all kinds. Government at all levels takes between 25% to 35% of this wage increase in taxes. The Feds devour more than 80% of that.*

In the end, workers who have had their wages increased by law may take home as little as $2 more per day after taxes. But that's just the first round. If workers spend the money, they pay sales and excise taxes. If they save and earn interest, they pay more income taxes. If they pay property and capital gains tax, they pay even more taxes.*"

http://mises.org/freemarket_detail.aspx?control=157

 

[spudea]

Oh hes right! More government contol over the economy will solve our problems!

Thanks Obama

 

[thoughtomator]

Wow, really? This is crazy... That means that in 5 years, the minimum wage could be $100 an hour!

Not with the way our government calculates inflation

Social Security recipients got no cost of living adjustment (indexed to inflation) at all.

The CPI is one of the most heinously manipulated statistics the gov puts out, and that's saying something given how laughable some others are (e.g. unemployment rate)

 

[Travlyr]

I have to agree with Mitt Romney here.

The Austrians are wrong on the minimum wage controversy.

The Austrians are trying to apply sound monetary principles to an unsound monetary system. A sound monetary system is defined by a virtual limited supply of money. The unsound system is defined by an infinite supply of money.

Since we participate in an unsound system of unlimited money supply which is controlled by a group of privileged Ivy League elite, then if they say to raise the minimum wage, raise it. They control the markets no matter what the level of their intelligence or ability to get it right. The minimum wage should be at least $25 -> $30 per hour already, at least.

When the monetary system is based on sound commodities of free floating competing currencies, then free-market competition would set the wages. Then minimum wage laws would be ridiculous, but that is not what we enjoy today.

So I say, "Raise Wages to the Moon!" Make those $millionaires, $billionaires, and $trillionaires squirm when they write that check.

 

[jsem]

Isn't it so that like 90% of people favor minimum wage laws?

Ron Paul needs to go into professor mode.

 

[Dr.3D]

That would kill the whole purpose of inflation. Mitt will retract this after his banker friends talk to him. You just watch.

Oh, I thought inflation was to steal money from the elderly folks who are on a fixed income.

 

[Working Poor]

Wow, really? This is crazy... That means that in 5 years, the minimum wage could be $100 an hour!

And a loaf of bread will be $200

 

[erowe1]

Romney knows better.

I doubt that.

 

[SeekingFreedom]

Even classical economics says minimum wage and price fixing is bad. But, it's pointless to argue this with a layperson who doesn't have a strong economics understanding. The moderates and liberals will paint us free-market advocates as heartless/out-of-touch/fringe. It took me some time for me to realize how minimum wage hurts more than it helps while studying economics in college. Logically it's understandable (emotionally difficult for many), but it takes a long conversation and we need more soundbites that appeal to the people that are still not awake.

 

[rambone]

Mitt Romney thinks that Minimum Wage should rise with inflation

Raising minimum wage makes EVERYTHING more expensive.

And the reality is that inflation WILL continue to happen at a faster and faster pace.

Romney will be sure that the cost of living accelerates even faster.


Mitt Romney: Minimum Wage Should Rise With Inflation

 

[Inny Binny]

The problem with the minimum wage isn't that it tries to increase wages. I'd love to see much higher wages. The problem is it applies a rule across the entire economy, propping up the companies that have greater wages already (which funnily enough tend to be the bigger ones) and giving them more power over the market. It also prices the poorest out of a job.

We shouldn't be going around saying that's it's all fine and dandy if corporations hire people for $5 an hour - it isn't. But we should always say that if the choice is between unemployment and a low wage, we should always let the individual choose rather than pretending we know better.

 

[_b_]

Well, Mitt did say he likes to fire people...


In order to be hired and keep a job a worker must produce more than he consumes (wages). If production and wages are equal, then hiring or firing the worker would be a net neutral to the employer, so they would have no reason to hire the worker in the first place (and the risk associated with hiring). If the worker produces less than his wages, he is then hurting the company more than helping it, so the employer would have reason to fire or not hire in the first place.

By raising the minimum wage, anyone wanting a job will need to produce more in order to obtain and keep a job. For people with little skill and experience this means getting a job will be much more difficult or not possible since their work will become less valuable compared to their required compensation. The net impact of raising minimum wage would be higher unemployment, granted those that do keep a minimum wage job will make more and be smaller in number.

Walter Block explains that minimum wages are not a floor propping everyone up, but a hurdle than everyone must jump over in order to be employed.

 

[rambone]

We shouldn't be going around saying that's it's all fine and dandy if corporations hire people for $5 an hour - it isn't.

Some jobs are worth $3/hour.
Some jobs are worth $30/hour.
Some jobs are worth $300/hour.

Its not up to the government to decide.

If somebody willingly agrees to do a job, for an agreed upon wage, they have made an voluntary agreement. If the employee doesn't like it, he can leave and go work for a competing company. Good employees are hard to come by, and companies who plan on keeping their quality workers will have to offer them a decent wage. Competition will drive wages and quality up, while striving for lower prices for the consumer. The Free Market will decide.

 

[Cutlerzzz]

We shouldn't be going around saying that's it's all fine and dandy if corporations hire people for $5 an hour - it isn't. But we should always say that if the choice is between unemployment and a low wage, we should always let the individual choose rather than pretending we know better.

That's a huge contradiction.

 

[dt_]

lol the way he answers that question.. so robotic sounding. He doesn't even look the person in the eye when he answers. Kind of rude :/

 

[Greg Buchanan]

As long as illegal, 2nd, and 3rd world immigration is encouraged by the establishment, wages for low end jobs will remain artificially low.

 

[InTradePro]

I think Romney is correct on this.

You set it at a level below the market rate and then increase it(not inflation but other indicator) below the market rate. It reduces some employers exploiting employees. It helps a little in situation where for whatever reason people cannot change jobs. Think of people with no skills or people in rural areas with no alternatives.

 

[The Free Hornet]

I think Romney is correct on this.

You set it at a level below the market rate and then increase it(not inflation but other indicator) below the market rate. It reduces some employers exploiting employees. It helps a little in situation where for whatever reason people cannot change jobs. Think of people with no skills or people in rural areas with no alternatives.

You don't know what market rate is. YOU DO NOT KNOW WHAT THE MARKET RATE IS! If you are unproven with little education and no experience, your market rate may be $2/hr (even in the context of today's $8/hr minimum wage). The minimum wage arose because of people willing to cut low skilled or unproven workers off the economic ladder of prosperity to fall onto the "safety net".

There are exceptions. I.e., to set sound wage levels you have to fill out more paperwork and jump through loopholes. These lucky people are blessed enough to work for below minimum wage:

Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.
http://www.dol.gov/elaws/faq/esa/flsa/001.htm

 

[Travlyr]

Yeah, Mitt Romney is right on this. If we were using sound monetary policy he would be absolutely wrong, but there is an unlimited supply of fiat money. They can print however much they need. Need a quadrillion, quintillion, sextillion, or septillion or more... whatever. If everyone's wages kept pace with inflation, then minimum wage would be at $30 or $40 already and average wage would be in the $200 -> $300 per hour range.

 

[Cutlerzzz]

The Austrians are wrong on the minimum wage controversy.

The Austrians are trying to apply sound monetary principles to an unsound monetary system. A sound monetary system is defined by a virtual limited supply of money. The unsound system is defined by an infinite supply of money.

Since we participate in an unsound system of unlimited money supply which is controlled by a group of privileged Ivy League elite, then if they say to raise the minimum wage, raise it. They control the markets no matter what the level of their intelligence or ability to get it right. The minimum wage should be at least $25 -> $30 per hour already, at least.

When the monetary system is based on sound commodities of free floating competing currencies, then free-market competition would set the wages. Then minimum wage laws would be ridiculous, but that is not what we enjoy today.

So I say, "Raise Wages to the Moon!" Make those $millionaires, $billionaires, and $trillionaires squirm when they write that check.

Care to explain how a fiat money system can change a supply curve?