SHTF July 24, 2009 - Minimum Wage Hike

[Jordan]

Minimum wage is set to be raised from $6.55 to $7.25 on July 24, 2009 and I really think this is when we see an economic SHTF scenario.

We're going to see millions of people getting a 10% raise without any increase in productivity and I truly believe this will be when the mass layoffs begin. Many retailers and large (low margin) businesses are going to be squeezed by the increase in minimum wage.

I'm thinking we could see as many as a million jobs lost in July as corporations get ready for the hike. I'd like to hear some comments on this.

 

[Bruno]

Aw, come on. Don't be so pessimisitic. I'm sure all those minimum wage earners are now going to work harder for their pay, increasing their productivity and help us get out of this recession.

 

[Hiki]

Milton Friedman - Minimum Wage

 

[danberkeley]

This will cause more unemployment.

 

[Arklatex]

Surely somebody will move to postpone the hike. Surely they aren't that dumb. Sure they are.

 

[rockjoa]

If only more would see the logic of this actually harming the people it is supposed to help, but the average person is being sold that it helps the poor. Not only will this cause less jobs but create a extra drag for businesses in a bad time.

Goodbye full time entry level jobs(snapped up by laid off upper level workers), hello part time jobs where 1 worker is doing the job that many used to do. I feel bad for all those coming out of college expecting a full time job but having to settle on a part time job or two just to scrape by and pay off loans.

 

[noxagol]

Minimum wage is actually counter-productive to over all wage increases over time.

Wages rise because of competition for labor. Wages lower because of competition for jobs. Anytime you put an artificial minimum you will cause a surplus. Putting an artificial minimum on the cost of labor causes a surplus of labor. A surplus of labor causes a lack of competition of labor which will keep wages depressed. If there were no minimum wage, there would be far less unemployment and therefore far more competition for labor which will lead to higher wages.

 

[jy006m]

you guys must hate poor people

 

[sevin]

This stuff pisses me off so much. Poor people making minimum wage bitch saying they want to get paid more, they want more help from the government, blah blah blah, and they're too stupid to realize they're shooting themselves in the feet.

 

[misterx]

Nah, the fast food joints will just increase the cost of a burger by a dime. I think the economy can weather it.

 

[torchbearer]

Nah, the fast food joints will just increase the cost of a burger by a dime. I think the economy can weather it.

I just saw a BK commercial where they are selling "Kyrstal"-sized mini-burgers.
They don't increase their menu price, they just keep cutting back on the quantity of food you get with each dollar.

 

[ItsTime]

I just saw a BK commercial where they are selling "Kyrstal"-sized mini-burgers.
They don't increase their menu price, they just keep cutting back on the quantity of food you get with each dollar.

yup. If you notice the amount of coffee in cans is now lower in some brands but the price has stayed the same. This trend can only last so long before inflation totally takes over.

 

[Chabsfromcanada]

I just saw a BK commercial where they are selling "Kyrstal"-sized mini-burgers.
They don't increase their menu price, they just keep cutting back on the quantity of food you get with each dollar.

Thats how it is done now.
Increased cost gets attention.
This is a discreet way to achieve the same goal.

And not all min. wage jobs are in fast food.
10% more in operating cost will choke alot of employers out.
Less jobs in the end.

 

[Zippyjuan]

A lot of states already have their own minmum wage which is at or above $7.25 an hour so it will not effect anybody living there. In 2007, 2.2% of workers received the US minimum wage or 0.56 % of the total population. http://www.getrichslowly.org/blog/2007/10/09/who-earns-the-minimum-wage/

The percent of people receiving minimum wage has been declining for decades now.

http://oregonstate.edu/instruct/anth484/minwage.html

 

[Vet_from_cali]

its all going as planned