The consequences of a high minimum wage?

[Phoenix '97]

The Winnipeg Free Press, 10/06/05.

Basically they want to set the minimum wage high enough such that a person working 40 hours a week will be above a certain "low income" threshold.

Well that's nice, putting everyone that has a job outside an artifical threshold. But what will be the consequences of this? The article claims increased costs for business of about 2%. That seems a little low to me. What will this move do to large stores and restaurants such as McDonald's, Tim Horton's and Wal-Mart that depend on people working for low wages? Longer lineups due to layoffs? Increased costs for your favourite Value Meal?

What about those people who are already earning more than $10.25? I doubt they'll get a similar raise in pay like the bottom end did. If prices do go up won't that just make them poorer as a result?

Note that $10.25 Cdn. is about $8.70 US at the time of this post.

[Zangmonkey]

The price for increasing the minimum wage is, above all, inflation.

[Nano]

Businesses will raise prices and lay people off to compensate. Thats already a pretty decent minimum wage, by american standards. here you're lucky to get 5.15.

[Tommy Chong]

There must be a lower class. Not everyone can be a "winner". Minumum wage doesn't allow slave labor while segmenting people, and giving us a lower class.

[Nano]

Originally Posted by Tommy Chong

There must be a lower class. Not everyone can be a "winner". Minumum wage doesn't allow slave labor while segmenting people, and giving us a lower class.

No one disagrees with that, i think. There have to be shit jobs, and people to do them. But shouldnt even a shit job be able to afford you basic expenses like a place to live? ( current minimum wage in the states will not afford you a place to live. )

[fatrat]

Originally Posted by Nano

No one disagrees with that, i think. There have to be shit jobs, and people to do them. But shouldnt even a shit job be able to afford you basic expenses like a place to live? ( current minimum wage in the states will not afford you a place to live. )

It's a nice idea in theory, but let me lay out the situation for you.

If you raise the minimum wage to $10 an hour, the guy making $11 needs a raise too. Why should he work there when he can get a much less stressful job riding a lawnmower for less than a 10% pay cut?

So now you have to raise the wages of everyone, and you are back to square one. It really does nothing short or long haul for the plight of the working poor here or anywhere.

It's a vicious cycle. You raise wages, the prices rise because the wages rose, then you raise wages again to compensate for that price raise, and so on and so on.

It would be nice if poverty could be wiped out by a magic wand, but it can't. Poverty will never disappear, it is just not possible. The only way you could do it is to make everyone equally poor and suffering. Is wiping out the wealth of 90% of the country so the 10% who are actually were poor before it happened not feel so bad about their plight really helping anyone?

[badfish116]

Originally Posted by fatrat

It's a nice idea in theory, but let me lay out the situation for you.

If you raise the minimum wage to $10 an hour, the guy making $11 needs a raise too. Why should he work there when he can get a much less stressful job riding a lawnmower for less than a 10% pay cut?

So now you have to raise the wages of everyone, and you are back to square one. It really does nothing short or long haul for the plight of the working poor here or anywhere.

It's a vicious cycle. You raise wages, the prices rise because the wages rose, then you raise wages again to compensate for that price raise, and so on and so on.

It would be nice if poverty could be wiped out by a magic wand, but it can't. Poverty will never disappear, it is just not possible. The only way you could do it is to make everyone equally poor and suffering. Is wiping out the wealth of 90% of the country so the 10% who are actually were poor before it happened not feel so bad about their plight really helping anyone?

you leave out inflation/cost of living rises

[daggerdragon]

to be fair, the minimum wage for the US is lower (in value) than it has been in quite a while..it really sucks. in my hometown the job market is so flooded you're lucky to get paid $6/hr for a summer job...i hardly have enough money for food here at school.

end result will most likely be a higher price for the consumer, but hey I'd gladly pay more if I knew the people who made whatever I was buying were treated well/paid well. (<--this is why i DO NOT shop at wal-mart)

[P3R3]

Originally Posted by Nano

Businesses will raise prices and lay people off to compensate. Thats already a pretty decent minimum wage, by american standards. here you're lucky to get 5.15.

You neglect this is CDN Dollars. I support a living wage, its discusting to allow corporations to force their employees below the poverty line.

[fatrat]

Originally Posted by Asazman

to be fair, the minimum wage for the US is lower (in value) than it has been in quite a while..it really sucks. in my hometown the job market is so flooded you're lucky to get paid $6/hr for a summer job...i hardly have enough money for food here at school.

end result will most likely be a higher price for the consumer, but hey I'd gladly pay more if I knew the people who made whatever I was buying were treated well/paid well. (<--this is why i DO NOT shop at wal-mart)

Then why don't you buy all your goods at Saks 5th Avenue? They get paid gobs of money for their jobs.

[badfish116]

Originally Posted by Asazman

to be fair, the minimum wage for the US is lower (in value) than it has been in quite a while..it really sucks. in my hometown the job market is so flooded you're lucky to get paid $6/hr for a summer job...i hardly have enough money for food here at school.

end result will most likely be a higher price for the consumer, but hey I'd gladly pay more if I knew the people who made whatever I was buying were treated well/paid well. (<--this is why i DO NOT shop at wal-mart)

just curious
do you try to support union labor, or do you just have it in for walmart

[isugoat]

Originally Posted by Nano

Businesses will raise prices and lay people off to compensate. Thats already a pretty decent minimum wage, by american standards. here you're lucky to get 5.15.

lucky to get 5.15?
only 6 states have no min wage laws, and of the other 44 states, only 2 are lower than 5.15. 16 have a higher rate and the rest are at 5.15.

[Nano]

Originally Posted by isugoat

lucky to get 5.15?
only 6 states have no min wage laws, and of the other 44 states, only 2 are lower than 5.15. 16 have a higher rate and the rest are at 5.15.

Yes, lucky to get 5.15.

[Nano]

Originally Posted by p3r3

You neglect this is CDN Dollars. I support a living wage, its discusting to allow corporations to force their employees below the poverty line.

No, i dont neglect that. 7.25 CAD id 6.17 USD. thats more than the US minimum wage.

[Geotpf]

In theory, higher unemployment and inflation.

In practice, who knows?

It sucks that many people have to struggle to make ends make working at a minimum wage job. The arguments that they are too dumb or lazy to get a better one so fuck them is a bit harsh, IMHO.