Friday, November 24, 2006

The dangers of raising the minimum wage

Okay, get this, the average annual income of a person on minimum wage is: $45,000 per year.

What?

But soon to be Democratic Speaker of the House Nancy Pelosi argues that people can't live on the minimum wage. The current minimum wage forces people to live in poverty, to go hungry, and to exist with horrid living standards.

The current federal minimum wage is $5.15 per hour. Working normal hours, that would yield about $206 per week, or $10,712 per year. Federal agencies define poverty as annual earnings of $9,827 or less for a single person. The mathematics of the above reveals that even with minimum full-time hours the federal minimum wage keeps a single worker out of poverty.

And on top of that, more than half of the minimum-wage earners out there work in restaurants and bars, receiving tips, and making more than enough to make living life possible. In fact, these fine people bring in over $45,000 per year on average.

And by raising the minimum wage we damage our economy. Smaller businesses forced to pay higher minimum wages will face the possibility of going out of business, or lay off employees, or do as the larger businesses will do and raise prices to cover for the increased cost of labor. Listen carefully: raising the minimum wage, then, will cause a combination of killing businesses (creating a higher unemployment rate), the lay-off of workers (resulting in a higher unemployment rate), and raised production costs which will in turn raise the prices of items, thus further weakening the strength of the U.S. Dollar (hence, causing inflation).

Oh, by the way, Nancy Pelosi has said that her first order of business is going to be increasing the minimum wage.

Just more proof of the idiocy of the left, if you ask me.

13 comments:

Anonymous said...

I've been hearing rightwingers go off their rockers about the dangers of raising the min wage since I had my first job at 14 (aprox 150,000 years ago.)

Needless to say, none of the dire predictions ever came to pass.

Anonymous said...

Raise minimum wages and it gives the unions the right to demand more. I understand that many unions have their wage structures tied in with the minimum wage. Hmmm. And the Dems love the unions...

Every time there is a raise in the minimum wages many people getting paid more than minimum wage find they're closer to the bottom and do not get increases themselves...


For those that do get increases commensurate with the increase:
Lets see. McD's pays more to it's workers. Raises the cost of their burgers.
Hardware store pays more to it's workers. Raises the cost of their hardware.
Grocery Store pays more to it's workers. Raises the cost of their groceries.
Beauty salon pays more to it's workers. Raises the cost of their beauticians.
Bar & Grill pays more to it's workers. Raises the cost of their food and drink.
Gas station pays more to it's workers. Raises the cost of their gas and goods.

Worker who get his wages raised pays more for the burger, etc. so his raise counts for nothing.

BUT To show Republicans REALLY DO CARE we should demand they offer more than the Democrats offer. What ever Polosi suggests why stop there? Lets have Republicans in Congress demand every employer pays every employee a million dollars a week so everyone can be rich. Just like Pelosi and her friends...

David Odeen said...

I think they should just raise it to 50 dollars per hour....Lets just raise all the prices on Goods and services, right Mudkitty

Tell me, just liekeducation spending, when is enough enough? And when does the market get to dictate the prices people pay for saleries, again democrats should know!!

David Odeen said...

I see they did not spend enough on me...OUCH

Anonymous said...

Unions have the right to demand what ever they want, it doesn't mean they're going to get it...and slippery slope arguments are really deflectious red herrings.

And this whole country was a Union, before Bush came along as the divider, not the uniter.

Henny Penny, the sky is falling!

Raising the minimum wage helps the middle/lower classes pay for the goods and services they need, so it helps the economy...

Giving a million dollars to everybody has nothing to do with the min wage, and is just a crazy notion, below even a spurious argument. You might as well say
"why not put glitter on the moon?" That's about as much sense as you guys are making.

Heck, remember when Walmart made their name on stuff made only in America, and then they pulled a bait and switch. Now all their stuff comes from Communist China. Eveytime you buy cheap at Walmart, you're donating money to a communist country, you big sillys!

I'd pay more for goods and services made and supplied in this country - our great Nation. I'd hate to see us lose this great Nation because people are cheap and greedy, but with attitudes like yours, it doesn't give me much hope.

No business, large or small, ever went under because the min wage was rasied. Look it up.

Gunny John said...

No, they won't go under dudkitty. Nobody here has said that, have they? Merely that it could create that possibility, much like increasing the price of anything that employers must pay for. Nifty little attempt to change the direction of the discussion...nothing new there.

Businesses will simply charge more for their goods and services, thus, the minumum wage increase will be of no real benefit, and simply harm those that are currently paid above minimum wage.

The original post doesn't even claim the impending death throes of America that you claim it does dudkitty. Get a grip.

Anonymous said...

So you're saying it's a wash? Then what are you upset about?

And how 'bout all our consumer money going to Communist China? I'd rather pay more, and see our dollars stay in this country.

Douglas V. Gibbs said...

I agree mudkitty, but don't forget that it was Clinton that sold us out to China.

Anonymous said...

When you can't buy products for a reasonable price in the US, you have to go to countries that don't have the unions pricing them out of existence. It's a nasty cycle.

Anonymous said...

Actually, it was Nixon. And then Reagan, and Bush...and then the Republican Congress passed Nafta with Clinton's support.

I supported Nafta because I supported the "idea" of free trade. Boy was I wrong.

Douglas V. Gibbs said...

I was against Nafta from the get-go. One of only a few things I have ever disagreed with Rush Limbaugh over. Hmmm, you said you supported it and you were wrong. See? If you would listen to folks like me in the first place, you wouldn't be wrong like you were about Nafta.

Anonymous said...

I conceed on the Nafta issue...

Unknown said...

Wow, this mudkitty chick obviously has never had ANY education in economics or financial planning. Practically everything she states is opposite to reality. To raise minimum wage is the most ignorant suggestion EVER! Raising minimum wage is a guaranteed method to destroy America and its economy! That essentially is a band-aid to assist the 4% of American's earning minimum wage - while at the same time substantially affecting the discretionary income of 100% of Americans!! People won't be able to spend as much - because the price of goods and services will increase. Businesses won't be able to afford as many employees at these establishments - since labor costs are planned at a fairly fixed rate. Therefore many employees will lose jobs. By increasing the costs of goods and services, this will further drive more citizens into poverty level. Look at what happened in the European countries that have higher minimum wages. Almost all of the European countries are on the brink of bankruptcy. Due to the higher salaries and increased regulations, manufacturing and advanced manufacturing jobs are fleeing the European economy.