House Dems propose raising minimum wage from $7.25/hr to $10

And indexing future increases to the Consumer Price Index.

More in The Nation.

(Meanwhile, in NY, Gov. Cuomo despairs of getting the state minimum waged hiked even from $7.50 to $8.50, despite polls showing 78% support for that.)

Debate points obvious:

  1. Is this a good idea? What economic impact would it have?

  2. Any breath of a chance of even getting it to a floor vote in a Pub-controlled House?

I’m all for a minimum wage hike…but this will never go through. Never, never, never. Boehner will strip naked and do a pole dance on the House Floor before this goes through.

To get the minimum wage up, you will have to go in smaller increments.

How many Democratic Congresscritters (other than those 18) will vote for it?

Well, the whole Progressive Caucus, I should hope; that’s 73 votes, but I guess with some overlap with those 18.

The problem I see is the fact that it will only serve to condense all jobs and make some look less valuable.

For instance, I worked part time at a store, where I made $10.25 an hour. That’s $2.00 more than the current Illinois minimum wage of $8.25.

No suppose they up the minimum wage to $10.00. That mens the people doing $8.25 an hour jobs, such as sweeping and cleaning will now make almost as much as the office people or check out people.

If that went in effect, when I had that job I would’ve said, “I don’t want to do the clerical stuff and deal with customer, I’d rather vacuum and sweep.” It actually is less bother.

While raising the minimum wage is good for the people making less, I can guarantee you they will not raise the wages of those making more than the new minimum so the proportion of pay between jobs grows less and less.

And that is not always good.

Yep, what AndyLee said. The minimum wage should be raised, but by small increments each year, not a huge chunk all at once. The chance of this going anywhere is nonexistent. It’s just a platform to use against the republicans come election time.
Mark

People are paid their marginal value to the enterprise. If someone’s marginal value is less than the minimum wage the government is effectively condemning them to unemployment. This will make it harder for the young and the poor to go to work. Since on the job training is a major way people acquire skills, this could damage alot of poor people for a long time. Given the current problems with unemployment this proposed hike is a bad idea at a terrible time. Luckily, the House will not pass it. It is good that there are a few people in government who understand the law of supply and demand.

As a business owner, I’d cut staff in response.

I’ll note that it won’t necessarily lead to lower employment. It’s certainly a possibility, but it’s not a priori a set conclusion.

Here’s one case (granted, 5 years ago) of what happened across the Washinton/Idaho border where there was a nearly $3 difference in minimum wages. The side with the higher minimum wage actually ended up doing better.

Of course, what would happen in a depressed economy is probably different as that case happened before the recession, but it’s not a slam dunk case that raising the minimum wage is always a bad thing.

And do less business? Why would you ever do such a thing? Or are you planning on your workers becoming more efficient?

Lackluster support from me. I have no problem with a high minimum wage but I think the federal minimum wage is not horrible right now, and many states should (and do) adjust it upwards accordingly. Looking at wikipedia, some cities even do (at least San Fransisco is listed at over $10/hr). As others have said, a scheduled increase is almost certainly better than a big jump like this.

Assuming the economy remains as is in my area, I’d have no choice. I would do the same amount of business, but schedule a bit tighter and do more work myself.

This is not a systematic study, it is a series of anecdotes. There are all sorts of confounding variables such as survivor bias. And that was in a relatively boom time for employment. Unemployment rates are currently 9.1% for Washington which has the high minimum wage and 7.7% for Idaho.
Here is an article that summarizes some of the scholarly work on the minimum wage and youth unemployment. http://online.wsj.com/article/SB10001424052970203440104574402820278669840.html

Not really. Business owners, like kayaker, will seek to reduce the number of employees and be reluctant to hire more people. What idiots like Jackson don’t get is that you’d be taking money out of the pockets of business owners, and they’re going to look for ways to keep their expenses where they are.

I agree with the rest of your analysis.

Clearly to have them making more money they would need to be worth more money, yes?
It never ceases to amaze me that people think that business owners will just foot the bill for these types of things.

If the people aren’t worth paying to do whatever job they have then they won’t have that job.

So a hypothetical employee may be worth eight bucks and hour polishing widgets but not $10.00? I presume another hypothetical fellow would be able to polish more widgets per hour and be worth the ten bucks.
:slight_smile:

So Jackson wants low income workers to “catch up” with inflation by increasing the rate of inflation.

What happens to the price of a burrito at Taco Bell when the minimum wage goes up Mr. Jackson?

I guess that’s okay since according to the government the inflation rate is very low right now.

  1. More political impact than economic.
  2. No chance.

Nope. You just use a reduced number of workers and find ways to either improve individual productivity or alter your business model. For me, an increased minimum wage would likely result in me working 40 hours a week instead of my current 30. I can, by increasing my own work week 10 hours, replace 2 1/2 minimum wage employees. :frowning:

kayaker-OR ypu could provide 33% more service/value to your customers.