Minimum Wage Raise

Alex · 01-10-2007, 06:01 PM

I'm opposed to a minimum wage in general but that is an argument lost almost 80 years ago.

If it is going to exist then the current process of raising it and then letting it stagnate for years and then raising it again makes no sense. They should build in a standard periodic COLA of some sort so that businesses and people can plan accordingly.

Not many people make minimum wage but those that do would get a 36% raise. But that is also more than a 36% raise in payroll costs which for small businesses with lots of minimum wage labor can be a major blow.

So I'd rather it just lag inflation by a year (to allow for the adjustments that generally follow initial release of the numbers). That would give employers a year to plan, employees more information to make decisions.

However, this big huge jump is also going to create a spike in the black-market labor market.

01-10-2007, 06:01 PM	#3
Alex . Join Date: Feb 2005 Posts: 13,354	I'm opposed to a minimum wage in general but that is an argument lost almost 80 years ago. If it is going to exist then the current process of raising it and then letting it stagnate for years and then raising it again makes no sense. They should build in a standard periodic COLA of some sort so that businesses and people can plan accordingly. Not many people make minimum wage but those that do would get a 36% raise. But that is also more than a 36% raise in payroll costs which for small businesses with lots of minimum wage labor can be a major blow. So I'd rather it just lag inflation by a year (to allow for the adjustments that generally follow initial release of the numbers). That would give employers a year to plan, employees more information to make decisions. However, this big huge jump is also going to create a spike in the black-market labor market.
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