Minimum Wage Raise - Page 2

sleepyjeff · 01-10-2007, 07:49 PM

Didn't the dems promise to help keep American jobs from leaving our shores....how does this help?

MouseWife · 01-10-2007, 08:01 PM

Quote:

Originally Posted by sleepyjeff

Didn't the dems promise to help keep American jobs from leaving our shores....how does this help?

I'm sure it will take time to make a dent in that problem....

Raising the wage around here is good, but, I can understand the problems you all are associating with it.

Still it isn't enough to make it. Most people I know at work have 2 or 3 jobs.

What is the answer? I hope this is a step towards it?

Morrigoon · 01-10-2007, 07:51 PM

Oh, there's more than that to it...

Unions, as you say, are filled usually with skilled workers who make more than minimum wage. But skilled workers are generally understood to be able to do the work of several unskilled workers. So there's a cost-benefit analysis that goes on for companies deciding whether they should go with a handful of skilled workers or a larger number of unskilled workers. When the cost of the unskilled goes up, it makes the skilled workers look like a better deal.

My concern is that the Fed already has a lot of inflationary concerns to deal with right now, and congress clearly doesn't give a ****. If Bernanke decides that the increase is going to lead to inflationary issues, he will have to raise interest rates to compensate, which at this point will plunge the economy into a full on recession. That's why the Fed has held still for the last several meetings. They don't want to lower rates because they're still concerned about and watching inflation, but they know if they raise rates even a little bit right now, it'll deal a disastrous blow to an already cooling market.

And on an unrelated side note... Disneyland's wages get even closer to minimum wage....

Isaac · 01-23-2007, 06:16 PM

Next year it's supposed to go up to $8 per hour.
So far between 1997 and 2007 minimum wage has gone up $2.
I'm undecided about it at the moment.

01-10-2007, 07:49 PM	#1
sleepyjeff Go Hawks Go! Join Date: Jan 2005 Location: Parkrose Posts: 2,632	Didn't the dems promise to help keep American jobs from leaving our shores....how does this help? __________________ River Guardian-less
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01-10-2007, 07:51 PM	#3
Morrigoon I throw stones at houses Join Date: Jan 2005 Location: Location: Location Posts: 9,534	Oh, there's more than that to it... Unions, as you say, are filled usually with skilled workers who make more than minimum wage. But skilled workers are generally understood to be able to do the work of several unskilled workers. So there's a cost-benefit analysis that goes on for companies deciding whether they should go with a handful of skilled workers or a larger number of unskilled workers. When the cost of the unskilled goes up, it makes the skilled workers look like a better deal. My concern is that the Fed already has a lot of inflationary concerns to deal with right now, and congress clearly doesn't give a ****. If Bernanke decides that the increase is going to lead to inflationary issues, he will have to raise interest rates to compensate, which at this point will plunge the economy into a full on recession. That's why the Fed has held still for the last several meetings. They don't want to lower rates because they're still concerned about and watching inflation, but they know if they raise rates even a little bit right now, it'll deal a disastrous blow to an already cooling market. And on an unrelated side note... Disneyland's wages get even closer to minimum wage.... __________________ http://bash.org/?top "It is useless for sheep to pass a resolution in favor of vegetarianism while wolves remain of a different opinion." -- William Randolph Inge
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01-23-2007, 06:16 PM	#4
Isaac the one n only Join Date: Jan 2005 Location: Anaheim Posts: 1,236	Next year it's supposed to go up to $8 per hour. So far between 1997 and 2007 minimum wage has gone up $2. I'm undecided about it at the moment. __________________
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