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Ariel44 | What is the point of raising minimum wage when the price of stuff you buy goes up, it makes the raise useless? |
Govenor Arnold is doing this in CA and I dont understand Minimum wage goes up. EXample. you work at a grocery store minimum wage goes up, you have a little bit more money, prices of food goes up because of MW. You buy that food but it still like the cost when you less money. The raise doesnt make a difference. Whats th point of that? |
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tiff98444
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That is the point of raising the minimum wage. It goes up when the price of living goes up. Doesn't life suck! lol |
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northfulton39
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If minimum wage laws worked why wouldn't they just raise it to $30 per hour and end poverty as we know it?
Because as you point out - it doesn't make sense - it's purely a stunt by liberals to secure the votes of the uneducated working class who earn minimum wage and don't know any better. |
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Avatar
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because it makes liberals feel good. You have the most basic grasp of economics, and that's all you need. You are totally correct, raising minimum wage only raises the cost of living, and counteracting the intended effect. |
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Steve
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You are right. What came first, the chicken or the egg?
I believe in free markets. Let the markets decide on fair wages. If the grocery store can't get the quality of help that they are looking for at $6 per hour and this causes them to lose business to their competitors then they will have to pay $7 per hour. |
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Lee
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For a very short while you feel good and then prices go up to counteract the raise you just had and you're back to where you started pretty damn quick. What the state giveth with one hand, they taketh away with the other! fact of life!! |
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dr_adam_bricker
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If only the economy worked that simply. The minimum wage hasn't been raised much since the 1980s on the assumption that "a rising tide lifts all boats." The tide has risen, but many boats have been left to sink. Why? Because when rich people make more money, they don't spend enough of it to enrich others much. Take food, for example. When a CEO gets a $1,000,000 bonus, they don't suddenly start eating extra meals. They may buy higher priced stuff, but that helps different people enrich themselves, not everyone.
The minimum wage exists to prevent what happened during the 1800s, when "wage slavery" happened. Many workers were paid so little that they couldn't afford to lose their jobs, even for a few days. Knowing this, companies started introducing company stores, at which they sold people food and other living items. Soon the prices for these items got jacked, and employees were threatened with termination if they bought things somewhere else. It was a catch 22.
Henry Ford was the main proponent of the minimum wage... and the 8 hour work day (standard work days were 10 to 12 hours before Henry Ford... you want to go back to that, too?). His reasoning: 'my employees are probably my best potential customers, and if they can't afford to buy my product and don't have time to use it (advertise it), I'm shooting myself in the foot.' A lot of accountants don't look at these ephemeral benefits when calculating the bottom line, and just go for the crunched number. |
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Jonsey
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Think of it this way. Lets say that your gallon of milk costs you 4 dollars. Most of that cost is from the actual physical thing you are buying, and only 50 or 75 cents of that is the labor it took to get it to you. So even if they pay every min. wage worker double, the milk only goes up 50 or 75 cents. So the min. wage worker has twice as much money, but the milk now only costs $4.50.
Meanwhile, inflation continuously raises the cost of most products, regardless of whether or not the workers get paid more.
But I'm not sure you really wanted an answer. |
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inadaze
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You need to get a better and more marketable education, so you can have a better and more skilled job and still be in debt with higher denominations. This is a very difficult question in a high consumption society. You need to make your money work for you and live within your means. If this requires leaving California do it, but remember that inflation is creeping into every corner. |
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Jay
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The point in raising the minimum wage is to allow for the constant rate in which inflation occurs. The inflation amount is always increasing making the value of a dollar bill lower and lower. The minimum wage should increase as the inflation rate increases to compensate for the lowering value of the dollar bill. |
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Orlando57
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because we are in an artificial inflationary cycle cause by immense profit taking by energy companies and oil companies and any thing that is bought or sold is up because of those Greedy power hungry people who control the majority of the wealth |
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