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cokezero100 | Do minimum wage laws actually help the poor? |
Which businesses get hurt the most,which ines benifit if they do?
Additional Details
does it actually cause eroded earning power due to increased inflation or just nothing happens to prices.Why do the small businesses complain so much about it,but not the so-called' big box' stores as much? |
 |
 
enoriverbend
 |
Minimum wage laws would hurt the poor, by reducing employment or employment growth, if in fact it did anything at all.
The reason I phrase it that way is that in the U.S., the minimum wage rate increases have normally trailed the true market wage rate increases, so that the "MINIMUM WAGE RAISED" headlines really mean nothing -- except that certain politicians get to claim success. This is also the main reason that some studies have shown that it doesn't cause job loss -- because it's set so low it doesn't do anything at all, at least nothing that is above the 'noise level' of day-to-day economic activity.
BUT whenever we do raise the minimum wage rate above the 'natural' market wage floor, then it has three main effects:
- the people that have a minimum wage job and keep it will have more money -- but most of them would have gotten a raise eventually anyway
- some of those people will instead lose their jobs
- other people that would have gotten hired won't
So you can see in that circumstance, some people feel like they have been helped, and others don't. The last case (people that would have gotten hired won't be hired) is the least visible one, and economically-illiterate politicians like to ignore that group. |
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Peaches
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The folks to not get it; there will always be a poverty line because people dont all make the same amount; those in the bottom percentage will be below the poverty line, whatever that income actually is.
Minimum wage, increases salaries, but it also increases costs. I mean, at a fastfood place, to pay its people more, they will increase prices. Now that things are more expensive the increased wage will really just subsidie the price increase.
The truth is, wages and prices are at an equlibrium, they tend to move together... and supply and demand are great features that help to move wages. Artificial increases such as increases is minimum wage tend to have a very limited effect, as described above. |
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Mr. Knowitall
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In the US we have a measure we call the 'poverty line'. People who earn less than this 'magic number' are considered 'poor'. This number hasn't been adjusted for inflation in a long time, so more people than that could really be considered 'poor' today.
Now the fact is that 90% of the people who are poor in the US have full-time jobs. They work as hard as you or me (probably harder than me) but they are still struggling. Don't you think that's a scandal in the richest country on earth, that so many people are poor, not because they're disabled or make bad choices or are just lazy, but even though they work hard?
The idea of democracy is the greatest good for the greatest number of people. If 100 people get super-rich and everyone else gets poorer, that's not how our system is supposed to work. Everyone is supposed to share in the good economy, at least to some extent. This is why we choose capitalism as our economic system--because it's good for EVERYONE, not just the capitalists themselves. The rising tide that raises all boats alike, and all that.
Now as to your question, there is no evidence that minimum wage laws cause unemployment. Looking back, history doesn't show that rises in the minimum wage cause rises in unemployment or hurt the economy. Raising the min. wage stimulates the economy because people have more money to spend. And the govt. does better too because the taxes on wages are higher than the taxes corporations pay. |
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jade!
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Well it really depends on where you are, and how much the minimum wage is. I heard that some states are starting the minimum wage at $7.50... That I think would most def. help the poor, compared to my state, which the minimum wage is $5.15. The expense of living now adays is going up, so it just really depends. It has its plus's and negative's. |
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Lawrence R
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Minimum wage laws can end up damaging the poor just as much as the businesses that it hurts. When minimum wage goes up businesses demand less labor because it is less profitable for them to do so. It can even cause entire factories to be moved to other countries to avoid the changing labor rates. Of course the people who keep their jobs are better off but the general consensus is that minimum wage laws are damaging to workers and businesses alike |
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DevilsAdvocate
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Minimum wage laws help everyone. While businesses will claim that minimum wage laws hurt them, in truth higher wages are also better for business. Every business needs customers, and when people are making decent wages, they can afford to buy the products that businesses offer. Put more money into the hands of consumers, and they'll spend more, which makes the economy stronger. That's basic Reaganomics! |
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