Raise in Minimum Wage...More Layoffs?
By happyness3
@happyness3 (394)
United States
July 24, 2009 3:49pm CST
Do you think that with the raise of minimum wage, people will be experiencing layoffs to offset the cost? I know when we went through the last major minimum wage hike, we upped the prices of the products that we sold to offset the difference. And while we got a few consumer complaints, we continued to be a place where people were just happy they had a job!
2 people like this
4 responses
@spalladino (17891)
• United States
24 Jul 09
This question is raised every time the minimum wage goes up but I don't believe that alone would cause folks to lose their jobs. The minimum wage has not kept pace with inflation for a very long time. Since this group of workers struggles the most I think it's sad that scare tactics like job loss are used against them and that fairness doesn't seem to be part of the equation.
@kprofgames (3091)
• United States
25 Jul 09
There is one point I'm going to add here. The rise of minimum wage hurts small business owners because of the addtional funds and additional taxes that they let people go.
These small business is where local people rely on a job that is close to home saving them in travel time and often a flexible work schedule because it is a small based business.
The last wage hike did result in a local business here letting go everyone and family was brought in. Not only did those people loose their job, it also reduced the hours the business was open because of burn out.
Raising the minimum wage isn't the answer, it's maintain the cost of living expenses that is the answer.
@happyness3 (394)
• United States
24 Jul 09
I agree, I used to pay people minimum wage at my job, and I wondered how they even afforded to live. I know that I made a good salary, and I still struggled. Thank you for your comment spalladino!
@kprofgames (3091)
• United States
24 Jul 09
In all honesty, if the cost of living where maintained then the minimum wage wouldn't HAVE to change. Utilities are out of control, cost of food and what nots is way over priced.
Raising minimum wage only hurts the smaller companies because then they have to pay in more employee taxes. As a whole if the cost of our energy, gas, gasoline and food were to be maintained at a decent level, then people as a whole (and small businesses) wouldn't suffer the way they do.
@happyness3 (394)
• United States
24 Jul 09
Thank you for your comment! I agree. Where I used to live in Alaska, there was only one electric company, and they charged so much, you could hardly afford to have electricity. They even added on a fuel tax (for the cost of the gas in the truck to drive to peoples houses and check the meters), and it almost doubled my electric bill in the winter. I went from paying around $150 per month for my electric bill, to almost $300 with the added fuel tax. I don't know how people on minimum wage afforded it.
@CynergyDiva (805)
• Canada
8 Aug 09
This issue just came up in the form of a commentary on my local radio station yesterday. I think minimum wage is an insult, and I was so steaming mad I put it in my blog along with my rebuttal to the editor.
Here's the link if you want to read it: http://linkbee.com/minwage
@KrauseHome (36447)
• United States
26 Jul 09
Personally unless you live in areas where everything is cheaper, most people would have a hard time living off of minimum wage without assistance from somewhere else. Even when 2 people live together such as marriage, roommates, etc. it usually takes a decent amount to be able to survive without having to seek help from elsewhere. I think overall it should not make much of a difference to places unless the place was hurting Big time already as well.
@CynergyDiva (805)
• Canada
8 Aug 09
Just to follow up, I found an interesting article on this topic
http://www.dmiblog.com/archives/2006/04/minimum_wage_mythbusters.html
