Minimum Wage Hike Affects Businesses, Workers

A federal government-mandated hike in the minimum wage will put some extra change in the pockets of workers. But employers, especially small business owners, worry about the added strain on their bottom lines. (July 24)

Category:

News & Politics

Tags:

• minimum
• wage
• hike
• affects
• businesses
• workers

[StorminNormin1977]

The reason you can't make ends meet at minimum wage is because your government is constantly stealing from you in stealth... its called monetary inflation. Raising minimum wage is not the answer!

[StorminNormin1977]

Minimum wage laws hurt low skilled workers to get a job.

[mirandaluc]

what rbbish. If his company cannot compete effectively in the global job market it is not because of a hike in the minimum wage!! I wonder how much he makes. I bet its over the minimum wage!1 So if he wants to save dollars, he should start by cutting his salary to a minimum wage salery!! bet he won't do that will he!!! If a bussness cannot compete, I suggest they revise their bussness model before opposing hikes in the minimum wgae!!

[1963danno]

@dbmasta Why is the unemployment rate still hovering at 9%???? There are many overqualified workers who can't even get a minimum wage job. Why would an employer hire an overqualified worker at minimum wage when they know they will go back to their higher wage rate when the economy improves???? No one offers "competitive wages" at this time, although that may change in the future with an improving economy.

[dbmasta]

@1963danno "If all the businesses are offering the same low wage then it will force them to accept the job." You're assuming there's an infinite supply of workers who can't find alternative means of providing for themselves. Labor is a scarce resource like anything else. When it's in short supply, employers have to offer competitive wages to get the worker to choose them over another employer. Thus, a market clearing wage emerges (as w/all other resources), not slavery/exploitation.

[1963danno]

@dbmasta Hence the minimum wage. Anyone willing to show up for a job no matter how unskilled and menial is worth at least minimum and then the employer can decide if they are worth more

[1963danno]

@dbmasta If all the businesses are offering the same low wage then it will force them to accept the job. Most companies can probably pay much more than they do but choose not to

[dbmasta]

@1963danno "Why not pay people 10 cents an hour..." You're forgetting that the price of labor (wage) has to be high enough to attract someone to apply for the job. No business that needs labor to exist will offer pay so low that it's not worthwhile for the worker to show up. By your reasoning, a company could charge as much as it wanted for a product and expect people to still pay for it. Consumers would look for cheaper substitutes, just as workers would look for better paying jobs.

[1963danno]

Anyone who is in business and can't afford to pay people $7.25 per hour should not be in business. Why not pay people 10 cents an hour, or how about everyone does an internship for free till they are trained then the employer can terminate them and get someone else for free,Wouldn't that be awesome. It would also swell the tax rolls.

[dbmasta]

@hellfirewrestling98 If you understood anything he was talking about, you'd realize what he supports is the complete opposite of slavery. Requiring permission from government to engage in trade is a total assault on freedom. I would argue that slavery is the opposite of freedom. If you prefer government control over your life, then you are the one who is voluntarily accepting slavery, not Williams.