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reply to post by ketsuko
My opinion on the matter is that way over in Europe, economists ran the numbers and figured out how to solve the wage problem in the U.S. - but I don't think European translates well into American. I could see this being a fairly overbearing step by Obama - especially because $10.00 just seems high.
I honestly see all sides of who is posting on this thread - like Beezer just mentioned, this could be a pretty major step towards Obama being impeached.
I also think that there are some serious problems facing the poor and middle-class right now, as Vic is saying -edit on 28amTue, 28 Jan 2014 09:42:17 -0600kbamkAmerica/Chicago by darkbake because: (no reason given)
They want us dirt poor and dependent.
They will get more food stamps, raises in disability payments, utility bill payments, etc. to compensate for the price adjustments as the standards of living rise from the new minimum wage....and there will be more people receiving them. And to back that up with historical perspective.
We have to have livable wages for blue collar workers, those jobs in my opinion are what built this country.
But there is a larger problem of why are only minimum wage jobs available?
Well a minimum wage increase isn't going to expand growth.
Raising the minimum wage to $10.10 an hour by 2016 would increases wages by $35 billion, and the resulting increase in consumer spending would mean a GDP boost of $22.1 billion, which would support about 85,000 new jobs, according to an analysis by the Economic Policy Institute.
The Center for Economic and Policy Research found that raising the minimum wage has no "discernible impact" on employment, and in fact, concluded that wage increases are more likely to result in more jobs rather than less.
A Fiscal Policy Institute study on 18 states that currently have higher minimum wages than the federal floor, reached the same conclusion, noting: "The simplistic introductory economics prediction that an increase in the minimum wage will result in job loss clearly is not supported by the actual job growth record." The study found that these states not only enjoy higher small business job growth than states with the standard federal wage, the "indicators of economic performance [in these states] were consistently better."
For example, after California increased their minimum wage from $4.75 to $5.65 in 1996, the state saw over 1 million jobs created over the next five years. After the state of New York raised its minimum wage in 2004, total state employment increased 3 percent.
It's taking even more money out of an employers' pocket and trying to force them to do something else with it then they might have in mind.
It's also going to limit job growth by making existing employees that much more expensive, not even starting to talk about unions who negotiate their rates off minimum wage.
This will ultimately drive prices of everything upwards -- as corporations and companies will want to maintain the same profit margins.