Huzzah! Minimum Wage Increase Shot Down in Senate

Huzzah! Minimum Wage Increase Shot Down in Senate

y is this a good thing? i could use that... i actually need a job.. :sad
 
fishbait912 said:
y is this a good thing? i could use that... i actually need a job.. :sad
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Imagine, if you will, everything you now buy costing you more because prices went up to cover the cost of paying low wage workers 2 more dollars per hour. Raising minimum wage NEVER and I repeat NEVER puts money into the pockets of those who need it most (presumably the ones ho earn minimu wage) because the cost of everything they have to have from food, clothing, gas, EVERYTHING goes up right in line with the price of minimum wage.

Also, it just helps keep jobs in America when minimum wage stays lower. We lose enough unskilled labor jobs to China, Mexico, Taiwan, etc. etc ad naseum. So, my job-seeking friend, rest assured, this is good news for you and not bad!
 
At its most basic, price floors create a surplus, in this case a surplus of workers. Instead of the maybe 2 or 3 people who want the job at $5.00 an hour, 10-15 might want it at $7.00 an hour, and therefor create unemployment.

Sociologists will tell you that when such competition occurs, it is not those who need it who benefit, it is the middle to upper class kids that will obtain these jobs in more cases than not. Generally, these are not the people the minimum wage laws are intended to help, and those who it does intend to help, those trying to survive off of a low paying job are far more likely to be let go.

If you want to get more into it, you can graph out minimum wage, and you will find that you can calculate the losses and benefits to both the supply (labor) and demand (businesses). Assuming the calculation is done correctly, the losses will always exceed the benefits. Such a loss is called a deadweight loss. Its essentially a loss in efficiency.
 
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Sounds like slipknottin takes economics. I remember price floor from economics 101 ;-)

Just reemmber that anything goes to congress is not very simple at all. I'm sure there was more to the bill than just a minimum wage increase. Several things are all voted on at once. It could be that the minimum wage increase was just a rider to something larger or there were a few unpopular riders. They usuauly put riders, or simple things that couldn't be a bill on their own all in one and vote on it.

It is very lilkely that this could be voted on again if it was a rider. If it was the main issue, then there is always next year (for those who want it passed).

Also, its not unexpected for there to be a little friction in congress since the election was so close. Sometimes the seemingly minute details can cause a bill to fail.
 
jonathan03 said:
Sounds like slipknottin takes economics. I remember price floor from economics 101 ;-)

Just reemmber that anything goes to congress is not very simple at all. I'm sure there was more to the bill than just a minimum wage increase. Several things are all voted on at once. It could be that the minimum wage increase was just a rider to something larger or there were a few unpopular riders. They usuauly put riders, or simple things that couldn't be a bill on their own all in one and vote on it.

It is very lilkely that this could be voted on again if it was a rider. If it was the main issue, then there is always next year (for those who want it passed).

Also, its not unexpected for there to be a little friction in congress since the election was so close. Sometimes the seemingly minute details can cause a bill to fail.
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Well, the Republican compromise of $1.10 increase was also voted down. No biggie.
 
slipknottin said:
At its most basic, price floors create a surplus, in this case a surplus of workers. Instead of the maybe 2 or 3 people who want the job at $5.00 an hour, 10-15 might want it at $7.00 an hour, and therefor create unemployment.
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I agree with you, but I don't understand the reasoning presented here. I don't so much agree that more people wanting a job for a higher wage would increase unemployment, since for them to want the minimum wage job they would have to be unemployed to start with.

On the other hand, at $5/hour an employer might be able to hire 6 people, but at $7/hour the employer can only afford to hire 5, thus creating unemployment, or stifling the growth of the job market, depending on the current trend, growth or decay.

But then I'm not an economist and I just reason these things as best I can. There's probably some economics thing that I don't know about, so back to my original statement, I don't disagree, just don't understand.
 
Pull the hammer back and cock it, light the fuse on the bottle rocket. Does anyone hear something ticking???? :p
 
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