Comments on: Do These Arguments for Raising Minimum Wage Make Sense? http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: StL Pastor http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429788 StL Pastor Sun, 12 Jul 2009 02:22:37 +0000 http://allfinancialmatters.com/?p=3643#comment-429788 Also, its not like increasing the minimum wage is eaten entirely by inflation-most of the stuff we buy is imported, and built by people making less money than minimum wage. Increasing minimum wage does not increase costs at a one to one ratio, since labor is only a small part of most production costs, so it doesn't all get eaten by inflation. Thus, it is a real way to increase the buying power of the poor. Plus, we tested not having a minimum wage. It leads to lots of poverty, and super long working hours. I think this is an easy issue, obviously increasing the minimum wage is a good thing. StL Pastor Also, its not like increasing the minimum wage is eaten entirely by inflation-most of the stuff we buy is imported, and built by people making less money than minimum wage. Increasing minimum wage does not increase costs at a one to one ratio, since labor is only a small part of most production costs, so it doesn’t all get eaten by inflation. Thus, it is a real way to increase the buying power of the poor. Plus, we tested not having a minimum wage. It leads to lots of poverty, and super long working hours. I think this is an easy issue, obviously increasing the minimum wage is a good thing.
StL Pastor

]]> By: JLP http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429137 JLP Tue, 07 Jul 2009 21:29:07 +0000 http://allfinancialmatters.com/?p=3643#comment-429137 I'm aware of the comment situation. Somehow older comments were assigned later times. That's why your comments aren't listed at the bottom. I’m aware of the comment situation. Somehow older comments were assigned later times. That’s why your comments aren’t listed at the bottom.

]]> By: RetiredatForty http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429135 RetiredatForty Tue, 07 Jul 2009 21:15:34 +0000 http://allfinancialmatters.com/?p=3643#comment-429135 Something tells me Californians aren't ready to move to Mississippi or Alabama or any of the other southern states. They'd rather take their chances. Economically, California is basically a country all by itself even with all its present problems. I believe it would be the 6th largest country in the world economically if I remember correctly. In any case, there isn't much of an argument that raising the minimum wage is much of a factor. BTW, this comments things of yours is really weird. It has my comments posted out of order and updates the number of comments but delays the latest comments. Never seen anything like it. Something tells me Californians aren’t ready to move to Mississippi or Alabama or any of the other southern states. They’d rather take their chances. Economically, California is basically a country all by itself even with all its present problems. I believe it would be the 6th largest country in the world economically if I remember correctly.

In any case, there isn’t much of an argument that raising the minimum wage is much of a factor.

BTW, this comments things of yours is really weird. It has my comments posted out of order and updates the number of comments but delays the latest comments. Never seen anything like it.

]]> By: JLP http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429132 JLP Tue, 07 Jul 2009 21:03:03 +0000 http://allfinancialmatters.com/?p=3643#comment-429132 Retired, Yeah, I know California is doing great right now! LOL! Sorry...I just had to mention it. I wouldn't say that the Southern states you mentioned are doing poorly. Retired,

Yeah, I know California is doing great right now! LOL! Sorry…I just had to mention it.

I wouldn’t say that the Southern states you mentioned are doing poorly.

]]> By: RetiredatForty http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429127 RetiredatForty Tue, 07 Jul 2009 20:38:53 +0000 http://allfinancialmatters.com/?p=3643#comment-429127 Here is something interesting. The states with the highest minimum wages are Washington, Oregon, Massachusetts, Illinois and California. All Democratic. The states with the lowest, the Southern Republican states of Alabama, Mississippi, Louisiana, S. Carolina and Tennessee. I'd say the higher wage states are doing better from a strictly economic measure. Sante Fe N.M. has a minimum wage of a whopping $9.92 per hour. Having just driven through it, I can attest that it is having no problems with economic growth. I found a research report by U of Indiana that said that Illinois actually grew economically when compared with similar sized midwestern states that did not increase their minimum wages after a wage increase. The Oregon Center for Public Policy reported that analysis showed that "minimum wage cost-of-living adjustments have not led to the dire consequences predicted by the farm and restaurant industries that opposed pegging the minimum wage to inflation." In fact, fast food restaurant jobs increased at 19% per year afterward in the state. In the end, this really is a political argument. Only about 7% of the workforce works for minimum wage and most businesses pay more than the minimum because they cannot afford not to. So it does not have much real world implications. Here is something interesting. The states with the highest minimum wages are Washington, Oregon, Massachusetts, Illinois and California. All Democratic.

The states with the lowest, the Southern Republican states of Alabama, Mississippi, Louisiana, S. Carolina and Tennessee.

I’d say the higher wage states are doing better from a strictly economic measure.

Sante Fe N.M. has a minimum wage of a whopping $9.92 per hour. Having just driven through it, I can attest that it is having no problems with economic growth.

I found a research report by U of Indiana that said that Illinois actually grew economically when compared with similar sized midwestern states that did not increase their minimum wages after a wage increase.

The Oregon Center for Public Policy reported
that analysis showed that “minimum wage cost-of-living adjustments have not led to the dire consequences predicted by the farm and restaurant industries that opposed pegging the minimum wage to inflation.”

In fact, fast food restaurant jobs increased at 19% per year afterward in the state.

In the end, this really is a political argument. Only about 7% of the workforce works for minimum wage and most businesses pay more than the minimum because they cannot afford not to. So it does not have much real world implications.

]]> By: TexasGeek http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429123 TexasGeek Tue, 07 Jul 2009 19:57:56 +0000 http://allfinancialmatters.com/?p=3643#comment-429123 I gotta say I'm with MBH on this one. From your blog header: "...budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management..." How does this post fit into that? Just because it's about money doesn't make it about personal finance. I gotta say I’m with MBH on this one. From your blog header: “…budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management…”

How does this post fit into that? Just because it’s about money doesn’t make it about personal finance.

]]> By: JLP http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429107 JLP Tue, 07 Jul 2009 19:19:19 +0000 http://allfinancialmatters.com/?p=3643#comment-429107 Retired, You didn't answer my questions. Also, this isn't a Republican/Democrat issue. Both parties have voted to increase the minimum wage because they are politicians and want votes. Why do you get so angry over this issue? Why is it a joke? Why can't you discuss things without getting angry? Retired,

You didn't answer my questions.

Also, this isn't a Republican/Democrat issue. Both parties have voted to increase the minimum wage because they are politicians and want votes.

Why do you get so angry over this issue? Why is it a joke? Why can't you discuss things without getting angry?

]]> By: RetiredatForty http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429102 RetiredatForty Tue, 07 Jul 2009 19:03:19 +0000 http://allfinancialmatters.com/?p=3643#comment-429102 What is it with Republicans and the minimum wage? Every time this topic comes up, they forecast doom and business continues as usual. The minimum wage has to increase every now and then. This topic is a joke. What is it with Republicans and the minimum wage? Every time this topic comes up, they forecast doom and business continues as usual. The minimum wage has to increase every now and then. This topic is a joke.

]]> By: Yana http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429076 Yana Tue, 07 Jul 2009 15:49:36 +0000 http://allfinancialmatters.com/?p=3643#comment-429076 I think "minimum wage" is a legal designation, put in place so that companies don't pay even less. I don't think of grocery store checkers as low-wage employees, and working at a grocery store or Target is not a minimum effort. If raising minimum wage rewards the behavior of being employed, it is a good thing. Some jobs are very necessary to the recipients of the workers, and sometimes individuals are very suited to the work, even though it doesn't pay a respectable wage. I don't think a person improves himself by abandoning a job well done, one that he is suited to, for greater pay. Minimum effort, on the contrary, often goes with high-paying jobs. The hard work is done by the peons for crumbs. Of course that is a general statement; there are some professions that are very hard, specialized work, that also pay big bucks. And should. I think "minimum wage" is a legal designation, put in place so that companies don't pay even less. I don't think of grocery store checkers as low-wage employees, and working at a grocery store or Target is not a minimum effort. If raising minimum wage rewards the behavior of being employed, it is a good thing.

Some jobs are very necessary to the recipients of the workers, and sometimes individuals are very suited to the work, even though it doesn't pay a respectable wage. I don't think a person improves himself by abandoning a job well done, one that he is suited to, for greater pay.

Minimum effort, on the contrary, often goes with high-paying jobs. The hard work is done by the peons for crumbs. Of course that is a general statement; there are some professions that are very hard, specialized work, that also pay big bucks. And should.

]]> By: Josh B. http://allfinancialmatters.com/2009/07/06/do-these-arguments-for-raising-minimum-wage-make-sense/comment-page-1/#comment-429048 Josh B. Tue, 07 Jul 2009 13:54:22 +0000 http://allfinancialmatters.com/?p=3643#comment-429048 Courtesy of JD (and US Bureau of Labor Statistics): "Many workers begin their post-school careers in jobs paying the minimum or something close to it, but…the vast majority of workers move on to higher paying jobs as they accumulate experience. However, there is a nontrivial fraction of workers who spend substantial portions of their early careers consistently working in minimum wage jobs. [...] Less educated persons, blacks, women with young children, and workers who reside outside of urban areas are much more likely to have such minimum wage careers." (<a href="http://www.getrichslowly.org/blog/2007/10/09/who-earns-the-minimum-wage/)" target="_blank">http://www.getrichslowly.org/blog/2007/10/09/who-...</a> Courtesy of JD (and US Bureau of Labor Statistics): "Many workers begin their post-school careers in jobs paying the minimum or something close to it, but…the vast majority of workers move on to higher paying jobs as they accumulate experience. However, there is a nontrivial fraction of workers who spend substantial portions of their early careers consistently working in minimum wage jobs. [...] Less educated persons, blacks, women with young children, and workers who reside outside of urban areas are much more likely to have such minimum wage careers." (http://www.getrichslowly.org/blog/2007/10/09/who-...

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