The U.S. Senate decided to pass the minimum wage bill, which will increase the minimum wage to $7.25. Oh brother. I would have voted to ditch it, not raise it.

Senator Edward Kennedy said this:

Passing this wage hike represents a small but necessary step to help lift America’s working poor out of the ditches of poverty and onto the road toward economic prosperity.

That road to prosperity must be full of pot holes. Not only are these people not going to be more prosperous, the minimum wage increase will have financial ripples throughout all industries and government.

What’s going to happen to the guy that is making $7.30 right now? His job was valued at around two dollars above minimum wage. Now that minimum wage has increased, has his job increased, decreased, or stayed the same in value?

As stated before, minimum wage should be determined by the wage people are willing to work for. A blanket wage for every state and every job is ludicrous.

The minimum wage is unlikely to affect me directly, but I’m still scratching my head over why some people think that minimum wage actually helps the situation.

Comments

  1. Yeah, it might as well have been $7.77 in commemoration of the windfall 40% pay increase for our nation's minimum wage workers. That the bill provides for a 2-year phase-in should help the economy "absorb" the ripples; I predict expanded replacement of workers with (then) easier to margin technology, e.g. grocery store automatic check-out machines replace upwards of 4 cashiers & baggers, ATMs several tellers. Nonetheless, I support an increase but would have envisioned an even more gradual approach. The traditional 40hr./week worker only sees a max. gross increase of $4,368 if s/he stays at min. wage and goes from annual wages of $10,712 to $15,080. The net effect on employees, I think, will be fewer "gimme" and promotional wage increases. Many employers will now have a wage floor/cieling of the same denomination: $7.25.

    Do you suppose the "view from the top" by a Congress of millionaires hasn't appropriately fathomed the underlying economic reprecussions/resistance of a $4k increase x millions of min. wage workers? Or do they see fiscal opportunity for America that we simply don't when the price of cheeseburgers, dry cleaning, and our cup of java goes up by 50 cents? Bueller? Bueller?

  2. It could be that this left leaning congress and a bunch of spineless Republicans are just trying to buy the votes of the bottom wage earners. It is a sad and dangerous situation in our country when people can start voting themselves handouts from our governement which is essentially what the min. wage is. They may not be getting the money from the gov't. directly, but the gov't. is strong-arming businesses and forcing a min. payout per hour rather than letting the market decide these things. Prices wouldn't be so high if the gov't. would keep its nose out of peoples' business and would encourage accomplishment rather than rewarding people on the bottom of the wage scale just for being there at the bottom.

  3. i think every employee should be able to pay what they want to pay people .. maybe these worthless workers at McDonalds will work harder for there now $7 an hour … if you told some one they were only getting paid 3 dollars an hour because thats what they deserve i bet they would be come the best damn burger flipper this side of the ole mississippi ..

    (not all mcDs employees are bad just the ones in north parkway mcDs)

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