Businesses brace for minimum wage hike
Business owners face a cost spike next week, when minimum wage rises to $6.55 per hour. What do you think of the increase?
From Jeremy, Nashville, Tennessee I'm still waiting for my paycheck to say i am making 6.55 per hour; was tennessee not affected? Why am I still at 6.35? Is my employer trying to hide it from us? I need to know!
"E-mail addresses will be used by our staff to contact you…" Can you answer my question? I need some kind of closure, or at least guidance to what I am looking for!
From Matt Nerzig It?s not just those on a minimum wage having a tough time, but one-third of all Americans who are struggling to get by on low wages. And with the number of low wage jobs ? primarily service jobs ? growing, things are likely to get worse. In the next ten years, some 5 million new jobs will pay low wages unless something is done.
Too many people are juggling multiple jobs, working more hours than they can count, and still not making enough to pay their bills. And as the number of working poor grows, so — as unfair as it sounds — does the number of millionaires ? now 10 million.
The top 1% of households take home 21.8% of all income – more than double the 8.9% rate of thirty years ago. This is the highest concentration of income in the hands of the wealthiest one percent since 1928, a year before the great stock market crash.
At no time in our history has the disparity in personal income been so wide and in no other industrialized country today does the disparity even come close. Record-high CEO compensation is more than 400 times the take-home pay of an average American worker.
For an industrialized country like ours, there is no parallel to this growing income divide between the highest- and lowest-paid workers. Corporate executives in England, for instance, make half as much as American business leaders while the lowest-paid workers there earn a higher wage than their American counterparts.
Pegging the minimum wage to a percentage of median income would raise it and then keep the lowest paid workers on pace with future increases of the rest of the workforce. Expanding the Earned Income Tax Credit for low wage workers ? a budget cost that would easily be offset by raising taxes on the very wealthy or closing tax loopholes for large corporations ? would also help low-income families teetering on the brink of poverty.
Government programs alone will fall short of the mark. Enabling workers to more easily join unions could make an immediate and wide scale impact in that union workers make more than their non-union counterparts. In Maryland, for example, low wage union workers make 15 percent more in wages than their non-union counterparts and are 25 percent more likely to get employer-paid health care and a pension.
Unless these and other steps are employed to address the growing income imbalance in our economy, we could wake up one day and find ourselves in a country of the very rich and the working poor.
From cmchansen, Virginia Beach VA When I first started working in 1994, the state minimum wage was $4.95/hr. I was hired at McDonalds for $5.05/hr. Four months later I took a second job at another fast food restaurant at $5.25/hr. Later that year our state min wage was raised to $5.15/hr. After graduation, I applied at Mervyn's and was hired at $5.85/hr. I went to community college and constantly scoured the job boards until I found a part time receptionist job at $6.75/hr. After almost a year, I found another office job for $7.50/hr but was layed off after four months. I was unemployed for one month. Then I found a program at State Farm which hired part time students to do some office work…this was not an internship. Internships were offered to 4-yr college students only. However, this position payed me $8/hr, and after 6 months of working very hard and impressing my bosses, I began working full/time at over $9.50/hr. I kept up this pattern of hard work, gaining experience and job searching until I was being paid $14.50/hr. Now at 31, I realize how essential it is to complete my 4-yr degree if I want to make over $40k/yr.
I can totally relate to minimum wage earners and how hard it is to support a family. We are a one-income household because I cannot afford to work part time and put two young children in daycare.
However, I understand that my earnings were based on the decisions I made. I worked hard to better my situation, so it is hard for me to understand how someone my age could be permanently doomed to only minimum wage positions. In fact, I made a mistake very early on in my career. I was offered a supervisor positon at both McDonalds and my second job if I stayed until I was 18. At the time, I didn't have the foresight to see how beneficial that experience could have been for me. So I know from experience that if you work hard enough you won't need a mandated wage increase. You'll be promoted before any increase even takes effect.
I want to be informed, so please enlighten me as to what specific jobs pay only the minimum. It's been my experience that most positions pay more.
From Steve Evans Gallatin,Mo. It is a sympton of a much deeper problem, that of inflation in our country. I wonder if it isn't some how caused by the social security retirement system, in that the government spends this money without a good return on investment,then must borrow the money to pay out the promised benifits (which have been over promised without funding mechanisms other than borrowing). This allows sloppy government management of expenses by spending the "free" money. Taxation is a form of borrowing. This process then puts us at an wage disadvantage to other counties and jobs leave the country.Why don't the politicians face the facts and quit blaming every other enity.
From Sarah Niles, IL It may seem like a good thing now…..but in the long run it will prove to be wrong. If employers are forced to pay more per hour, they will begin to cut hours, eliminate jobs, thus making the economy even worse. This seems like a quick fix idea like the stimulus checks….gave us money but increased sales tax….thus making the govt even richer in the long run. The increase in sales tax has alfready affected small businesses, the economy is shaky which is already making employers nervous about hiring, giving raises etc and now this. The govt needs a real plan…..not a quick fix. They should be focusing on getting gas prices back on track….they should be focusing on getting companies who have outsourced to hire americans….these increases serve no purpose until the main problems are fixed!
From BRian Stoker, Gold Coast, Queenand, Australia As has been previously proposed,
Minimum wages should be raised until everybody is gettng at least the average wage.
From Christopher Jowers While I Agree with Mike from Boston that this is just a cycle that will eventually hurt the economy by increases consumer prices and increasing unemployment. I must disagree with the assumption that minimum wage earners are not the bread winners I Have a family of six (me my wife and 4 children) My wife stays home with the kids as a min. wage job would only pay for the sitter/daycare, thus I am stuck earning the house hold income working 60hrs a week @7.25 an hour this gives us 1000 dollars a month, plus $245 a month in food assistance, 600 of that instantly goes to rent, 120 of that for electricity, 30 for water,that leaves $50 dollars a month to split between , cloths, entertainment,household goods, transportation, ect.
Everyday is a new struggle, there has to be a better solution to this problem like companies splitting profits more appropriately (as it is the workers who make your money for you)when you have an owner/CEO that pulls in 1 million a year and has more money than they could possibly ever use, but has employees that earn 10,000 a year and can't afford a ride to work, I mean seriously what kind of since that make.
The only way to live the right way the way an American Has the written right to live is to own a business or have money to pay for a college education.
Pretty much you have to have money to make money, so if your an Min. Wage worker your just struck.
From Paul Inverness, Fl Oh so many issue with just one attempted solution. 3rd world living???? Give me a break an look at a true 3rd world country. Yes working conditions stink and wages also, but why do we Americans need two cars and houses and vacation homes and gold toilets and mahogany courtrooms etc. etc. etc. We are soooooo spoiled in America. We count our neighbors blessings and not our own. I have a roof, car, job, cable, internet, food, phone, cell phone, starbucks coffee, premium channels, TIVO, not to mention my toys like boat, jetski, guns, collectibles etc. We must have the best just to show off. What ever happened to living within our means. Have we become so entitlement minded that we cannot see that the government is us???? We are the people we are stealing from and hurting by expecting the government to meet our needs. WE DON'T NEED A MINIMUM WAGE WE NEED A MAXIMUM WAGE. No CEO should be able to make more than 1000 times the lowest paid employee. Greed has gone on long enough. We are all part of one another and our increase at the expense of someone else's decrease is criminal. Let me say that again. PERSONAL INCREASE AT THE EXPENSE OF SOMEONE ELSE'S DECREASE IS CRIMINAL. Provide an honest days work or honest priced product and people will buy it. Charge too much for an over pitched undervalued product and it doesn't work.
Why do Americans think they are worth so much??????
From chuck, fort valley, georgia unemployment would be rampant.
From chuck, fort valley, georgia The minimum wage is too low for what the economy is doing now.
The only problem with raising it will be that more people will likely be laid off or put out of work because the businesses that pay this wage won't be able to afford it or just don't want to pay that much. They will fire or lay off people and expect the ones remaining to pick up the work pace.
Its a vicious cycle that there will be no end to in the coming years.
From mobadthangood, middle, georgia What planet do you live on?
From Paul Inverness, Fl It is a slippery slope, but I must say that raising oneself out of the muck and mire should be the goal not making it a livable wage but making education more affordable so these min. wage earners will move on to better jobs. Unfortunately, we seem to have turned to stealing and lying and cheating to get the means to survive instead of good hard honest work.
From David Secrist, Dallas, NC Every time the government sticks its nose into our business things go wrong.
When will we realize that businesses never suffer from minimum wage hikes or tax hikes–these added costs show up as increased unemployment and/or at the retail level.
From Paul Inverness, Fl This is a difficult situation. I am not seeing a raise and yet what I will pay for items will continue to go up making it harder for me to spend any money. It is the middle class who gets pinched in these situations. Yes I belong to the middle class and between property taxes, insurance rates, food and gas I will join the poor class very shortly. Capitalism is not working right now and we need to solve the issues of how we keep an economy going without causing waste that will pollute us out of life. We are so wasteful in America, a disposable society including our old and young.
From John P-Chicago, IL Why does everyone think our economy is broken? the US still has a GDP that is over 20% of the world's production while only containing 5% of the total nation. Even 2% in our economy equals out to higher growth (in an actual dollar amount of GDP growth) then, I believe, is higher than any other nation in the world.
Things aren't broken and as for the people complaining that they don't have enough. Obviously you have a PC with an internet connection. Than do you have a place to live, a refrigerator, a telephone, food to eat, electricity, and running water? Stop saying that the rest of the world is doing so much better than us when 95% of it can't answer yes to even 2 of those items above.
From Mike N, BOston Anyone who thinks this is a good thing is living in a dream world. Theoretically it sounds good to pay people more. In actuality, this will hurt the economy as businesses reduce employee head count and/or raise product prices passing the burden of this regulation on to the rest of the already struggling economy. A large majority of minimum wage earners are not the primary wage earners of their household anyway.
From Jean Maltz Staten Island, N.Y. The federal government's minimum wage is shameful and immoral. It is so low it is no wonder we have more people living in poverty each year in this country.
From skip besch I am sure that the small bussiness owners earnings are kind of like proportionate to the execs of big bussiness who seem to need manty millions per year to survive. I have heard that greed eventually devours itself.
I myself have been on SS disability for over 20 years and receive $952.00 per month, and am sure with inflation it will increase by $20.00 per month next year.
Good luck to all of the non greedy min. wage earners out there…who can't even afford Food and Rent.
From J.Paulson Howell Co Mo A solid 40 hour effort needs to be paid a living wage. For everyone getting paid less than they are worth they are people making more then they are worth. What's fair? Beats me.
From David No one is worth more than $1 below the neck and their work will be replaced by machinery if they end up costing too much. The cost of an employee after all goes well beyond just the wage cost. The fact is, very few people are in min. wage jobs very long, are in them full-time and are not students or given raises after a period of time. There should not be much incentive to remain in a min. wage job for long anyway, and most people don't.
Work in high school to move up in the labor force, go to comm. college and learn a trade, college, join the military or work starting at $10.00 + and hour after hs, living at home until you can do better. There are few excuses to being the grasshopper year after year while the ant works.
From CJ, D.C. The minimum wage increase only helps a few and hurts the majority.
Examples:
Instead of having a second person at the checkout line assist with the bagging, the job will simply be eliminated.
Instead of hiring US citizens, it will be cheaper to hire illegal immigrants, who are willing to work for less.
Small Biz owners will eliminate jobs and simply work longer hours.
Instead of hiring more workers, larger companies will simply invest their capital in upgrading equipment and technology to achieve greater efficiency w/o human capital.
People are paid what they're paid because, frankly, that's all their time is worth.
In fact, stretching the "living wage" idea further, why don't we simply create a "comfortably living wage" and increase the minimum wage to about 40~50 dollars an hour? It would be exactly the same as raising the minimum as it is, except we'd see the effects even more clearly. Catastrophe and chaos for all.
From Al, Canton, GA Minimum wage only keeps workers out of work. Companies are reluctant to hire inexperienced employees or those who are in entry level positions, preferring to look for employees with more experience when they are having to pay a higher minimum wage. Companies may have to cut back on hours worked because they cannot afford the higher minimum wage. Both of these only cost workers money…it does not help them.
From Bob Brick NJ What everyone here fails to see is that we are just doomed as a nation. Our trade practices and economic terrorism is coming back full circle. We wanted things cheap, we bought foreign oil, we manufactured our goods overseas. Now their economies are booming and ours is sinking. Soon they will want things cheaper or want more money for their labor and we will pay even more until we have nothing left. Guess where all there cheap labor will come from, us. So get prepared for it people we did it to ourselves.
From Lance Wayman The increase of minimum wages can only hurt our economy. When you look at
retail and you go to the mall or grocers and fast food, we are esentially
forcing everyone to charge more. Stock holders are going to be looking at
the bottom line. It is great that revenues are increasing but they are only
increasing from the increased price so that stock holders still see a profit
greater then last year. Employers are either going to shorten staff in
hopes to increase productivity or increase prices to make up the difference
since labor is the most controllable expence in any business. When you see
a min. wage increase who's wages are we increaseing? Typically its the
younger generations who typically do not have the same responsibilities as
the older generations. If my son had a partime job today getting 20 hours a
week then next week he will either make an extra $10 to spend as he wishes
or working fewer hours. What about the parents who pay the bills. Our
bills are going to increase but our income is not. If the gov't wants to
control wages then they should take a look at every position and create a
pay scale based on it and the requirements. Honestly does the sacker at
Safeway need more money then the produce manager? Next week I will have to
pay more for the same groceries and end up sacking them myself as well. So
instead of buying more I will have to adjust my expences to stay within my
budget.
From calvin, Somerville, NJ IT's time for an increase in the minimum wage. Many Corporates have been getting away with low balling the lay employee.After 14 1/2 years with a college degree working for global company I started at 28,000and end at 46,800.Now Laid-off and I really understand how this system works. The truth it doesn't.
From John P-Chicago, IL Never heard it that way Brian and I like it. If you don't want to make 6.55/hour no one is forcing you. Tons of jobs out there if you are willing to work and educate yourself. Heck you can get your CDLs and drive a truck and make over double minimum wage easily, and if you agree to stay on for so long some big trucking companies will pay for your education. Or the military; free education, job training, housing and pay.
The options are out there. If you want to make minimum wage that's your business. But don't whine about it, there's always a choice.
From Brian, Cleveland OH Welfare is a joke. Everyone is crying, saying that no one can live on $6.55 an hour. Well we live in a nation with a lot of freedoms and choice, if you don't want to make $6.55 then go find a job that makes more and prove that you're worth more.
No one is forced to work at a minimum wage job, so we don't need protection from greedy employers. Your protection is your ability to quit and work somewhere better.
Everyone complains that businesses are greedy for not paying more. Well I think it's greedy to work the bare minimum and expect to get paid a living wage. Stop complaining and start taking some accountability.
From David – Oxon Hill MD. Who can Actually Live on the Federal Minimum Wage?? I would expect very very very few can do that, this pay rate is a joke. I am very fortunate I make allot more then that. There are many people in this country who also should be looking for work and don't and instead of taking welfare they should be looking for work and take our Jobs back from Illegal Aliens.
From Carrie, Phoenix, AZ Jim you hit the nail on the head. I am a small business owner and pay should be based on performance; no floor or ceiling price should ever be set since it will do nothing but create inefficiencies. Not to mention hike inflation and unemployment. If production for a business increases, how do people think that business will accommodate?! Push it thru to the consumer by raising the prices of their goods and services sold. So now consumers will be paying higher prices to go along with their higher pay…so is anybody REALLY getting a pay increase? No, just decreasing the value of the dollar…and remember, oil prices are pegged on the dollar, US dollar value decreases, oil prices increase. Double whammy!!!
From matt z, boise, idaho The government seems to forget the factor called technology. With the increase in labor costs, self kiosks will replace a large number of entry level jobs. Cashiers and waiters will be reduced in the next year.
From Calvin, Philadelphia, PA There is only one questiopn that need be asked. Who is John Gault?
From Phil, Toledo OH I agree with Dale for a few reasons. First this is a price control that will just mess up the market if it is in the proper range. 2nd this is not going to help those supporting themselves or others. This will only increase their costs without increasing their pay. How? Well at some point we consume something produced or handled at this wage rate so our costs will increase but since we make more than the min we will not see a pay increase.
From RALPH WEIRTON, WV what good will it do when any increase is eaten up by gas prices just to get the worker to work? the minimun wage should go to$9.00 per hour.
From Steve, Galesburg IL Victor, unions are the bane of business existence in Illinois. My town specifically has lost over a thousand jobs in the last six or seven years, due to outsourcing. Why did they outsource? Unions. Half of the outsourced workforce (primarily, Maytag) was sent to Iowa because union presence is much less prevalent. And why hasn't anyone wanted to move in with available workers? The same thing–unions.
The fact is, unions are an outdated resource. Granted, they have been a major proponent of generating worker safety and fair labor, but many of those are now in the law books. So I say, have a minimum wage or have union presence, but don't have both.
From ktackett, California I am a small biz owner in California, I don't even know what our min is, as I would never pay so low. I only have a small retail store, but unlike Walmart, I don't give my employees instructions on how to get govt assistance so that I can pay less. I only have 5 employees, and unlike Walmart I'm not making billions while my workers are getting food stamps. Hmmm! I guess that makes me un-American. I also don't get the tax breaks that Walmart gets when they open a new store. On average across the country wages go down 15% and 100 small businesses go out of biz when Walmart moves in. Thats alright, I didn't want my kids to grow up knowing what community & main street are, I wanted them to witness 3rd world conditions in the United States. I love Walmart workers, by the way they treat you when you shop there, you can tell they love their jobs, never a please, thank you or smile, but when you pay shoddy wages they should have an I-don't-give-a-****-attitide!
This article featured a woman who made FIVE MILLION DOLLARS last year whining about paying her employees. Pleeaasseeee!
From K Tackett, California Hey, We shouldn't have a minimum wage, that way employers could pay .50 cents an hour so that our workers could compete against Chinese. We should also take away all those pesky safety & enviromental laws like they have in China. That way if an employee gets hurt it will be their problem, not the poor employer that is getting rich off the back of the worker. It would also be really great if we just got rid of the 8 hour work day & made them work 10 to 14 hours a day, cuz w/ out a minimum wage we wouldn't have to pay overtime. I just would love to get rich while the workers in this country subsisted on 3rd world standards.
If you look back at history, we did at one time in this country have no minimum wage, we had the rich & the poor. We had children working in sweatshops, we had unsafe conditions & if a worker was injured they had to figure out all by themselves how to take care of it. Wow, lets do it like China, they have pollution at seven times a save breathable limit. That works!
From Dale, Dallas, TX I oppose any minimum wage. Let the marklet determine the wage.Good employees will always make more than the minimum. Minimum wage punishes the small business owner and rewards the slackers.
From Jim Henderson, Denver CO You people should not fret about minimum wage. After all your dollar has been sinking, and most of your manufacturing base has been moved over seas. It's funny how we are now debating how to compete with Indian and Chinese labor. Just remember that business will always go where the cheapest labor is. Maybe you should move to Vietnam or better yet just except a lower standard of living. After all corporate profits have been booming since 2003 and that should make you happy (it makes people who own the company happy). People you are thinking very small when the debate is on a minimum wage hike. We need new innovation and new bold ideas that will create the new jobs of tomorrow. This will create higher paying jobs. We are now in survival mode and will stay their if we don't innovate.
From Jim mc fountain hills, az Ever heard of Adam Smith , he wrote a couple of note in a book called the "Wealth of Nations" it is the bible of business today and was written over a hundred years ago. In he stated that business will seek the level in which they can be successful (and that includes labor. my words) Labor will
seek their best interest.
Government is the worst variable to have in the equation as their track record is abysmal. So why would any thinking person believe that the arbitrary figures that the government sets will work. If not sure go to the south and see the FEMA condemned mobile homes that they have had to live in for years.
From victor, Ames IA. The wage earner always bears the brunt
of the higher cost of doing business,
so what's new? An unregulated free market keeps wages down,can you say collusion? I own a remodeling company
and if I could get away with it I wouldn't pay $5 an hr.,and if Wal mart could get away with it,$2.50hr. tops. You only have to look at the current immigration fiasco, big business not paying income taxes and withholdings on the illegals,why? No watchdogs to keep them in line. We are a nation of laws and there is no reason (except greed) that we shouldn't have laws governing labor.So try to find a better paying job huh!Get out of one pool of sharks and jump into another pool of sharks,keeps the bosses fat and happy. can you say collusion?
From victor, Ames IA.v All you have to do is unionize your job site, everyone who is working anywhere should do what we did in the sixties and
seventies, if it wasn't for reagan and his union busting tactics we wouldn't need a min. wage. Unions for all practical purposes act to keep management honest or maybe moral.They make business share when times are good, not a bad thought huh!
From victor, Ames IA. A recent survey of nations with the happiest people just happen to be socialist countries, they work less although taxes are at 50%+ no worries about health care,legal representation is free, housing is subsidized. I had a business, a lovely house, I walked into a store when it was getting robbed,I got shot three times, one bullet (.44) removed my lower jaw-tongue & muscle. Guess who got my stuff? Lawyers and Doctors,
guess who was left without a pot to —- in? Ain't america great!
From victor, Ames IA.v economics 101
It's a known fact that happy workers show up to work, they produce more which leads to increased profits, the boss is happy, he hires more people.DUH!
From victor, Ames IA. productivity, huh!Put the pipe down dude. Companies over the last 7 years have had an explosion of (obscene) profits,based on your observations there should have been an equal explosion of increased wages due to increases in productivity which led to
these profits, correct? Didn't happen did it,nor will it ever unless leverage is applied.The color of money
cannot provide cover for moral inefficiencies,it exposes them.
My name is Victor and I approve this message!
From victor, Ames IA. P.S. you got it wrong, not having a min. wage increase cut the arms off the laborer whose sweat and blood makes the owner (predator)rich.Well paid individuals are happy, there's an increase in production, which increases profits which leads to expansion which leads to increased employment.Didn't they teach you that in economics 101?
From Dave. Zanes., OH Real case (mine) scenario – senior on government work program. Minimum wage went from 6. to 7.00, my hours went from 18 to 15 per week, I lost $34.00 every two weeks. I'm no MBA, but even a high schooler can figure that with finite budgets higher minimum wages translate to fewer workers, fewer hours, less productivity and ultimately fewer businesses. In SE Ohio we use giveaways, auctions, fund raisers, anything to operate our town and the result is $0.00 – major deficits, large corps "turning and burning" the work force, populations shifting to be closer to work, those stuck turning to drugs, gambling, and other "profitable" crimes and these don't make "model citizens". Dave.
From vic ames ia. Jason, get a grip! There are several tiers to high school, jr. college and college. Those unfortunates who are on the wrong side of the tracks work at McD's(less tax revenue = less spent on ed.)= less opportunity.There is no equality in equity in a free market, only predators.(That's well educated predators)As a free market society we have condemned generations to come to a life of poverty because they will not have access to the same type of education you had, feel like a predator yet?
From victor, Ames IA. Scott, it's about equality in equity, even in a free market society.Do you honestly believe that wages would go up for minimum wage earners if the feds didn't leverage?If it wasn't for unions and later the feds, YOU would still be making $3.25 an hr..Every business in america has an employee(s)
whose kids are hungry, sick, and no money for a better education, there isn't a business owner anywhere who wouldn't take advantage of their employee if left to their own discretion I.E.china/wal-mart working conditions. And our own american history proves me out.Again, it's about the inequality in equity that gives you your lifes path, not a free market, and your statement about those being left behind.Please don't tell me that rich people donate to the needy (to ease the moral pain of their greed), they don't donate out of the goodness of their heart,they do it to lower their tax liability, period. My name is Victor & I approve this message!
From M.Simpson, Springfield, Ill Monty Burns is probably crying all the way to the Caman Islands. How will big business survive?
From P.Soup, Brunchtown, Ny I agree with D.Gaul – so how do we stimulate demand with the poor barely able to feed themselves-this is a shame on all of us.
From Donny Gaul, Bigville, Ok Not enough….it's just mean – be an employer sure, but if you can't pay $10 ph, your business sucks – and you're a half-witted shmuk who knows nothing about human dignity.
From Chris, Santa Barbara, CA Every attempt at price fixing by the government has backfired. Why would this time be different? Fixing the price of labor either results in higher costs of goods, or more unemployment, or both. If a business can attract labor at $5/hr, then clearly there are people for which better opportunities don't exist.
I've worked two jobs (technically both full time, though one wasn't 40 hours) for the last 3 years. I live off of one paycheck, and save the other. One thing I've discovered: When you work two jobs, you don't spend nearly as much money on ways to rid yourself of free time (entertainment, impulse buys, etc).
From Hugh in Brighton England Come on – $6.55, is no decent pay rate for anything in the worlds richest country……free enterprise, my ass – give the poor a chance. Any business that pays less is no business at all, its legalised slavery, and should be outlawed.The founding fathers knew what a free man was supposed to be – they'll be turning in their graves.
From Israel, Houston, Texas I think it is good because that what a competitive economy should look like. You cant pay people the same rate. Thats why you have people immigrating to different countries better life style better pay. That what America is about
From Scott Atlanta, Ga Minimum Wage laws are a joke. If you want a true market then wages would be set but the market not by the government. The key to alleviating poverty is education. If an employer offers a job, with a low wage, to someone that is overqualified then they dont have to take it, but if there is an extremely unskilled worker then they might be forced to work the job. We are a free market economy and yes people will get left behind (hence welfare (also a joke) and job training programs (they work)) but you cant expect employers to increase their payrolls or keep the same number of workers when the cost of labor just rose so much. Especially when it cuts into profits and every person in a business benefits from profits whether it is a dishwasher or a manager. The left has just increased the number of jobs that will be lost. Congrats guys.
From John Hall, Kingsport, TN Rick if federal, state and local government can give a cost of living increase to their employees then the people at the bottom tier should be able to get an increase. After all it is their tax dollars that pay for fedreal and state cost of living increases.
Minimum wage should be tied to federal and state cost of living increases. It would not be mandatory however if federal and state employees get a cost of living raise then minimum wage rises by the same percentage. If you didn't want a minimum wage increase then don't give federal and state cost of living increases.
From Chris Houston TX M Roberts in Irvine, CA is exactly correct. Minimum wage is stupid. Raising it will simply cause the Unemployment rate to go up, which isn't always a bad thing for the economy. Business's become more efficient when "forced" to pay more, in the end this can result in business making better profits and offering products to consumers at lower prices in the long run. This may sound great, but the harm is done to the "walmart worker" who gets layed off and replaced by a self checkout machine. Minimum wage = stupid, raising = more stupid.
From kevin conroe, texas Nicole obviously dropped out of high school and earns her minimum wage at the street corner. People should just go out and start their own business right? With what money? With what idea? With what knowledge to start this business? Hell why doesn't everyone just own their own business, obviously it takes nothing to do this right?
From Ric Trexell I'm sure businesses have been raising their prices over the last couple months to adjust for the wage increase. So it really doesn't help anyone. I have watched fast food places over the years and have noticed that a coke, burger and fries goes up along with the wage increase. Higher minimum wages means that the people that already get it will need an increase too. Some union contracts I have heard are tied to the minimum wage. So if they get 5 times the minimum wage, they will be getting a raise too. Government likes it because some people will go into a higher tax bracket. I agree that the federal gov. doesn't have the right to set wages. Ric.
From Steven Phoenix, Arizona In a true free enterprise system you should be able to work for any amount. That is if you want to work for three dollars an hour you should be allowed to do so.
From Mary St Louis MO In Missouri 6.55 per hr is still not enough. People work hard for that little bit of money, and it still doesn't cover the high cost of living. Our president needs to quit spending money we don't have on a war that is ridicules. The money being spent can go toward factories and other jobs right here in America. We need more money to spend right here. We need to pay the hard working Americans what they deserve, get rid of corporate greed and political greed and start taking care of our own country
From Paul, Seattle WA Minimum wage is pretty much irrelevant for anyone who isn't an illegal immigrant. You can make more than minimum wage panhandling so why would you take a job that pays less than you could get sitting on the street corner with your hand out? This is even more true if you actually do something to entertain the people walking by to give them a reason to fork over their spare change.
If you can't afford to pay your employees minimum wage then you're either trying to sell something that people don't want or you picked the wrong location to set up shop.
Same goes for just about any claim businesses make about "labor shortages". There's no such thing as a labor shortage. Labor shortage is code for "we're not willing to pay the market rate for this skill".
From Kyle, Lockport, NY Where I live in upstate NY even the fast food stores advertise for help between $8 and $9 per hour to start the minimum is irrelevent because nobody gets paid it anyway If you try to hire at the state Minimum nobody will work for you so you have to go higher I own a family diner and I hire dishwashers at $8.50 in order to get applicants.
From Joanne, Stanwood WA In truth, there is shame in a Country of wealth that pays solow a wage, even $6.50/hr is a poverty wage at best. How can a family live on this and support their children. Wasn't it Hillary who said "it takes a village to raise a child?"
From Bob, Fayetteville GA Amendment X
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
From Oliver, washington dc Its not acutally $6.55 per hour because tax is not taken out yet. People deserves more than $6.55 where government pays themselves well first, like congress, senate, and president. Why can't people vote how much congress, senate, and president get raise each year.
On the other hand, if business owners complaining about their cost will rise, then don't hire if you can't afford or raise your fees but be fair with the consumers as well.
The bottom line is, you as an individual can not rely on your government or employee, you have to be your own boss and start your own business Or run for POLITICS.
From FreshMeatz Half the workers at a local well known corporation that everyone uses, Wally World. at least in my store alone at 7.25 hr minimum wage we all start at are on welfare and some form of health care provided by the state. Now Wal Mart makes billions now, but to pay that wage and ask employees to go on food stamps and public assistance to buffer their loss is just sicking.
From Plano 6.55/hour still discriminatory and not in level with inflationary pressures we experience these days.
US should not have anyone being paid less than 10 bucks/hour.
Are we a westernized developed country or do modernized slavery ?
From David, Laramie, WY Glad to see that the discussion of this issue here is more open than at cbsnews.com.
Another comment: While I don't support a minimum wage in general, a minimum wage increase is a misdiagnosis of the problems facing America. We have a trade deficit not because we have a low wage problem but because we have a high cost of living problem. If you compare the salaries of minimum wage workers with their global competitors, the difference is in the cost of living in America, as their US wage is already too high. Why do you think people are trying to sneak in from Mexico? The system is out of equilibrium. The people who support this seem to be the same people who want to divorce the US from the rest of the world- no trade, no immigration. In reality, the minimum wage and everyone else's wages get largely swallowed by inflation and a declining dollar (bad for everyone).
From Charlie, Keyser, WV Wwwaaahhhhh! We're not all teenagers, or starting our first job. Those 'entrepreneurs' that sing "I did it my waaaay!" off key or those "Get a better job", or those offshoring everything to India or China pocketing hefty profits types forget this is a nation, not a constellation of 'I made my pile, up yours!' one-man-is-an-islanders. Face it, you're going to either pay a decent wage, or put off that 'second-childhood' chromed Harley purchase. Those Reaganite neo-cons are missing the fact that Adam Smith's 'Hidden hand' has a bit of palsy (just like Hitler, BTW), and government has a role to step in and enforce some minimum standards. We're all in this together. Long overdue, the minimum wage hikes.
From oliver Washington DC $6.55/hour??? Thats a joke. How can you survive with that wage when gas is $4.00.
Congress, Senate and Bush is a big joke.
From Jason, Parkland FL This law just cost many of the people that were supposed to benefit from the increase their jobs! When will the left understand that the answer to alleviating poverty is through education not hand outs. Many businesses that traditionally paid minimum wage (e.g. mcDonalds) already have increased wages above minimum based upon the demographics of the geographies they operate in.
Businesses are already struggling in these tough econimic times. This legislation just "cut the arms of the hands that feed the impoverished."
From Kevin, Green Bay, Wisconsin Does increasing the minimum job make the U.S. less competitive on a global basis and thereby costing the U.S. these low skilled jobs. Also, companies will automate more to reduce the use of low-skilled employees.
I know a few employees that are way over paid at minimum wage. They are morons but have a heartbeat.
WORKER WELFARE at its best!!!
From Paul South Florida Business owners are already taking it on the chin with inflated tax structures,workmans comp premiums and now raising the wages to employees that can't count,add or subtract unless they have a calculator,cash register or computer to do it for them.
http://www.sellmyinventory.com
From craig sanford fl why don't we just have everyone make 20 dollars per hour? No matter what you do or how long it took to get the skills we all make 20 dollars per hour.
I don't think we should but what a strange effect it would have.
From Robert, Cupertino, CA While it is true that minimum wage workers are struggling, raising the employment costs for small businesses in not the answer. Doubtlessly many of these small businesses will respond to the cuts in one of the most logical ways, decrease the amount of people they employee. Minimum wage is like unions which are great for members, but harm wages and employment for non-members. The minimum wage hike will be a great help for those workers that manage to keep their jobs, but for the overall economy, the layoffs and bankruptcies that occur will do nothing but harm; not to mention making it harder for unemployed people to find jobs.
From Tom, Poplar Bluff, MO I'm tired of the government dictating to me how much a worker's time is worth. They are clueless. I work in healthcare and we cannot pass on the costs of these government mandates. because of the last minimum wage hike we can no longer hire unskilled workers and train the on-the-job.
From Dan, Fredericksburg, VA I can't believe in America that anybody would pay somebody 6.55 an hour.
From Michelle, Seattle Wa ok, so how about this. What there was the option of the average wage as it sits now, and an alternate minimum wage of $10 per hour. If the company chose the higher wage, then have the government give tax breaks to the company for people who were hired off of welfare, people who were hired that are part time students, and for offering 401k options and some sort of health benefits to the employee. This would free up the funds for the employers, as well as stimulate the economy at the same time. Those going from the %5.85 an hour up to $10 would put a huge instant flow of money back into retail services, housing and such. That is what I think should be done about the Minimum Wage, or something like it anyways.
From Ryan, Atlanta, GA It's inflationary and the costs will only be passed onto the consumer. The consumer will then buy or spend less on goods and services which in the long run hurts the companies and those employees making the minimum wage. The market dictates wages above the minimum wage and when a downturn occurs you will just have fewer employees but all of them making the minimum. Not to mention the impact this will have on tax revenue – yes, less of that too.
From Kevin, Morristown TN Well goverment stagflation is on it's way. Small business can't keep footing the checks, Congress keeps writing. When are they going to get with the program and realize this will cost jobs and small businesses. This will cost me at least one employee just trying to keep our heads above water. We really need leadership in this country and not these same old political hacks working their same old moves. A little common sense would be nice.
From Montgomery al Minimum wage should be 10.00 an hour now. Raise your prices to pay it. If you have a good product or service people will pay. No Choice.
From ilene, Titusville FL I totally, totally agree with comments from Nicole in Phoenix.
No one owes anyone a job, no one owes anyone a specific salary. The only thing minimum wage does is prevent many entry workers from ever gaining experience, and drives many jobs either off shore, or to automation.
If someone doesn't like the wage they are offered, they can always start their own business and charge whatever they think they are worth. If no one is willing to pay that amount, then maybe they really aren't worth what they think, or want.
From Josh, Tucson, Az Americans must be paid more, especially the ones at the bottom level. If a single person cannot afford an apartment, food, utility bills, car and/or bus fare, clothing, and all the other essentials of life, then minimum wage is too low. If a business cannot maintain a decently paid staff, then that business should not exist. The only inflation I have ever seen during a minimum wage hike is in fast food restaurants, which we all can and should live without. Everyone else usually understands that you have to pay employees so they can live to work another day.
From Alan, Leawood, KS The people who get paid minimum wage are teenagers or people working their first job in learning a trade so that they can start their own business.
This minimum wage is a ripoff for Americans. The big winners are big labor, who is far worse than big oil!
From Jason, Jacksonville FL Nicole I think you miss the point of a minimum wage law. It is to protect the most unfortunate among us from falling prey to greedy employers. I don't think anybody is out there working a minimum wage job because it is their dream job. Not to mention that I can't even imagine the standard of living you get with a minimum wage job. For a vast majority of people working those jobs it is not as easy as just getting another job.
From Rick Olmstead What happens to people on fixed incomes? Will their Social Security go up as much as the minimum wage?
How about IRA accounts and 401k's that will have to be relied upon for retirement? Will an increase in the minimum wage effect them?
While everyone deserves a livable wage dependent upon the value they bring to their employer, that value should be based upon their poductivity. It should not be mandated by the government. I don't beleive there is anything written in our Constitution about a minimum wage.
From Marie, Manassas, VA Business owners care about money, NOT about people. Value & skill don't matter if they can replace you with someone who costs less, and as long as there are people who need to eat, there will ALWAYS be someone who costs less.
Minimum Wage, while still too low to support a family on, at least keeps most greedy businesses from devolving into sweatshops. Barely.
From David, Laramie, WY I agree with Nicole completely and don't support the idea of a minimum wage as making economic sense. In reality, you are outlawing jobs at rates lower than the minimum wage and then hope the employer can support hiring them at a higher wage. Its an inappropriate role for government.
I once posted a comment along this line on cbsnews.com and got hammered for being an elitist idiot.
From Matt, Chandler, AZ Mininum wage hike does more damage than good, even for the same people who receives minimum wage increase because the business onwners just simply pass that on the customers including them.
The mininum wage people would end up the same as before. Anyone with wage higher than the mininum just gets a paycut without realizing it. Not sure I understand the goverment's theory of economic.
Mininum wage job is supposely temporary and not permanent. With goverment keeps getting them the hike here and there, what motivates them to get out of mininum wage job then?
From Mike Sessions, Daphne, AL I own a car full service car wash near Mobile, AL. It is a forrest to believe the minimum wage hike will boost the economy. Yes it is true those employed will have more spendable income. However, to maintain profitability I am automating my washes and will lay off 33% of my staff. Walmart and other large employers are doing the same with self check out systems. Tell those loosing their jobs that the hike was a boost to the economy.
From g The government should not be involved in mandating what an employee is paid. It is not the government's place to dictate for the owner what that is employee's work is worth. It is up to the owner to decide the true value of the employee's contribution to the owner's bottom line. It does nothing to improve the low wage earners because the owner will make concessions to keep his business afloat like reducing staff or reducing the hours that they will work. It is also considered an entry level position and if that employee is still at that position well along in his/her working career maybe they need to examine their situation and ask themselves why they haven't accomplished more working skills in their lifetime. Why should the government have to take the responsibility for their inaction? Now is not the time to demand an increase in the mimimun wage rather we need a tax cut and not another "stimulus package" or you will see this great country fall to her knees because of the socialist ideals of the current government.
From Joshua ODonnell San Francisco CA No one, and I repeat NO ONE can survive on federal min. wage. It does not matter where you live in any part of the United States of America. If you work 40 hrs a week at $6.55/hr that is $262 gross, before taxes. You can not afford rent, let alone gas, or food, or pretty much anything.
It is a disgrace. Americans deserve better! Does America care about its workforce? Well, if it did, the Min. wage wouldn't be $262/ a week working a 40 hour week!
From Andrew, Anchorage, AK If you can't afford to pay someone $6-7 an hour, you don't deserve to have anyone working for you. It's disgraceful to even think of paying them less.
People are entitled to be treated with a minimum of decency in this country. I certainly don't think much of anyone making their own living off the backs of people earning less than this.
Businesses have increased costs because of energy price hikes and inflation? That's supposed to gain my sympathy? Everyone is affected by these things, including the people you don't want to pay what is still an indecent level of pay, and still keeps them well below the poverty limit.
They won’t have a job if you go out of business? I beg to differ, you can get more than that working at a fast food restaurant or a grocery store, with no qualifications, and they’ll give you health insurance too.
From M. Roberts, Irvine, CA Minimum wage is just a dumb idea. Two things that are going to happen as a result of this:
1) Higher unemployment. In tough economic times, businesses are already fighting hard for the relatively fewer dollars floating around in the marketplace. Instead of passing along higher labor costs to consumers, they may just decide to fire workers to keep their costs down. Sorry, but it is just a reality that some jobs may not be worth paying $6.55/hour for. Employers would rather fire people and shift responsibilities to other employees than pass on the increased costs to consumers and risk losing market share.
2) Higher inflation. Times already are tough with price inflation rampant in the economy. Those employers that cannot fire people to keep labor costs down are going to have to pass the costs on to the consumer, which means consumers will pay higher prices. Take for instance WalMart, which employs massive numbers of low-wage workers. How can they not pass on the higher labor costs to consumers? And who are the consumers at WalMart? Often those that make minimum wage. Sorry folks, but a pay raise for minimum wage workers probably will just get eaten up by higher prices.
Minimum wage is just bad policy. The best way to achieve full employment is to allow the market to decide what to pay for labor. Workers are not entitled to a certain wage; they need to demonstrate that they deserve it by providing value to the company. If the company chooses not to pay well, the worker needs to find a company that will. That is the free market at work, and it is best for all of us.
From Marshall, westlake , ohio Even working at $7.25 an hour it is almost impossible to save , buy a house , or even have kids . On the other hand I understand the plight of the small business owner as well .It seems out here in Ohio the wage increas will affect very few as most businesses are paying over that to get good help!!!! Low paid wage earners seldom stay and are unhappy and most business owners I know want good help that will stay so they pay over it .
From Jeff Swint Smith/ Mount Pleasant, Texas It is too low now, and lower-income workers are struggling more than ever. Lower income workers also are far more
likely to have less vacation time, no health insurance benefits, and less paid holidays. The federal minimum wage had not been raised for almost a decade until two years ago. And costs are soaring on basic expenses like food and gas that are a bigger proportion of a low income person's income than of those earning more.
From Nicole Phoenix AZ The government can mandate a minimum wage hike…but all that will do is give some people a raise and cut other people's jobs. If people want a raise they should show their skills. Show how they are a value to the company. If they don't like the wage they are making they can quit and look for another job. Or they can try starting their own business and risk everything just like all the other business owners out there.
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I am sick and tired of wage being an "employer" thing. An "employer" is nothing more than a go-between the "employee"…..and the "consumer". Both of which..is "us".
When we go hunting for, say an ipod, we say to ourselves "BS, I ain't payin' more than X dollars for that item". We automatically assign a "maximum worth" to that item. We WANT the item…but simply refuse to pay more than X dollars for it.
A predetermined percentage of that purchase price eventually filters down to the "janitor" or the "electronic assembler". In other words, the "minimum wage worker".
Those percentages is FIXED. Thus the workers wages are REALLY controlled by how much we as consumers are willing to pay for all of our toys.
When we demand "lower prices", we AUTOMATICALLY low-ball wages.
End of story.