I read where Obama was talking about raising minimum wage by 46%. Is it me or will this not KILL small business/jobs? Small business won't be able to afford paying everybody thus cutting jobs. This could also make a lot of small business close their doors IMO. What does everybody else think?

Obama wants to raise the minimum wage to $9.50 by 2011 and then index it to inflation.

Obama wants to raise the minimum wage to $9.50 by 2011 and then index it to inflation.

 

This will kill the economy.

http://www.bluegrasspreps.com/showthread.php?t=164551

heres a thread

I'm not going to bother reading through that thread, but my feeling is that any raise in the minimum wage inevitably leads to higher prices on everything to compensate for the losses, which guess what - leaves those people in the same situation they were in before. No one really benefits too much from a rise in minimum wage, and because it will be raising prices, if you don't get a cost of living raise, you will suffer.

This will kill the economy.

My wife used to own a small business and yes wages are one of the major contributers to those businesses failing. But also, according to labor standards set forth years before W. took office, the poverty measuring line for the US is under 20K a year. So using the governments standard, if you make $10 per hr. x 40 hrs. per wk. is $400 per wk. x 50 wks. (2 wks. unpaid vacation) is 20K a year gross. Take out federal, state and local taxes you might clear 14 to 16K then pay for health insurance, vehicle insurance and 2 to 3 dollar a gallon gas try living a quality standard of life in this country that most people want. Even if we still owned the business, I see no problem with what he wants to do to the minimum wage.

Economics 101. Wonder if he has taken it?

My wife used to own a small business and yes wages are one of the major contributers to those businesses failing. But also, according to labor standards set forth years before W. took office, the poverty measuring line for the US is under 20K a year. So using the governments standard, if you make $10 per hr. x 40 hrs. per wk. is $400 per wk. x 50 wks. (2 wks. unpaid vacation) is 20K a year gross. Take out federal, state and local taxes you might clear 14 to 16K then pay for health insurance, vehicle insurance and 2 to 3 dollar a gallon gas try living a quality standard of life in this country that most people want. Even if we still owned the business, I see no problem with what he wants to do to the minimum wage.

 

You don't understand then with raising the minimum wage and what its effect will be on the poverty line.

 

Sure you can raise the minimum wage to help get those people below the line up and above it but it won't last long. Since the wages will be rising, the prices of goods and services will rise thus bumping the poverty line up again and then its like the minimum wage increase never happened...

You don't understand then with raising the minimum wage and what its effect will be on the poverty line.

 

Sure you can raise the minimum wage to help get those people below the line up and above it but it won't last long. Since the wages will be rising, the prices of goods and services will rise thus bumping the poverty line up again and then its like the minimum wage increase never happened...

 

I do understand, and I realize that this is an unpopular thing, but, prices of goods and services rise some every year anyway in accordance with inflation and tax laws and other economic stimuli and most people who work regular jobs union and non-union get cost of living increases at least once a year. Some are good some don't cover the increase in inflation but we get them. Why not people who make minimum wage? One thing I don't understand and never have and probably never will is why waitresses at restaurants make a lesser min. wage than someone working in a store or shop. I know it has to do with tips, but tips are bonuses paid to the individual and shouldn't have anything to do with the minimum wage anyway.:confused:

My wife used to own a small business and yes wages are one of the major contributers to those businesses failing. But also, according to labor standards set forth years before W. took office, the poverty measuring line for the US is under 20K a year. So using the governments standard, if you make $10 per hr. x 40 hrs. per wk. is $400 per wk. x 50 wks. (2 wks. unpaid vacation) is 20K a year gross. Take out federal, state and local taxes you might clear 14 to 16K then pay for health insurance, vehicle insurance and 2 to 3 dollar a gallon gas try living a quality standard of life in this country that most people want. Even if we still owned the business, I see no problem with what he wants to do to the minimum wage.

 

First, anyone making $20K a year is not paying a federal income tax. Also, they are most likely getting some sort of assistance like HEAP or food stamps, not to mention a medical card.

Second, if you still owned your business, you should be able to pay whatever wages you want to pay. The gov't should not tell private industry how to pay their hired help. It's none of their business.

Third, every time the minimum wage is raised, as mentioned before, the resulting raise in prices of consumer goods offsets the benefit of the higher wage to those making it. The ultimate loser when higher wages are mandated by the feds is middle class America. We don't get a raise, but the goods and services we use everyday go up. We take it up the wazoo again.

The government sticks their nose in where it doesn't belong on too many things, while letting corruption on Wall Street run rampant, and then use our $ to bail out those crooks. I blame this on Dems and Reps, but the minimum wage issue is mainly a democrat thing.

In general, its the Democrats who clamor for minimum wage increases and the Republicans supporting lower taxes plain and simple..

I do understand, and I realize that this is an unpopular thing, but, prices of goods and services rise some every year anyway in accordance with inflation and tax laws and other economic stimuli and most people who work regular jobs union and non-union get cost of living increases at least once a year. Some are good some don't cover the increase in inflation but we get them. Why not people who make minimum wage? One thing I don't understand and never have and probably never will is why waitresses at restaurants make a lesser min. wage than someone working in a store or shop. I know it has to do with tips, but tips are bonuses paid to the individual and shouldn't have anything to do with the minimum wage anyway.:confused:

 

Bonuses paid by employers are taxed as wages. Tips are not. Ask any of the people on this board that, say, delivered pizzas, if they per penny reported their tips for tax purposes. Also ask that same person what their hourly wage was when including those tips. Now taking that into account, lets raise everyones rate of pay in that pizza joint to 9.50/hr. Also lets say this place is highly successful and makes more than the magical 250,000 in revenue. And lets add that employees here are not offered health insurance. What is Mr. pizza owner now facing? Higher wage, higher taxes and either the cost of providing insurance or a fine of which we still have no idea is going to be. Mr. pizza owner has to raise the cost of his product dramatically or shut his doors. Neither of which benfits Joe delivery driver. A raise of the minumum wage at such a high % will hurt those now working for minumum wage.

I can't believe what I'm reading. It's almost as if we are living in mid-evil times, and the few nobles that are left forbid to give anything to the peasants. Let them eat cake.

It is very obivious that many do not understand how business works.

It is very obivious that many do not understand how business works.

 

Apparantley not even the last Presidential administration.