Raise minimum wage...we need fewer people working...

[billc]

From one of my favorite economists...Walter Williams on why the idiots in congress calling for a raise in the minimum wage are putting people out of work...

http://newsbusters.org/blogs/walter...lumn-how-hiking-minimum-wage-hurts-teens-blac

In his State of the Union address, President Barack Obama proposed raising the minimum wage from $7.25 an hour to $9 an hour. That would be almost a 25 percent increase. Let's look at the president's proposal, but before doing so, let's ask some other economic questions. -

Are people responsive to changes in price? For example, if the price of cars rose by 25 percent, would people purchase as many cars? Supposing housing prices rose by 25 percent, what would happen to sales? Those are big-ticket items, but what about smaller-priced items? If a supermarket raised its prices by 25 percent, would people purchase as much? It's not rocket science to conclude that when prices rise, people adjust their behavior by purchasing less.

This behavior in economics is known as the first fundamental law of demand. It holds that the higher the price of something the less people will take and that the lower the price the more people will take. There are no known exceptions to the law of demand. Any economist who could prove a real-world exception would probably be a candidate for the Nobel Memorial Prize in Economic Sciences and other honors.

University of California, Irvine economist David Neumark has examined more than 100 major academic studies on the minimum wage. He states that the White House claim "grossly misstates the weight of the evidence." About 85 percent of the studies "find a negative employment effect on low-skilled workers." A 1976 American Economic Association survey found that 90 percent of its members agreed that increasing the minimum wage raises unemployment among young and unskilled workers. A 1990 survey found that 80 percent of economists agreed with the statement that increases in the minimum wage cause unemployment among the youth and low-skilled. If you're looking for a consensus in most fields of study, examine the introductory and intermediate college textbooks in the field. Economics textbooks that mention the minimum wage say that it increases unemployment for the least skilled worker.

 

[K-man]

For what it's worth, our minimum wage is $16 an hour, although our cost of living is higher as well, as would be expected.

http://www.numbeo.com/cost-of-livin...jsp?country1=United+States&country2=Australia

:asian:

 

[ballen0351]

For what it's worth, our minimum wage is $16 an hour, although our cost of living is higher as well, as would be expected.

http://www.numbeo.com/cost-of-livin...jsp?country1=United+States&country2=Australia

:asian:

Holy cow stuff expensive in your neck of the woods

 

[jezr74]

For what it's worth, our minimum wage is $16 an hour, although our cost of living is higher as well, as would be expected.

http://www.numbeo.com/cost-of-livin...jsp?country1=United+States&country2=Australia

:asian:

We have lived here now for around 16 months. This is what we have been able to compare so far.

Shopping\Groceries - Around the same, maybe a little more expensive.
Clothing - Generally Cheaper
Eat out - Generally cheaper, but tipping can almost puts it on par.
Alcohol (from liquor store) - much much much cheaper.
Drinks (Pub, Bar, Cafe, Restaraunt) - on par, more expensive after tipping.
New Cars - A whole lot cheaper
Electronics - cheaper. Depends on the manufacturer.
Hardware - cheaper. Depends on the manufacturer. (I got a Webber Q for $300 here, is around $700 in aus)
Medical - RIDICULOUSLY more expensive.
Accommodation, Hotel, Motel etc - About the same. Taxes can tip it over.
Petrol\Gas - Heaps cheaper

That might give a general idea, things that take a while to get used to is tipping, and prices are generally not tax inclusive. And you can get hit with multiple taxes after purchase, especially with accommodation. The listings on that site seem a little off, not sure if it is looking at certain parts of the US or maybe it doesn't include tax, and with some I guess you need to add around 18% for tipping.

 

[CanuckMA]

Oh Hell, why don't we get rid of wages altogether. Probably reach full employment then.

 

[jezr74]

This is how the poor get poorer and the rich get richer.

I think the 2nd amendment right needs another amendment and add corporation with government.

Sent from my Nexus 7 using Tapatalk HD

 

[Bob Hubbard]

Raise min wage. Prices will go up. Don't raise min wage. Prices will still go up, just not as fast.

 

[jezr74]

Just trying to understand why it feels like they apply this as a economic problem to one group of earners as opposed to another. Let alone members of the board getting millions of dollars each year in bonuses, I think that's more likely whats driving prices up over time. Cutting jobs raising prices for lining the pockets of the wealthy, I believe the gap between the poor and the rich is getting bigger each day.