Thursday, February 21, 2013

What About The Proposed Minimum Wage Increase?

During President Obama's 'State of the Union' Address he proposed increasing the minimum wage from its current $7.25 to $9 an hour.

Was the President out of line considering the minimum wage of $1.60 an hour in 1968 would be $10.56 today when adjusted for inflation?



Check it out for yourself here with the Bureau of Labor Statistics' Consumer Price Index inflation calculator

3 comments:

  1. Minimum wage is an unnecessarily burden on the free market.

    In North Dakota, where Fracking has made millionaires out of (now) former dirt farmers, the influx of new residents to fill the jobs has been too much for the state to handle. Housing starts are light years ahead of much of the rest of the nation, wait times for restaurants are always an hour or more, and WalMart is advertising immediate positions for stock clerks .... starting at $15/hr.

    $15/hr for stocking shelves.

    Why? Because the undeniable law of Supply and Demand rules.

    Any employer (who wants to be successful) will pay what she/he can for each employee. If the new employee proves valuable to the employer, it is in the interest of the business to pay that employee more, but not more than the market forces dictate.

    Similarly, No employee, in his/her right mind, would stay at a minimum wage job for long. Sooner or later, he'll find out that a job across the street or across town is paying more for experienced workers. If his current boss won't pay him more, he moves to the new job.

    If the employee cannot find higher pay across town, that means the market forces in the area are depressed, and no one can pay more for that level of experience.

    Case in point: for 16 years I drove 110 miles/2hrs each way, every day to commute to my job because the pay was worth it!

    What will a newly highered, currently unskilled worker get at ND Walmart in 6/9/12 mths from now? Maybe $18-19/hr?

    The free market *always* works, so long as government stays out of the way.

    ReplyDelete
  2. He's right. No need to raise minimum wage! Besides, illegals get less than minimum because they're illegal to begin with!

    ReplyDelete
    Replies
    1. "illegals"?
      Who's talking about "illegals"?
      Where did that come from???

      Delete

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