The positives versus the negatives

[kraft-t]

Raising the minimum wage

"The negative version is that many jobs will be lost and the economy will tank"  Quote Herman Cain

" the positive versions that millions of american will have more spendable income which will be positive for retailers and manufacturers"   Bill Clinton

After that raise in minimum wage, the economy made huge gains during the clinton boom.

I assume that Herman Cains Godfathers prospered as well.

[hardnox]

The Hermanator is the former lobbyist for the restaurant association.

I know that if you're one of the guys with $50 million borrowed and 20 or 30 fast food franchises that scares the daylights out of you but honestly I don't see it as a huge problem. If labor is 30% of your cost and it rises 15% (not all is minimum wage) you're going to have to raise prices 5%. But so is everybody else.

Whatever the elasticity of demand is, there would be some slight drop in aggregate demand, except for the fact that Taco Bell employees could actually afford to eat there, or eat one more meal a week there.

If there's somebody who I would worry about it would be small low skill manufacturing outfits that are under pressure from foreign competition.  However the outfits that fit that description tend to pay a bit more than minimum, except for their temp workers. And in those cases they're paying the temp agency another 20%.

Just don't see it as huge.

Like anything that is cahnged, there will be somebody hurt. Maybe US produce growers who compete with imported produce. But again, the ones who are paying above board tend to already pay a little more than minimum.

BTW, how many of those min wage folks would face a reduction in food stamp allotments and Obamacare subsidies? Is that a bad thing?

[wehav]

The negative is that as unskilled labor gets more money and inflation rises to wipe out their increase.  In addition what you might call an unintended consequence (if you're a liberal) is you encourage people to stop educating themselves and settle for a substandard living.  That is if you're a liberal, if you're a conservative you know that's what liberals want, more uneducated to keep the Democrats in power.

[BA Deere]

Unless the minimum wage is raised way above $15/hr it probably won`t have much effect, it won`t be competitive with welfare.   There are employers that have no qualms now for $10/hr cash, with now unemployment fica contributions...bypassing the taxman is a win-win for both, as long as they don`t get caught.  But, with a higher min wage, the rewards will become even more attractive.

Switzerland rejected a $25/hr min wage, I say we need to raise the minimum wage to $25  and then get rid of all government safety-net spending no unemployment, no food stamps, no child support, no wica, no 0bamacare...just a flat floor of a $25 minimum wage for everyone.

http://money.cnn.com/2014/05/18/news/economy/switzerland-minimum-wage-vote/

[KNAPPer]

According to the history of Minimum Wage increases, our economy has tanked and many jobs were lost 11 times since 1991. Funny, I don't seem to remember that happening so often?

http://www.dol.gov/whd/minwage/chart.htm

[Taylor ECIL]

According to a paper written in 2000 by Fuller and Geide-Stevenson, 73.5% (27.9% of which agreed with provisos) of American economists agreed that a minimum wage increases unemployment among unskilled and young workers, while 26.5% disagreed with this statement.^[104]

Some idea of the empirical problems of this debate can be seen by looking at recent trends in the United States. The minimum wage fell about 29% in real terms between 1979 and 2003. For the median worker, real hourly earnings have increased since 1979; however, for the lowest deciles, there have been significant decreases in the real wage without much decrease in the rate of unemployment. Some argue that an increasing minimum wage might reduce youth employment (since these workers are likely to have fewer skills than older workers).^[105] Furthermore, some economics research has shown that restaurant prices rise in response to minimum wage increases.^[106]

Overall, there is no consensus between economists about the effects of minimum wages on youth employment.^[107]

According to liberal logic, this debate is over. 73% of the experts agree that minimum wage increases unemployment.

[Democratforlife]

There is nothing negative about a $20 minimum wage. Nothing. Why are you only for $10?

[r3020]

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@kraft-t wrote:

Raising the minimum wage

"The negative version is that many jobs will be lost and the economy will tank"  Quote Herman Cain

" the positive versions that millions of american will have more spendable income which will be positive for retailers and manufacturers"   Bill Clinton

After that raise in minimum wage, the economy made huge gains during the clinton boom.

I assume that Herman Cains Godfathers prospered as well.

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Detroit needs to raise their minimum wage to $25-30/hr, collect all of the extra tax revenue so they can pay their bills.

[kraft-t]

For some reason it is so important to the righties to keep wages low. MY Gawd even some other workers might get a raise. Wouldn't that be a catastrophe?

A rising tide raises all ships, so they say." But not if I have anything to say about it" sez the righties.

[Taylor ECIL]

What percentage of the population is being paid minimum wage?