Should Congress increase the Minimum Wage?

IT’S NOT THAT SIMPLE

(1)

Let’s say that the minimum wage is increased from $7.25/hr to $9.25/hr.

This shall be the consequence.

Manufacturers and retailers shall know that many Americans will suddenly

have more money in their pocket. So prices of products shall increase.

This is what happened when GW Bush issued the across-the-board tax

cuts in 2001. He flooded America with more cash to people’s pockets.

But guess what – prices of commodities rose.

So you didn’t have a net gain. It went into one pocket and out the other.

During Clinton most prices, of items that you purchase, in the supermarket

for example, remained steady. Clinton did not cut taxes.

Conclusively, flooding the economy with more money causes prices of

products to increase.

(2)

That being said, if there were no minimum wage requirement employers

would be squeezing workers to death with incredibly low wages.

So a minimum wage is a reasonable requirement. But it requires fine tuning.

Any increase in the minimum wage must be incremental (small) so as to avoid

the effect noted above (known as inflation).

Keep in mind that there's more to it than what meets the eye. Higher minimum wage doesn't directly translate to more money for ordinary people. Corporations don't just give all their employees more money if the minimum wage goes up. Rather, they lay off workers to compensate. Thus, an increase in minimum wage could lead to more unemployment. Congress would be disinclined to pass this in fear that it would drive up unemployment rates. Furthermore, less employment lowers production. If production goes down, businesses let even more workers go. This sort of thing could lead the economy into a devastating spiral.

No. I believe that it is high enough. An adult who can't get a better paying job because they don't have any skills should take whatever classes they can do get those skills. Anything having to do with computers and the medical field are good choices. It's up to the individual to do what is needed to make a better life for him/herself. In this day and age a high school diploma just doesn't cut it.

The higher the minimum the more teenage unemployment,Some jobs are not worth a higher wage.

No. Minimum wage should be abolished. The free market should set price levels for labor.

Why do you want more unemployed people on welfare. The last time you did that many people called laid off. Silly Liberal.

republicans are for the rich and for the rich to stay rich they will never do anything for the poor people to have anything, but they will vote for an increase in their salary....

YES! We should at least be able to survive on minimum wage.