Minimum wage is going up. At a time when companies are laying people off and slashing hours... now they are going to have to pay people more? What, exactly, do they think this is going to do?
I have never understood why people think raising the minimum wage (besides at a pace equal to inflation, which is fair - I mean talking big jumps, like this one (10.7%)) will do anyone any good. Sure, maybe for a few months until the inflation of prices trickles down, but in the end it's a zero-gain proposition... and maybe even a losing one.
I decided to look up what it would now cost me to live in my old college apartment. Back in the mid-90s I was working a charming minimum wage job and shared an apartment with two roommates. My share of the rent was $180/mo, and at my awesome $4.25/hr job that meant my rent cost me 42.35 hours of work (gross wages).
But now the minimum wage worker makes a lot more - $6.55/hr. They're much better off, right? Except that same apartment would now cost me $293 for a third of it. That's 44.73 hours of work. A full 2+ hours more than I had to work for the exact same thing.
And it's not just rent. The price of everything goes up. I remember when (oh, I feel old!) movie tickets were $5 at full price. I remember when ice cream came in half-gallon containers (just because the price hasn't gone up doesn't mean it's not costing you more - more and more products are coming in smaller sizes so they don't have to raise their prices).
How does this help? The only way to really help is for people raising families to have above minimum wage jobs and leave the crappy, low-paying jobs for the people they're intended for - teenagers and college students. The former have parents (hopefully) to pay for things like housing and food, and the latter are traditionally supposed to be poor and miserable. It reminds them why they're going to school.
And, in the long run, I think huge hikes in the minimum wage hurt a lot of people. Prices go up, and people who weren't at the bottom of the pay scale are now much closer. People who have worked hard to get above the minimum wage find themselves squashed back into it (believe me, if you'd worked your way up to $7.25/hr you're not getting a 10% pay increase - you'll now be making the same as the new guy, and that sucks). I truly fail to see how this is a remotely good idea.
I have never understood why people think raising the minimum wage (besides at a pace equal to inflation, which is fair - I mean talking big jumps, like this one (10.7%)) will do anyone any good. Sure, maybe for a few months until the inflation of prices trickles down, but in the end it's a zero-gain proposition... and maybe even a losing one.
I decided to look up what it would now cost me to live in my old college apartment. Back in the mid-90s I was working a charming minimum wage job and shared an apartment with two roommates. My share of the rent was $180/mo, and at my awesome $4.25/hr job that meant my rent cost me 42.35 hours of work (gross wages).
But now the minimum wage worker makes a lot more - $6.55/hr. They're much better off, right? Except that same apartment would now cost me $293 for a third of it. That's 44.73 hours of work. A full 2+ hours more than I had to work for the exact same thing.
And it's not just rent. The price of everything goes up. I remember when (oh, I feel old!) movie tickets were $5 at full price. I remember when ice cream came in half-gallon containers (just because the price hasn't gone up doesn't mean it's not costing you more - more and more products are coming in smaller sizes so they don't have to raise their prices).
How does this help? The only way to really help is for people raising families to have above minimum wage jobs and leave the crappy, low-paying jobs for the people they're intended for - teenagers and college students. The former have parents (hopefully) to pay for things like housing and food, and the latter are traditionally supposed to be poor and miserable. It reminds them why they're going to school.
And, in the long run, I think huge hikes in the minimum wage hurt a lot of people. Prices go up, and people who weren't at the bottom of the pay scale are now much closer. People who have worked hard to get above the minimum wage find themselves squashed back into it (believe me, if you'd worked your way up to $7.25/hr you're not getting a 10% pay increase - you'll now be making the same as the new guy, and that sucks). I truly fail to see how this is a remotely good idea.