Raise the minimum wage. Save $7 billion in tax dollars.

FACT: In January 2014, 13 states raised their minimum wage; since then these states added more jobs and have lower unemployment rates than the 36 states that did not raise the minimum wage.

FACT: The U.S. Government could save $7 billion dollars if companies just paid employees a higher minimum wage.

 

This is only part of the picture though--what about price increases for consumers?

 

Look at FACT #1: more jobs and lower unemployment rates.

Why were there more jobs? Obviously Keynesian economics works: higher minimum wage meant more spending which meant more demand for goods, which meant businesses ramped up, produced more to meet the demand, and made more money. So why ruin it with higher prices?

 

Minimum wage more pure libsocialist ignorance:
1) makes it illegal to employ people not worth minimum wage
2) raise prices for poor people who often shop where minimum wage folks work
3) speeds up automation and replacement of minimum wage jobs
4) teaches people that you get ahead with govt violence rather than being worth more
5) raises prices, reduces demand, and thus reduces employment
6) makes American workers even less competitive with foreign workers
7) makes a huge % of work force minimum age workers with no incentive to improve their skills.



One of the simplest and most fundamental economic principles is that people tend to buy more when the price is lower and less when the price is higher. Yet advocates of minimum wage laws seem to think that the government can raise the price of labor without reducing the amount of labor that will be hired.

Thomas Sowell, "Minimum Wage Madness," September 17, 2013

 

Keynesian economics worked then, not as sure about now--as with most things about economics, there is a curve. Do we have the ability to up production now as we did back then, and to what extent to you think it was more the arrival of a wider variety of businesses/products that did it?

I mean, back in the old days if a poor person got more money, they might spend it eventually on a car, or on some gadget. Nowadays most people, even those making minimum wage, have these things. What's left to be reached?

My thought on this is higher quality products, which would likely be priced higher.

 

impossible!!! When ???? How????

 

Fact #1 is a correlation which does not prove causation. The reality is that more jobs would have been created if the minimum wage had not been increased. Econ 101.

Raising the min wage results in higher consumer prices which results in less products being purchased and fewer employees required. Businesses accept risk for acceptable profit margins. Those profit margins are maintained. Again Econ 101.

 

The reason for that increase was to account for the inflation of the US dollar. The value of that minimum wage before they increased it had steadily been decreasing, so naturally the governments increased the numerical value to account for that loss of value per dollar. This is what led to the increase in production, not the manner in which you present it (it's not Keynesian economics, its just accounting for the inflation, which boosted production because we aren't changing wages based on the value of the dollar 24/7)

 

Yes and it results in kiosks and robots like Pepper taking over most of the minimum wage jobs!! Does anyone know why liberals want this??

 

I had a dream.


I had dreamt that the jobs farmed out to, & outright moved to, Second World Economy countries, due primarily to avoiding high corporate income taxes started to realize that their products could once again, be produced domestically @ a higher degree of quality & within required production deadlines, began coming back to America.


The country again realizing that even with just a High School education, ...a far higher level I'll add than the paces these jobs went to... Citizens should be able through their hard work, support a family.


I dreamt that an adjustment/rewriting of the Minimum wage scale was made, giving entry level manufacturing employees $10.00/hr., Service industry w/o tips, saw their minimum raised to $8.00/hr., With tips began realizing a boost to $7.25/hr. Agricultural workers saw an increase to $9.00/hr.


These changes saw a predicted slight raise in consumer costs, but well within the margin allowing for further savings/investment by the working class.

 

insane!!!!! you want to raise wages here to attract business to come back???????? If you want to be intelligent dream of eliminating the corporate tax, unions, and 30 million illegals to bring jobs back with huge upward pressure on wages.

 

Raising wages raises prices which drives off the poor and most notably minorities. It is a way white liberals covertly pursue being segregated from minorities and the poor.

 

Well then. Win-Win then yeah?

 

Please supply a link that shows increased jobs and lower unemployment rates are a direct outcome from increased minimum wages?

And, no matter how much you pay for minimum wage, and let's say it's $25/hour, when the dust settles and ALL other wages in the entire wage scales are increased proportionately, when inflation is on steroids, when US companies become less and less competitive, at that point in time, ALL workers earning tomorrow's minimum wage will have the identical problems they have today and government will need more tax dollars to provide necessary welfare...

 

wages in America are super high because of new inventions that make labor very productive. If you want them higher you must encourage the supply of new inventions not a free lunch in the form of a minimum wage law which will do nothing.

 

Obviously, forcing MW higher simply increases the cost of doing business in the USA, does not increase productivity, creates inflation, and decreases US competitiveness...

 

Yes. And increases unemployment for those who most need entry level jobs.

 

and makes a big chunk of workforce minimum wage workers with no incentive to improve their skills!!

 

Do you have a source for those claims?

 

sure, the law of supply and demand!! It turns out that the higher price or wage the more employers hire!! Liberals have repealed the basic principle of economics!!

 

The 2% Obama economy based on Obamanomics is living proof.

 

You claimed:

So unless you have a source that these 13 states added more jobs then the states that did not raise minimum wages, then your posting lies and false claims. So, I ask you again, what is your source?

 

the law of supply and demand dictates that when price goes up demand goes down. This is why there are fewer rolls royces than a chevys. When you raise the price of labor less labor is demanded. Now, can you tell us why you see fewer rolls royces on the road than Chevys??? Sadly, please note that when liberals and conservatives meet the conservatives must run a kindergarten.

 

I wanted the individual to admit that he made all this up, and is posting lies. Of the 10 states for increasing jobs from 2011 to 2016, 5 states have not raised their minimum wages. four states have minimum wages less then or just above a dollar or just above higher then the federal requirement. Only one states has a minimum rate that is much higher then the federal requirement. That state is California, But those added jobs were mainly in the Tech sector, and not a result of an increased minimum wage.

Now, I will post my source when the OP posts his.

 

As employers struggle with higher cost of doing business they will tighten the purse strings which can certainly mean reducing labor...

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Using your logic why not just make MW $100/hour?