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So an increase in the minimum wage will prevent parents from sending their children to 'children homes',decrease crime,(?) and make them smarter?...
Judy, gimme a bruckin' fake.

Judy, Dream on. Raising the minimum wage will change very little except we will ALL have to pay more for goods and services since most companies will pass the cost of this raise onto the consumer.

bunny, I understand that raising the minimum wage raises prices. However, not raising the minimum wage has its costs also. These costs are more difficult to quantify than prices, but that makes them none the less real. A person who makes more money can spend more money, putting more dollars into the local economy. Raising the minimum wage means that it is less difficult to feed your family; maybe two full-time jobs per household is enough, rather than three or four. Raising the minimum wage raises tax revenues without raising tax rates. Finally, a person ought to be able to support at least himself or herself with the basics by working one 40-hour a week job. Right now, that isn't possible in most places. Housing costs have nearly doubled in the last ten years, health-care costs have skyrocketed while insurers raise premiums and deductibles, and gasoline prices remain volatile and unpredictable.

bunny, I understand that raising the minimum wage raises prices. However, not raising the minimum wage has its costs also. These costs are more difficult to quantify than prices, but that makes them none the less real. A person who makes more money can spend more money, putting more dollars into the local economy. Raising the minimum wage means that it is less difficult to feed your family; maybe two full-time jobs per household is enough, rather than three or four. Raising the minimum wage raises tax revenues without raising tax rates. Finally, a person ought to be able to support at least himself or herself with the basics by working one 40-hour a week job. Right now, that isn't possible in most places. Housing costs have nearly doubled in the last ten years, health-care costs have skyrocketed while insurers raise premiums and deductibles, and gasoline prices remain volatile and unpredictable. The lowest income workers need a raise of the minimum wage. $6.15 an hour is a good start, but only a start.

Beadbaby,

Sorry, but I disagree. First of all, the number of people actually affected by the minimum wage increase is very small (for some reason less than 10% comes to mind).

"A person who makes more money can spend more money, putting more dollars into the local economy."

Sure, the person is making more, but is it going to be offset by the higher prices he/she will pay?

"Raising the minimum wage raises tax revenues without raising tax rates."

How many of these people on minimum wage actually make enough to PAY taxes?

I'd welcome any links you have to support your statements. I base my thoughts on the obvious affect raising the minimum wage will have on small business (which, incidently employs 52% of people in the US).

You might want to read the following which cites some studies done regarding the affects of raising the minimum wage. http://www.house.gov/jec/cost-gov/regs/minimum/against/against.htm

Just a thought but a minimum wage increase and a 'living wage' are two very different things. I think the last number floated around for a living wage was over $12 an hour.

I've seen a lot of good arguments both ways but I'm generally in favor of letting the market decide what wages should be paid.

I think that a major increase in the lowest paid worker's pay will hurt the middle class, will make these workers even less competitive with workers elsewhere in the country and the world, and will deter businesses from locating here.

Of course a 100% raise would be good for those working for minimum wage, but for the rest of us, I don't think the issue is settled.

To put it bluntly, if you are working for minimum wage, there is often a reason for that.

Another question I have for those who seem to think raising the minimum wage is the answer: What does an employer do with a worker who has earned raises over a period of time and is now making what a new hire makes? Does it seem fair to keep the experienced worker at a wage now equal to what an unexperienced worker makes? Any answers anyone?

nitpicker: In response to your statement, "To put it bluntly, if you are working for minimum wage, there is often a reason for that." I see workers every day that weren't even worth the minimum wage they were being paid. Now, they are getting a raise for their incompetance! Personally, I'd much rather see some of my tax money going to training programs for workers who show some ambition.

"Personally, I'd much rather see some of my tax money going to training programs for workers who show some ambition."

Congratulations, bunny, your wish has come true! It's called "the community college system!" Among all the campuses GTCC has, people can get training to be anything from a landscaper or welder to a paramedic or chef to airplane maintenance to set design. And, of course, for those who didn't finish high school, who don't speak English well, or who are brain injured or mentally retarded, we have programs for them too! Want to start a business of your own? Want to take your first two years of college cheap? Check out GTCC or other fine area community colleges.

Beadbaby:
I am certainly aware of GTCC and the many other fine community colleges available to these students. I assumed EVERYONE knows about these. My comment regarding "boot camp" schools was more meant to apply to middle school students, where I personally have experience as a teacher. I am one of those "decent" teachers who got tired of "babysitting" the discipline problems that interferred with doing the job for which I was hired.

Now, back on topic: The affects of a minimum wage increase. Today, my assistant brought in four letters sent to our company by other companies with which we do business. I have put excerpts of these below:

1) "Due to the minimum wage increase, we are facing increased costs of labor which will increase our cost of production. After careful consideration, we find we are unable to absorb all of this cost. We regret we have no choice but to increase the price of our products. The increases, per the attached sheet, reflect the additional wage costs and all associated costs we are required, by law, to pay."
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2) ".... Our net cost as a result of this is $1.00 plus an average of approximately $.82 in payroll-related expenses (FICA, FUTA, SUTA, Worker's Comp, etc.). As a result of these unfortunate factors, we are forced to increase our billing rates by 10% effective immediately."
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3) "I am sure you are aware there has been an increase in the minimum wage. We are a small company, and this increase will dramatically affect us. We have had to make some very difficult decisions. In an attempt to keep prices low and remain competitive, we have first reduced our staff as much as possible. As a result, production time will be extended several days. Please remember to allow for this longer lead time when you place your order.

Unfortunately, in order for us to continue to operate, we must also increase the cost of our product. Therefore, effective January 1, 2007, our prices will reflect a 4% increase....."
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4) "Effective immediately, our labor costs will increase $1.85 per hour for Level I workers. Please adjust your projects to accomodate this change........."
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Already we are seeing great things coming from the minimum wage increase, aren't we?

Bunny,

Your comments regarding paying an experienced worker what the new-hire now makes is a very real concern. Early in my worklife, I actually had that happen to me. And boy, was it frustrating and discouraging. Here I had to train somebody making the same as I was.

As far as rewarding incompetence, I've seen plenty of that on my job. In an effort to providing living wages, the lowest paid folks get pay increases. It just happens that these lowest paid folks are generally the least experienced or least productive. The folks who are more experienced and productive are not far ahead of these other jokers to begin with. With these raises, suddenly you take all incentive away for the productive employees.

That is one very real issue in minimum wage increases and I'm glad you brought it up.

nitpicker,

Thank you. I am very concerned that most people favoring wage increases just look at one aspect of this issue (i.e. more money for min. wage workers) and haven't thought about other complications (e.g. what to do about more experienced workers). Thanks for your comments.

It seems that every so often we get the same LTE concerning raising the minimum wage. That said, I'll make this short and sweet this time.

Study your economics with regard to artificial price floors in free market economies and then tell me if raising the minimum wage is such a good idea? Ignorance must truly be bliss.