Minimum Wage Boost Races Through House

[Beyond Belief]

WASHINGTON (AP) -- The House voted to raise the federal minimum wage Wednesday for the first time in a decade, to $7.25 an hour, as majority Democrats marched briskly through their 100-hour agenda at the dawn of a new Congress.

Ebullient Democrats stood and cheered as the final vote - 315-116 - was announced.

"For 10 years the lowest-paid Americans have been frozen out," said Rep. George Miller of California, berating Republicans who had refused for years to allow a vote on a stand-alone minimum wage increase.

"The little guy is not going to be forgotten any longer," said Rep. Bill Pascrell, whose district includes gritty Paterson, N.J. He estimated the increase would mean an additional $4,400 a year for a family of three.
http://hosted.ap.org/dynamic/stories/C/CONGRESS_RDP?SITE=FLTAM&SECTION=HOME

 

[txsvicki]

It's about time.

 

[mindi77]

In november ohio raised the minimum wage to 6.85 so does the 7.25 go toward the people here in ohio also. I am sure that most could use it.

 

[montana_16]

Good. The middle class and the poor have been being kicked in the shins for too long. At the sa me time the"haves" and the "have mores" have been getting more and more and more......

 

[julianne]

In november ohio raised the minimum wage to 6.85 so does the 7.25 go toward the people here in ohio also. I am sure that most could use it.

Yes, it would apply if it gets passed. It's the federal minimum wage, so all businesses in all states would have to comply. I'm 99% sure, anyway----someone correct me if I'm wrong.

ETA: Oh--it's already passed? So, it's a done deal???

 

[mindi77]

Yes, it would apply if it gets passed. It's the federal minimum wage, so all businesses in all states would have to comply. I'm 99% sure, anyway----someone correct me if I'm wrong.

ETA: Oh--it's already passed? So, it's a done deal???

Thanks for the info. That will be great, I am sure a great help for many

 

[Pepper]

I may be the lone dissenter here, but all that happens with a raise in the minimum wage is cause prices to increase. People that earn MW will always be at the bottom of the pay ladder. The only way to rise above it is to increase their skills to make them more valuable in the workplace.

In California, the minimum wage is now $7.50 effective Jan. 1. On Dec. 31 we saw the menu at our favorite (cheap) restaurant change, adding $1 or more to every item.

Another problem is the workers will see very little of that raise. I work for a company that employs many MW workers. Here's how it works. Let's say the worker gets a $1/hr. raise. He only sees $.90 because the other $.10 goes to SS & Medicare taxes. This assumes he pays NO FEDERAL OR STATE INCOME TAX. But that same $1/hr raise costs the employer $1.50. This is because the employer also pays $.10 in Medicare & SS taxes, PLUS $.40 in worker's comp insurance!

Our company provides cleaning services for new construction. In order to pay the additional $1.50 per hr. we will either have to raise our rates, or make sure our workers get more done in less time. So, how does this really help the workers that now have to pay $.50 more for their favorite burger?

The only people that are truly helped by this raise are the worker's comp companies and the government, because they get the gap money - in our case $.60/hr.

The rise in minimum wage is inflationary, and effectually eliminates low paying entry level jobs for high school and college kids.

 

[JanetElaine]

Can someone tell me if the federal minimum wage raise goes for all businesses? Because I missed out on the Ohio raise since that one doesn't apply to businesses which make less than $250,000. And indeed the prices did increase. But my wage didn't go up. Go figure.

 

[Pepper]

I am against any minimum wage. The inflationary aspect is just like a dog chasing its tail - totally unproductive.

 

[calus_3]

I may be the lone dissenter here, but all that happens with a raise in the minimum wage is cause prices to increase. People that earn MW will always be at the bottom of the pay ladder. The only way to rise above it is to increase their skills to make them more valuable in the workplace.

In California, the minimum wage is now $7.50 effective Jan. 1. On Dec. 31 we saw the menu at our favorite (cheap) restaurant change, adding $1 or more to every item.

Another problem is the workers will see very little of that raise. I work for a company that employs many MW workers. Here's how it works. Let's say the worker gets a $1/hr. raise. He only sees $.90 because the other $.10 goes to SS & Medicare taxes. This assumes he pays NO FEDERAL OR STATE INCOME TAX. But that same $1/hr raise costs the employer $1.50. This is because the employer also pays $.10 in Medicare & SS taxes, PLUS $.40 in worker's comp insurance!

Our company provides cleaning services for new construction. In order to pay the additional $1.50 per hr. we will either have to raise our rates, or make sure our workers get more done in less time. So, how does this really help the workers that now have to pay $.50 more for their favorite burger?

The only people that are truly helped by this raise are the worker's comp companies and the government, because they get the gap money - in our case $.60/hr.

The rise in minimum wage is inflationary, and effectually eliminates low paying entry level jobs for high school and college kids.

Wrong....that isn't all that it does.

It stiffles the economy and prevents new job generation. Employers have to take into account all payroll related items when hiring someone. Most payers of minimum wage are small businesses that don't have much margin. So now that business that was thinking of hiring someone can't afford the extra salary and that person doesn't get hired.

But the bottom line is that if you make minimum wage for more than a year, you are behaving like a LOSER. Minimum wage is for high school students and people who can't put sentences together. I am sure that there are exceptions...for instance a wife working at Wal Mart to make some extra Christmas cash. However, if your primary income is derived from minimum wage, you are a sorry lot. If you are raising a family on minimum wage, shame on you. Even the undeducated should be making more than minimum wage doing SOMETHING. Minimum wage for primary earners is for people who quit trying a LONG LONG time ago.

Well, that should ignite the kindling!

Cal

 

[BarnGoddess]

Minimum wage for Colorado increased to 6.85 as of Jan 1. We were paying a girl 6.50 to wash and clean cars. Her mother works here also. They both are useless and a big waste of time and money. Daughter just got her first cell phone. Her first month's bill was for 6000 minutes. At least half of them were spent talking on the phone here. The boss is blind, but that's another story. I had to add .15 to her paycheck. I told the boss to cut her hours and we'd be even as we pay her to goof off most of the day. Can't say anything that she doesn't like either. Runs to mommy and complains. The two are giving me a nervous breakdown.

As to Federal minimum wage applying over State minimum wage. IIRC, it originally had to do with interstate business. For instance, a car dealership (like mine) gets cars and trucks in from out of state. We also sell to customers who live in states other than Colorado. I would guess a little mom and pop craft shop who made and sold items only locally and didn't ship out of state would be exempt from Federal minimum wage, but I may be wrong here.

Until this new law went into effect in Colorado, all our workers were paid higher than minimum wage. As slow as business has been, I would hope my boss will consider cutting the hours of those who stand around doing nothing half the day.

Now the Senate may have to approve the House bill, I'm not sure here. Then the President has to sign it in order for it to become a law.

 

[reb]

Hello.......

About......

F***ing.......

Time!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Nova]

I am against any minimum wage. The inflationary aspect is just like a dog chasing its tail - totally unproductive.

What Pepper and Calus aren't telling us is that workers who earn more can also spend more. So the effect of minimum wage law on the economy is more complicated than simplistic, pro-free market theory might suggest.

I realize this is a complicated issue with plenty of "experts" on both sides. But it's funny how countries and states with higher minimum wages tend to have wealthier economies.

 

[JanetElaine]

You're right, Nova. In fact, since my minimum wage didn't go up but prices did, I now have 'double less' to spend. Now in our case it isn't a killer issue, since I am ''just the wifey making some extra bucks'', but it still sucks. No extra's for us for a while - I could list a few things we would have been able to buy/get if my wages had increased that would have helped our local economy, too.

Plus, for some people (like me) 90 cents an hour extra is a big deal. I guess some people make so much money they don't appreciate the little stuff anymore.

 

[JanetElaine]

Minimum wage for Colorado increased to 6.85 as of Jan 1. We were paying a girl 6.50 to wash and clean cars. Her mother works here also. They both are useless and a big waste of time and money. Daughter just got her first cell phone. Her first month's bill was for 6000 minutes. At least half of them were spent talking on the phone here. The boss is blind, but that's another story. I had to add .15 to her paycheck. I told the boss to cut her hours and we'd be even as we pay her to goof off most of the day. Can't say anything that she doesn't like either. Runs to mommy and complains. The two are giving me a nervous breakdown.

So? You have two people with lousy work ethics there. Minimum wage didn't do that to them.

As slow as business has been, I would hope my boss will consider cutting the hours of those who stand around doing nothing half the day.

Pardon my French, but if he doesn't he is a dumbass who shouldn't have his own business. Slow business or not, people standing around doing nothing half the day shouldn't be there. Boss-man is enabling lousy work ethics.

 

[Details]

What Pepper and Calus aren't telling us is that workers who earn more can also spend more. So the effect of minimum wage law on the economy is more complicated than simplistic, pro-free market theory might suggest.

I realize this is a complicated issue with plenty of "experts" on both sides. But it's funny how countries and states with higher minimum wages tend to have wealthier economies.

The same exact scare tactics are used every time - and every time, they don't come true!

For a low blow though - I think it's good to have a minimum wage high enough that it's worth working rather than collecting welfare! :razz:

Or, at least, not too much worse economically to work, than to collect welfare. No matter how determined you are, it's hard to take a pay cut in order to start working (as my mom did when she finally got us off welfare!).

 

[JanetElaine]

The same exact scare tactics are used every time - and every time, they don't come true!

Would you mind elaborating?

Thanks.

 

[Details]

Would you mind elaborating?

Thanks.

Every time, they say prices will go up, people will be fired, small businesses will go out of business - and every time there is either no, or a very minimal price increase (quite possibly merely inflation - I've never seen a price increase myself), the jobs are still there, and the only businesses that go out of business were already going there.

I heard the classic ad - a small pet store owner talking about how he would have to raise prices if min wage goes up, and he can't afford to or his customers will go to his competitors! Of course, he doesn't mention that his competitors also have to pay the new minimum wage, so their prices will go up, and everything will be equal as always.

 

[Crow_Ascending]

***What Pepper and Calus aren't telling us is that workers who earn more can also spend more. So the effect of minimum wage law on the economy is more complicated than simplistic, pro-free market theory might suggest.****

How are workers who earn more going to buy 'more' when the prices go up for what they want to buy? The little bit more they make at Costco will be spent at the grocery store to cover the grocer's increase.

 

[JanetElaine]

Of course, he doesn't mention that his competitors also have to pay the new minimum wage, so their prices will go up, and everything will be equal as always.

Ah okay, I get what you are saying. I was thinking in a different direction. Thanks for 'splaining.

Crow, you are right - but what about people like me who's minimum wage did NOT go up, yet the prices here did? 'That can't be good'. But prices and wages going up is the way the world turns. That has happened since the start of.... well, wages and prices I guess. lol