Posted on 06/20/2012 12:23:55 AM PDT by 2ndDivisionVet
Minimum wage has been a topic of debate ever since the creation of the Fair Labor Standards Act in 1938. Just this month, U.S. Rep. Jesse Jackson, Jr. of Illinois has attempted to once again bring the discussion into a modern context. Jackson introduced a bill to Congress that calls for an immediate raise of the federal minimum wage up to $10 from its current standing of $7.25, according to the New York Times.
This may seem like an extreme jump, but this increase was proposed in Washington, D.C. on Wednesday, June 6, 2012. In fact, President Obama stated back in 2008 that he would increase the minimum wage to $9.50 by 2011. This, as with many noble initiatives Obama had in mind to carry out during his first term, have been deemed a lost cause considering the current congressional stalemate.
In relation to this dilemma, it is likely that Jackson’s efforts will fail, especially considering the bill lacks the support of those working for such outdated prices, who don’t believe a wage increase is justified.
“I think I’m getting enough money for what I do. I mean, making food doesn’t really deserve a huge paycheck,” said Jacob Yakoubek, a speech, language and hearing sciences junior at the UA who has worked at IQ Fresh in the Student Union Memorial Center for nearly two years. After three pay raises since his start, he is making $8.25 per hour. When asked whether he could sustain himself without the help he receives from his parents for his living expenses, he said, “I could survive, it would just suck. I wouldn’t be able to afford any fun stuff, God forbid a family.”
For Yakoubek, as well as for more than 19 million other Americans working for less than the proposed $10 rate, according to The Economic Policy Institute, his paycheck could hardly be considered “huge.” Huge would be the more than $20 million JP Morgan’s Chairman, Jamie Dimon, earns on an annual basis, according to the U.S. Securities and Exchange Commission.
The wealth gap has been growing dramatically, a trend that’s likely continue. From 1973 to 2007, the minimum wage fell 22 percent in real dollars and domestic corporate profits increased by more than 50 percent, according to Time Magazine. Two-thirds of the American population supported raising the minimum wage according to a Public Religion Research Institute poll in 2010. It’s because of statistics like this that Jackson has brought such a pertinent issue to the forefront during an election year.
If the government is willing to bail out outlandishly large banks and corporations such as JP Morgan, it is inconceivable that it should not also provide a break for those who need it most in our country: the people.
The minimum wage should be $36 per hour for a 40 hour week. This equates to $75,000 per year which has been shown the be the income level of the happiest people. Of course to pay for it all income above that would be taxed at 100%. Perfect income distribution, Utopia.
Gimme, Gimme, Gimme. Dat graby train jus keep rollin along!!
Good point, but the problem with this analysis is the flip side, that there IS a big problem with unemployment.
That side is growing and is poised to become the majority.
At that point we are through. America is finished. Through. That is the part all of this misses.
We miss out on the America side of the problem. We miss out on the Europe side of the problem. Everything goes to China, which is only interested in one world.
Theirs.
They’re not there yet, but once they are, there’s no way back...
It’s not about paying people a fair wage. It’s about putting hundreds of thousands of dissatisfied young people out in the streets. How else are they going to get their revolution started? OWS didn’t work.
The last time the Dems raised the minimum wage we went in to an immediate recession and we haven’t come out yet.
Y’all are missing it.
Forcing inflation.
Ya know all that talk about “put the dollar on the gold standard”? The dollar IS on a commodity standard: mundane labor. A dollar is worth 8.28 minutes of “anyone can do this with no/minimal training” work. The proposal is to devalue the dollar to be worth 6 minutes of commodity labor. When enacted, any boost in buying power by the poor will soon be matched by price increases to equalize _value_ for which a dollar is a malleable arbitrary representation; raise the wage of the guy pumping gas and the price of gas will rise in proportion. Sure it will take time to ripple thru the system, but it _will_ cause inflation.
Raise minimum wage per hour from $7.25 to $10? That’s a devaluation of the dollar - aka inflation - of 27.5%!
Last time someone pumped my gas I paid 78 cents a gallon and he was paid about 3 bucks an hour...
Now I pay 4 dollars a gallon and I pump the gas myself and pay to a machine...
Maybe you need a better example...
Most of the retailers sell Chinese made junk to Americans that cost them next to nothing to purchase...How much are they really making???
The wealth gap has been growing dramatically, a trend that’s likely continue. From 1973 to 2007, the minimum wage fell 22 percent in real dollars and domestic corporate profits increased by more than 50 percent
Is this true or not??? Where the truth lies in this statement will likely influence my position on the issue...
How about cutting taxes, that would help "The People" more than anything.
The bottom line is, many Union contracts are tied to the Minimum Wage.
Yeah, couldn’t think of a better example at the moment. “Guy pumping gas” flowed better than “guy sits inside the gas station watching you pump gas” and got the same point across. Whatever the anecdote, point is that upping BY FIAT what someone gets paid WILL cause prices to rise across the board.
As minimum wages increase, the market compensates with changes which drive down the inherent value of those jobs.
Flipping a burger has inherent value. Force payment for that up too much, and the employer will find a cheaper way to flip that burger (say, get a machine to). Now the real value of flipping a burger has decreased as a consequence of demanding greater pay being routed by finding an even cheaper way to do the same job. The market can’t stand for this, so thru the ripple effects (not easily described in a flippant chat-board post) the value of that “increased” minimum wage must be driven down to match. If flipping a burger has an inherent value of $5/hr, and we mandate paying $7.50/hr, the market will compensate by driving the value of a dollar down so that the “new” $7.50 has the same buying power as the “old” $5; in fact, the momentum of decreasing the value of the dollar (”hey, I can buy a machine that will do that cheap, but I’d rather have a human do it”) carries on an makes that “new” $7.50 really worth an “old” $4 ... a 20% effective decrease in minimum wage value. AND! the employer still charges the customer enough to cover an “old” $5, with the difference going in his pocket instead of the employee’s.
Upshot: raise the minimum wage, and (once market forces ripple through) you’ll decrease what the employee can do with it, and increase corporate profits. Increasing minimum wage has exactly the opposite practical effect from what’s intended.
If you don’t like “real dollar” minimum wages falling 22% and corporate profits rising 50%, stop screwing with the minimum wage!
The republicans should immediately propose amendments to this bill to raise it to $100/hour, $500/hour, or $1000/hour. Let the idiots who proposed the bill explain why $10/hour is not inflationary, while $1000/hour is.
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