Skip to comments.New bill looks to increase minimum wage to $10
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is likely that Jacksons efforts will fail, especially considering the bill lacks the support of those working for such outdated prices, who dont believe a wage increase is justified.
I think Im getting enough money for what I do. I mean, making food doesnt 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 wouldnt 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 Morgans 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 thats 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. Its 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.
OWS demanded a $25 minimum wage.
You think we’re in a recession now? Raise the minimum wage to $10 or $25 an hour! Problem is all the “magical thinking” going on out there. Many think “well, now that the minimum wage is $25/hr., any job will be great!”
Yes, perhaps, but try getting that job in that situation!
Taco Bell will automate or go out of business if they have to pay that kind of money!
It's apples and oranges. On the one hand, you have federal manipulation of funds available to the government, by whatever means. On the other hand, you have the dictation by fiat that businesses must compensate employess at a certain level. Not the same thing at all.
Anyone who has taken an introductory economics course is familiar with the idea that a minimum wage leads to a reduction in the demand for labor and an increase in the supply of labor in the relevant market usually, the market for low-skill workers. The minimum wage removes the ability of some workers to compete by accepting lower wages and shuts them out of the labor force. As a result, it reduces job opportunities for these workers. A minimum wage breaks the hinges on the door of opportunity.
Look at his college major and weep.
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......Max, Max, Max. It is NOT the government “bailing out” the people. It is the employer who is being robbed.
Which anyone who is not a low grade moron understands. Problem is, at least 30% of the electorate do not understand, and the dems WANT more government dependent unemployed, so from a purely political (power grabbing) perspective, the push for a minimum wage hike makes sense (for the demscum) and may even succeed.
God help us. Please.
The fed has always thought it was their money..It is not. It is my money.
The fed has always thought it was their money..It is not. It is my money.
Speech, language and hearing? I learned all of that by kindergarten.
I think if he added a minor in potty training he might have a better career path.
But seriously, this idiocy is what's wrong with the young leftist diptards these days.
Instead of actually studying something that might be intellectually demanding and marketable, say computer science or a hard biological science, he studies some nonsense that will only guarantee him a place in either the unemployment line or behind the counter in a fast food franchise.
Then this 'learned' fool has the temerity to think the problem with his pay is that there are not enough laws to force people to hire him and pay him more money when his skill set does not go beyond what a normal child learns in kindergarten.
Someone is overpaying for his college education and they are being totally ripped off by the academic establishment - they are doing nothing more than providing the stupid with the chance to go to 'college' and learn nothing more than what they learned in nursery school.
Great Idea to increase Teen Minority Unemployment. Well, not only that but Teen Unemployment overall. Great Idea Democrats, I'm sure teens who can get their first jobs really appreciate it.
When I saw that, I assumed that he's learning to be a therapist, although that won't be his only option. Speech, language, and hearing sciences is actually a fairly rigorous science-heavy major. It will probably serve him well in the future. He was also pretty honest about the value of his work right now, before he has the degree. The kid seems pretty level-headed to me.
The other person mentioned in the article--the one introducing a bill for a raise in the minimum wage--is a total idiot. Sure, let's make sure the country remains an attractive destination for illegal immigration, by encouraging businesses to hire "under the table" so they can pay low wages and no taxes. It's not like we're pricing American kids out of the market with that < /s >.
...goes with the Obama unconstitutional amnesty dictate.
At least they could be honest enough to note that the extremely resistant unemployment rate is concurrent with the summer ‘09 rise to $7.25 and that the youth unemployment summer after summer is very high. I know they manage to fudge that all away every time it’s mentioned, but there is common sense.
Minimum wage seals the door good and tight... exactly why the usual suspects [e.g. U.S. Rep. Jesse Jackson, Jr.] are all for it.
Maybe the government can dictate that we get back all the industry we shredded over the last 40 years too ...
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.
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.
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 thats 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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