I also worked at McDonald’s in my youth back when it was $4.25 an hour. They raised it during that time and it was laughable. I ended up moving on to a better paying job within a year.
Working at McDonald’s was pretty greasy, lousy work; but it still paid enough that I could fill up my tank full of gas, go out on the town with friends on the weekends, and save up for big purchases down the road. Plus, a bunch of my buddies worked there with me and we were constantly involved in shenanigans like secretly concocting new recipes, shooting each other with tarter sauce & Big Mac sauce guns, and deep frying happy meal toys which helped make the hours a little less horrible.
Since I’ve received a ton of messages regarding the minimum wage, I’m going to take this time to answer as many as I can:
So apparently McDonald workers across the country are on strike and demand a 15$ dollar minimum wage and no penalty in become a union member. May I ask what this is a had idea? Thanks!
Yes, but they’re not all workers. Most of the strikes you are seeing is all union thugs orchestrated by groups like the SEIU. You see, unions have slowly been dying a miserable death thankfully, so they’re trying to whip up minimum wage employees into a frenzy so they’ll be open to organizing. They have a bunch of splinter groups like ACORN, Fast Food Forward, and Jobs with Justice which are nothing but a bunch of rabble rousers trying to start a movement. Only a handful of the truly clueless employees would go protest their job. Most fast food workers actually want or need to keep their job.
Wouldn’t raising the minimum wage up also possibly cause inflation? To me, it seems like it probably would. Side note: I am completely against the raising of it.
Well, inflation is a bit more complicated than that but prices will most certainly increase which is like inflation. I rather see it as a tax on the “middle class” (for lack of a better term), because while bottom earners see their pay increase at about the same increase in costs, those who already earn a wage above the new minimum wage will see an immediate cost increase.
but what happens when the cost of living raises and minimum wage doesn’t?
That’s up to the economy in general, despite the minimum wage. Our current stagnation of wages and dragged out high unemployment are making the misery index rather high. However, the majority of those that are working are earning above minimum wage, although wages aren’t increasing as quickly as they should. Then again, many people are having to work multiple part-time jobs thanks to Obamacare.
To be honest, I don’t think it’s fair that people who flip burgers for a living, and have no educational back ground want to make more than I do. I’m currently working towards my bachelors degree and I’m working at a retail store making 9 bucks an hour. It isn’t great, but it’s not bad either. Just doesn’t make sense to me.
I’d just like to say that the current minimum wage isn’t the issue, it’s people not able to manage their finances properly. Everyone could easily live off of 8.50 an hour or whatever it is now….
Well, the minimum wage differs from state to state, but you do bring up an interesting point that makes me curious. I wonder how many of those legitimate fast food protesters hav cell phones, have cable television, own video game consoles, eat out constantly, buy music, drink Starbucks, etc. Today’s poor isn’t like the poor of yesterday. Heck, I remember being so broke that I ate dry spaghetti with peanut butter.
Some of these people don’t appear to be starving if you know what I mean…
Since raising the minimum wage seems like a bad idea to you, what do you suggest as an alternative?
Getting rid of the minimum wage all together. Let’s get rid of all these burdensome regulations on businesses so they can start hiring more people and paying them more money. Dump a bucket of gasoline on the Obamacare legislation and throw a match. Stop toying with interest rates and quantitative easing at the Fed. Time to turn off the free food and other government subsidies. Let’s replace the progressive income tax rate with a flat or fair tax so you can keep more of your hard-earned money and more wealthy people will start investing more of their money in the market. Businesses aren’t investing in labor right now because confidence in the market is low. Everyone is restructuring just so they can…
This is what happens to business when government gets involved. We don’t need a federal mandated minimum wage because lower paying jobs will still need to compete with other businesses for even unskilled labor positions. If McDonald’s is only paying $5 an hour but Burger King is paying $7, more people would want work for Burger King naturally. Cheaper labor means more opportunity for growth, more jobs, better costs, more advancement, and more competitive wages. Anyone that believes a market must have a minimum wage is either a coward or ignorant. You don’t have to work at a place for a $1 an hour. It’s called free choice. That business will most likely fail if it does not pay a competitive wage worth the opportunity.
After seeing all these posts about the minimum wage being increased and what not I decided to give my 2 cents. What these people don’t understand is that these jobs are meant to be part time or entry level jobs for high school and or college kids. These jobs paying minimum wage are not careers and are not meant to support a family. Maybe if instead of staying at McDonald’s or whatever for their whole life they should maybe try and get an education of some kind. Just a thought.
If the wage of fast food workers goes up then the wage of people with actual marketable skills needs to go up which will make the price of goods increase. Thus keeping the cycle of inflation moving.
Again, inflation is a bit different. When wages to the bottom earners is increased, that does not necessarily equate to higher wages for those above that new minimum wage. Odds are that employers will not raise the wages of the higher wage earners because of the new labor increases to lower group. Higher minimum wages are another reason progressivism is so lousy.
For the people who don’t know how a business works, and how forcefully raising the minimum wage HURTS a business, especially one based on horticulture, not food. Besides paying employee salaries, I am obligated to pay taxes, social security, etc. If the government forcefully raises minimum wage, I am going to have to weigh in if my employees salaries + various tax are worth keeping them. Then, If I HAVE to raise prices and nobody buys - I will HAVE to let them go. Doesn’t that sound wonderful?
That’s another excellent point we aren’t talking about enough - the government’s benefit out of this deal. When wages and prices are increased, tax revenues are also increased. Not only that, but many low wage earners on the government dole are going to get it much worse than they know or understand (then again, if history has proven anything, the government will raise the eligibility requirements to receive government benefits when they start losing too many people.)
It may be true a small portion of adults are on minimum wage, but if they get paid 5 cents more an hour, they are removed from the minimum wage statistics. So if it was raised, they would be forced to at least pay them the amount which would most likely be higher than what they already get paid, no?
You are correct. When the minimum wage is increased it will raise anyone that falls under that new minimum. So, $8.50 an hour will be bumped to $10.10, etc. I’ve explained about the negative unintended consequences of this before as well.
The little thing you don’t tell your followers about the minimum wage is that the government not only forces minimum wage, but they also get tax breaks for paying more than minimum wage. That being said, your figures about how many people are on minimum wage are just deceit because a lot of companies just pay .25c over minimum wage so that they don’t look like they pay their employees the minimum. It’s a trick - nothing more. If you accounted for this, the numbers would be staggering.
Staggering? Not quite. You have the numbers at your fingertips actually, you just don’t bother to look them up before opening your mouth. Here’s a graph from 2012 when is the last census numbers could be attained:
You’ll notice that the medium individual income is at $26,989, which is much better than even $10.10 an hour. So, that blows your staggering claim out of the water. What you really want to look at however, is the percentage of household income distribution:
If you earn anything between the federal minimum wage of $7.25 an hour and $10.10 an hour and are the only source of income for your household (which isn’t likely), you make up 11.5% of the country. That’s not a big number. Then again, those numbers are offset by federal subsidies as well. It also doesn’t take in account any other sources of income or wealth that were not filed. In other words, we are talking about a relative few.
I’ve never heard of any special business tax deductions for paying more than minimum wage. You’re going to have to share that with me, because I’m only aware of the regular employee tax deduction.
People…raising the minimum wage has proven over and over to be a complete joke and insult to hardworking people. It makes no economic sense, but progressives keep using it as a temporary band-aid to give the illusion that they are helping fight poverty and low incomes. They’re only hurting people however. That is the honest truth. Don’t be a patsy.