Quantcast The Daily Eastern News
College Media Network

The negative correlation in increasing minimum wage

Abstract:
As of July 24, the federal minimum wage will make a 70 cents increase, jumping from $6.55 to $7.25. Many see this increase and it puts a smile on their faces, but soon after that instant gratification does not often last too long. There are two main arguments about minimum wage: there are those who believe that increases in minimum wage are the results of higher costs of living....

  • Displaying 1 - 7 of 7

J

posted 7/02/09 @ 12:20 PM CST

I agree wholeheartedly. People are getting their wages increased without any tangible improvement in productivity. In addition to older employees resenting new employees earning the same wage or almost the same wage, there are salaried employees, namely these new employees' managers, that are seeing their pay shrink in relation to the people they are managing.

As hourly employees continually see their pay increase, even if in nominal terms, their incentive to work harder to attain a supervisory position is now diminished, since there isn't a commensurate increase in pay in those particular positions.
Post a reply to this comment

student

posted 7/05/09 @ 11:06 AM CST

Originally posted by

J

 I agree wholeheartedly. People are getting their wages increased without any tangible improvement in productivity.


I guess you would like to see their wages remain the same so that, considering inflation, they will actually be making less and less every year?
Post a reply to this comment

kathleen

posted 7/02/09 @ 2:46 PM CST

There also needs to be some sort of tiered minimum wage standard to help the small business person. If you are a student or are being claimed as a dependant by a parent/guardian, then you should not be entitled to the full maximum minimum wage. If you are a parent trying to support other dependants then you should get the full wage. The minimum wage was never intended to support a family and just arbitrarily raising it is unfair. The wage was intended for first time job people, usually teens and college students. Give us a base wage and let employers determine the rest, based on experience and job performance.
Post a reply to this comment

Joey

posted 7/02/09 @ 8:53 PM CST

Not much to think about. The state of Illinois is having serious budget issues. Raise minimum wage = raise income tax revenue = legislators get paid.
Post a reply to this comment

student

posted 7/05/09 @ 11:04 AM CST

This is illogical nonsense. Let me get this straight: Older employees making minimum wage are going to be ANGERED when their wage is increased, since that would mean younger employees entering the work force would make as much as them despite their years of experience?
Post a reply to this comment

J

posted 7/06/09 @ 10:45 AM CST

Student, let me teach you.

If you raise the minimum wage arbitrarily without any improvement in productivity, employers will have to adjust their spending or raise their prices. The end result is less purchasing power for these workers anyway so they will make less anyway. If the managers and more experienced people now make less as well, in real terms because of inflationary prices and new employees' wages, what is the incentive for the new employees to increase their productivity, work harder for a promotion, etc. when there is less marginal benefit in the positions above them.

Let the market right itself and keep Government out of the free market.
Post a reply to this comment

student

posted 7/06/09 @ 12:57 PM CST

Originally posted by

J

 If you raise the minimum wage arbitrarily without any improvement in productivity...


That's not the issue. The issue is the fact that $7.25 is worth less now than it was five years ago. If you want people to continue to be paid the same for the same amount of work, then you have to raise the minimum wage periodically in order to keep up with inflation.

What you are actually advocating is that people should be paid less now than they were previously, for the same amount of productivity.

[QUOTE id="5ae5ffb2-b6cf-4f1c-8ee5-d312081d9412"]Let the market right itself and keep Government out of the free market.[/QUOTE]

A market can only exist so long as there is a state to enforce contracts and regulate trade. The idea of a free market with no government interference is pure fantasy.
Post a reply to this comment
  • Displaying 1 - 7 of 7

Post Your Comment

  • NOTE: Email address will not be published

Type your comment below (html not allowed)

  I understand posting spam or other comments that are unrelated to this article will cause my comment to be flagged for deletion and possibly cause my IP address to be permanently banned from this server.

Advertisement

Advertisement