For every action, there is an equal and opposite reaction.

[Skip Intro]

If this is true economically, what would be the reaction to a raise in the federal minimum wage to say, $12? Would it spark the economy and lessen dependance on assistance programs because more people would be economically empowered? Or would the amount of money forced to be shifted from one area of a business equation to another cause an increased burden for everyone else to cover the new cost?

I know all the good-willed arguments for raising the minimum wage, and I agree with many, but what would be the effect were we to do it?

Realistically, what would happen.

[NYC_SKP]

1. Nearly every extra dollar spent on incomes would be put back into the economy.

And would lessen the low-pay class' dependence on food stamps and other programs.

In other words, it would serve the economy and make government smaller.

But the entitled class will never admit it.

[RC]

2. And not only that, but the taxes paid would go up also, giving the government more income to apply

to the safety nets, (as if they would do that) unemployment, SNAP, whatever.

[NYC_SKP]

3. Or to pay down the debt, balance the budget.

Can't have that, tho!

[Skip Intro]

4. But, doesn't that money have to come from somewhere?

Will it come straight from the salaries of CEO's and small business owners? Will the it come from business profits? It has to come from somewhere, it can't just appear out of thin air.

[NYC_SKP]

5. Yes, it would come out of salaries, dividends, and profits, but it's really an investment.

It would be harder on small businesses, however, but it's a necessary evil.

One solution I'd recommend would be for small businesses to consider becoming cooperatively owned organizations in which each employee is a shareholder.

[0rganism]

18. initially there would be a hit to profits

IMHO, about 2 quarters worth of reduced performance before the stimulus of increased demand for goods and services begins to dominate. As long as companies don't knee-jerk their way out of competitive pricing by over-reacting to an initial decline in net profits, they'll recover quickly and be much more profitable in the long run.

[Niceguy1]

28. increase of prices in the long

Ru ln.......net effect would be wage dilution of everyone else..and over time as thinhs adjust we will be exactly where we are now. It would be better to provide funding for education ti help them get better jobs.

[CreekDog]

6. are you against raising the minimum wage?

yes you are.

you've become a source for Republican talking points, whites' rights and a defender of Ron Paul.

why you remain here, except to give liberals' grief, is a mystery to me.

[Hassin Bin Sober]

7. .

At Mon Dec 9, 2013, 01:48 PM an alert was sent on the following post:

are you against raising the minimum wage?
http://www.democraticunderground.com/?com=view_post&forum=1002&pid=4152621

REASON FOR ALERT:

This post is disruptive, hurtful, rude, insensitive, over-the-top, or otherwise inappropriate.

ALERTER'S COMMENTS:

Poster comes into thread and attacks the OP as "a source for Republican talking points" and more. OP was an honest attempt to have a serious discussion - no Republican talking points to be found. The alterted poster is well-known for hurling unprovoked personal insults and clearly, in this instance, reaches the marks of being disruptive, rude, and over-the-top. Do we really want this kind of Meta-esque behavior to go unchecked? Please hide.

You served on a randomly-selected Jury of DU members which reviewed this post. The review was completed at Mon Dec 9, 2013, 02:00 PM, and the Jury voted 2-4 to LEAVE IT.

Juror #1 voted to LEAVE IT ALONE and said: Truth is a defense. Leave it.
Juror #2 voted to HIDE IT and said: The OP can't ask questions?
Juror #3 voted to LEAVE IT ALONE and said: It's the truth.
Juror #4 voted to LEAVE IT ALONE and said: Honestly, I've wondered the same thing.
Juror #5 voted to LEAVE IT ALONE and said: No explanation given
Juror #6 voted to HIDE IT and said: No explanation given

[seveneyes]

9. It's never good to put words in other peoples mouths

A question is better answered or ignored.

[Rex]

10. At least the jury made the right call this time.

[Rex]

8. Our country would flourish.

Of course idiots that like 'trickle down economics' are afraid of everyone prospering.

[Bandit]

11. As a small business owner I can say without question, it would cause prices to rise.

It will not be just those that draw minimum wage to get raises. It is a point of honor among many small businesses that they do not pay minimum wage, but several dollars more per hour at the least. I pay my employees more than five dollars above minimum wage, but minimum wage is $7.65 an hour where I live. There is no way I could stay in business, if minimum wage were raised to $12. per hour, unless I raised all my prices accordingly. As for lowering my salary, I already make less than most of my employees, and work longer hours. We just barely squeek by, but we are honest hard working folk.

[Rex]

12. So would you feel forced to raise your employees salaries to $17 dollars?

Seems you already are paying your employees above the $12 dollars the working class is shooting for so I don't see how the raise would affect you at all unless you felt the need to give them a raise.

[Bandit]

13. If you had been making much more than minimum wage would you like to be now

earning ONLY minimum wage? Of cours I would have to raise wages accordingly. I may not raise them the full five dollars but certainly somewhat above minimum wage. Probably to about $14 or $15 which would be in fact a small raise but in their eyes they would be making much closer to the bottom of the barrel. I would not feel worthy as an employer if I only paid minimum wage. I know how I feel about businesses that currently do pay only minimum wage.

[Rex]

14. Interesting, so the raising of the minimum wage would have a negative physiological impact

on those of us already making well above it, is your theory. It is really a shame that real wages have not kept up with the cost of living, I think that is your true culprit. Insight is a good thing, thanks for the reply.

[CreekDog]

22. maybe if we eliminated the minimum wage, we'd make the working poor making more than it...

feel really wealthy.

wow.

what an idea...that is totally utterly, nonsense.

[Egalitarian Thug]

15. What kind of work does your business do? n/t

[Bandit]

17. I am a wholesaler that distributes food items and snacks and beverages

I sell potato chips and soda pops and restaurant and institutional food items. Like School milk and Hospital foods, etc.

[Egalitarian Thug]

20. Yep, you're definitely feeling the squeeze. OTOH, I'm also sure that you would

figure out a way to deal with a rise in Minimum wage, should it happen (I'm not holding my breath). There are SBOs that are in business to provide products and services while making a living, and there are those that are only trying to make a killing through the efforts of others.

Now liquor distribution, that's the business to be in...

[moondust]

21. Do you think that

small businesses and multibillion-dollar corporations, the latter extracting profits from hundreds or thousands of local economies, should be subject to the same one-size-fits-all minimum wage rules? Can't the rules be designed to better fit different circumstances including local cost of living?

[CreekDog]

16. obvious...

After denying they had met, White House now says Obama lived with uncle

8 members have recommended this thread (displayed in chronological order):

... Skip Intro...

http://www.democraticunderground.com/1014664644
http://www.democraticunderground.com/?com=thread&address=1014664644&info=1#recs

[Skip Intro]

26. Oh...ROFL!

You really do crack me up. What did you do, go searching through my posts and then posts I might have recced.





I'm gonna go over all your posts and then all your recs until I find something on you and then you see...then everybody will see!!! That'll teach you!

Oh man...

[sendero]

19. It would do a tiny bit..

.... to shift resources from the wealthy to the poor. Businesses would be impacted equally, so every fast food burger would cost another 10 cents or so, so there is no competitive advantage or disadvantage. The people (myself included) that eat such food can afford the dime. Businesses would tell you that raising their prices would reduce sales, but I think that's bogus myself. If it did it would be an very small decrease.

For retail, about the same picture IMHO.

[Glassunion]

23. The reaction would probably be on may different levels.

Here is where I feel it would and would not affect things.

1. Prices will rise, however I feel that it would be negligible depending on the business. Your big corporations that are responsible for the majority of crappy wages will raise their prices, however to remain competitive, they will raise them as little as is possible. So you may find .99 items at WalMart will now cost 1.25, same deal with McDonalds, the McChicken will also cost 1.25 instead of the 1.00 it is in most stores.

2. You will inject more money into the economy. This will increase tax revenue and increase business sales.

3. You will have fewer people with a need to be on some form or another of government assistance. You will shrink the size of the group of working poor.

4. I do not think what so ever that it will have an effect on CEO and Board members' salaries. So there will still be a huge wage disparity.

5. I do not feel that it would be an increased burden on business owners.

[CreekDog]

24. so you're saying that items will go up 25%?

interesting.

[Glassunion]

25. No, not necessarily.

I used cheap items as an example. Mainly because of an article I read that quoted the chief executive of the NY State Restaurant Association, where she mentions the following:

"Melissa Autilio Fleischut, the chief executive of the New York State Restaurant Association, which supports the industry, including fast-food establishments, said that fast food was “an opportunity industry” where young workers could learn skills and advance. If the minimum wage were indeed raised to $15, Ms. Fleischut, said the result would be more automation, fewer workers hired and increased costs at the counter. “McDonald’s dollar meal would be $1.25,” she said."

I feel that she is exaggerating the automation, and fewer workers hired. I do feel that it will have some slight impact, but I feel that overall it will be negligible, especially for an industry that experiences over 100% turnover each year.

I cannot say what percentage the prices would go up. Because it would depend on item movement and GP% of the item sold. So high volume low-gross item prices would most likely be raised at a higher rate than a low volume high-gross items to remain competitive. Especially if they are not impulse items. Basically a $1,000 television at WallyWorld, might go up $30, but a .99 cent bag of Skittles may go up to $1.25.

So, with the high volume items on the value menu, you may see an increase of about 25%, but maybe only 15% on items like a big mac. The beauty is, that this would squeeze no one out of business, because they would all need to raise prices, and would still remain competitive.

[Uncle Joe]

27. A true "opposite" reaction would be an economic shift from wealth being held

in concentrated, monopolistic hands to a much broader base, increasing competivity and spurring new business growth.



Thanks for the thread, Skip Intro.