Plano Texas Politics

July 27, 2009

Minimum Wage Raised to $0

Just this week the minimum wage was raised to $0 for thousands of US Citizens. Congress raised the minimum wage 70¢ under the premise of helping the poor, but in reality thousands of people were laid off because of this raise.

We must stop this outrageous climb in the minimum wage and in the raise in job loses. We must stop the government from ruining America! We need to save America! We the People! We have the power and we need to use it.

~James Dalley



  1. You’re against minimum wages on the basis that they cause companies to go out of business?

    It’s a familiar rallying cry but is there any evidence that this is the case? Companies experience inflation of all their costs, but unscrupulous ones will tend to push down on their employees first and foremost. They also tend to raise their prices over time. Minimum wages exist to ensure employees are not being exploited.

    Also, minimum wages are directly related to immigration issues. It is generally well understood that part of the attraction of using migrant workers is that they are cheaper and willing to do jobs that ordinary Americans are not. By having no minimum wage you are encouraging illegal immigration and better security/walls/whatever won’t prevent that.

    Comment by Simon — July 28, 2009 @ 3:27 am | Reply

  2. “”How will they absorb the increase?” said Rajeev Dhawan, director of Georgia State University’s Economic Forecasting Center. “They will either hire less people or they will do less business.”

    “More than in any period before, businesses are likely to lay off employees and reduce hours, further fueling the economic slump in states seeing double-digit unemployment rates, fiscal conservatives and some economists say.”

    It is also a concern that the rise in minimum wage will make businesses even more hesitant to hire new employees, and possibly even cut jobs, thus adding to an already high unemployment rate.

    One way to offset the pay increase would be for business to raise product prices, but in an already shaky economy, most are hesitant to increase prices for fear of losing customers. At Journeys, Hillin has been forced to limit hours for his employees in an effort to keep costs balanced

    Most of the working poor earn more than the minimum wage, and most of the 0.6 percent (479,000 in 2005) of America’s wage workers earning the minimum wage are not poor. Only one in five workers earning the federal minimum lives in families with earnings below the poverty line. Sixty percent work part time, and their average household income is well over $40,000. (The average and median household incomes are $63,344 and $46,326, respectively.)

    Forty percent of American workers are salaried. Of the 75.6 million paid by the hour, 1.9 million earn the federal minimum or less, and of these, more than half are under 25 and more than a quarter are between ages 16 and 19. Many are students or other part-time workers. Sixty percent of those earning the federal minimum or less work in restaurants and bars and earn tips — often untaxed, perhaps — in addition to wages. Two-thirds of those earning the federal minimum today will, a year from now, have been promoted and be earning 10 percent more. Raising the minimum wage predictably makes work more attractive relative to school for some teenagers and raises the dropout rate. Two scholars report that in states that allow people to leave school before 18, a 10 percent increase in the state minimum wage caused teenage school enrollment to drop 2 percent.

    I hope that should be enough proof to help you see some of the many problems with the minimum wage.

    Comment by jdalley — July 28, 2009 @ 1:51 pm | Reply

  3. Well, people are not laid off so much, but it does decrease the new job opportunities. It really doesn’t help the people that it needs to. And the increase in unemployment form higher minimum wages is small compared to the normal variation of the market.

    Comment by Recaiden — July 29, 2009 @ 12:41 am | Reply

    • That is true Recaiden, job opportunities go down because of minimum wage increases. Though I do believe that those people who do get laid off see it as a huge variation.

      My view of a good government is one where most people can work without getting money or health care from the government. If the government is laying people off by raising wage laws then we can’t have a society that will not accept government help.

      Comment by jdalley — July 29, 2009 @ 3:22 pm | Reply

  4. You didn’t answer the migrant aspect. I think that’s important. Regardless, even looking at your own numbers, you’re showing that this applies to only a couple of percent of workers. So the impact is not significant. But you also forgot something:

    Prices rise. Rents rise. Bills rise. Food costs rise. Fuel cosrs rise. Year on year. Inflation is real, so a dollar a day is worth 80% of its value 10 years ago. If the minimum wage remains static, which it largely did for a decade, then in real terms those being paid the wage are poorer than they would have been 10 years ago. And that assumes only static rises in each of those quantities above. Put it all together and your position is essentially pro-serfdom.

    What I mean by that is that one of the key rights of the constitution is the pursuit of happiness. At certain income thresholds that right is effectively nullified because people can barely afford to feed and clothe themselves (and heaven help them if they get sick).

    Comment by Simon — August 2, 2009 @ 4:14 pm | Reply

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