What percentage of the recent job losses are attributed to the recent hike in the Min wage.?

Question

The federal min wage was increased in July. How many of the recent job cuts were due to the fact that employers can no longer pay employees because they are forced to pay them higher wages.

Answer 1

Yeah, you're right, we should go back to the good ol' days when workers were paid less and worked more! If the market should determine the level of wages, why have wages for working class Americans been stagnant for the last 20-30 YEARS? But the income of those at the very top has gone up and up. Meanwhile, the rest of us are struggling to pay our bills and to make ends meet. 99% of all Americans were net losers under Bush's tax and spend policies. Are you one of the RICHEST 1%? If not, then why are you defending them? You'd have to be insane. Do you honestly think that whopping increase of $0.75 really hurt companies? Why not just pay their CEO's a little less? NO, it's CORPORATE GREED that has lead to those job cuts, nothing else.  

Answer 2

The majority of workers earning minimum wage do NOT work for "mom and pop" stores.  They work mostly in the service industry for large corporations or franchises (hotels, restaurants, etc.).

Here are some fun facts for you:

http://www.epi.org/content.cfm/issueguid...

Answer 3

Alot of smaller business are having to close their doors.  People think a minimum wage is great because those at the bottom make more money.  But say you didn't make minimum wage before?  You basically took a $0.70/hour paycut, while prices of everything around you go up.

No one can put a number on the actual percentage of job losses due to the increase in minimum wage, but we all know it's happening.

Answer 4

I'm not sure.  

That's a good thing though, because that just means that ALL of the money the employer was paying the help can now be put straight into the employer's pocket.

I'll bet employers are glad that the wage was increased.

Answer 5

I have no idea, but i'm sure it is a great deal.  Here is how I explained it to my son:

Good old wise government is here to help.  They just raised the minimum wage.  

The old rate of $5.85 ( 7/24/2007) has been raised by 70 cents to $6.55 ( 7/24/2008)

(rates from http://www.laborlawcenter.com/t-federal-...

What will that do?  Let’s say I have a hamburger stand and I have 10 employees that each work 8 hours a day. Government now says I have to pay them 70 cent s more per hour.

$5.85 x 8 hours = $46.80   x 10 people = $468.00 per day

$6.55 x 8 hours = $52.40   x 10 people  = $524.00 per day

That is $56.00 per day more out of my pocket, or higher prices I have to charge my customers, OR…..What if I fire one employee?

$6.55 x 8 hours = 52.40   x 9 people  =   $ 471.60  per day,  only $3.60 more. I can make that up with less pickles and lower quality meat, or less French fries per order.



SO, my customer gets less, one person loses a job, and government gets less taxes and has to pay welfare.   Now multiply that by 10,000 hamburger stands around the country. That's 10,000 more people out of work and on welfare and 10,000 locations serving less quality food.

Good Job Democrats!

Now what if we dropped the minimum wage by $1.00 ??

$4.85   x 8 hours x 12 people = $465.60 per day.  That’s $2.40 less for 2 more people.  Wow, 2 more people off welfare, paying taxes and learning some kind of experience to carry forward.  I suppose that kind of logic won’t buy Democrat votes huh?

Answer 6

That must be what`s wrong with this country, excessive greed on the part of $6.50 an hour workers.