Why do politicians, always talk about raising minimum wage despite having a negative impact on the economy?

Question

Do they not understand the economic impacts raising the minimum wage has on hiring and the bottom line cost of goods to consumer's?

"Barack Obama, the presumed Democratic presidential nominee, said Monday that he would provide economic security for working women in Montana and elsewhere through proposed tax cuts, a higher minimum wage and an expansion of paid sick leave and tax credits for child care."

http://www.billingsgazette.net/articles/2008/07/15/news/state/27-statewomen.txt

Answer 1

Well that depends entirely on whether you are talking about Macro-Economics or Micro-Economics.  And its only 'bad for the economy because of inflation levels.   If real-estate prices hadn't jumped through the roof as more wealthy investors bought their 2nd and 3rd houses, whilst investing in Futures Stocks in Oil or petrolium. The economy wouldn't be in this mess.  The rationale behind the Increased minimum wage being 'bad' for Economy, is that an increase in spending will further place pressure on rising interest rates and inflation.  But what the Dichs who blindly claim this fail to achnowldege is that if that increase in wages was invested, it would produce a net downward pressure on inflation. But it should be complemented with tax incentives to invest. (except in resources - there is too much of that already.)  The US governments conservative approach over the last 8 years (make that 100 years) has really stuffed the rest of the world, Its about time they at least practice a little domestic justice.

Liberals ! bah! its more like Economic rationalists.  Why would a government prop up struggling banks, without propping up the people who support the banks.

CARY:  IT is American engineered investment (they are like ENRON) firms that began selling future stocks  in oil that have caused the great increase.  How many stops are there between the oil well to the pump.  How come hurricane Katrina caused such enormous spikes.  Not because the supply was threatened but because future oils stocks were gonna take longer to honour.  The economy is made of Funny MOney that actually dosn't exist.  And industry is built on industry for industries sake not productivity.  We humans are so wasteful, wistful, and willing. Outlaw all investment in future oil stocks immediately, Freeze market prices, and allow the companies to buy them back at knife point if necessary.

Oh and buy back the federal reserve for gods sake.

Answer 2

Politicians don't concentrate on reality.  They know most people go with what sounds, looks and feels good.  The public isn't very rational, so the politicians don't try to reason with them.  Most politicians just give them what sounds, looks and feels good.

Bush is unpopular now because he doesn't do that.  He tells the hard truth and people want to hear pretty lies.  They say he lies because they cannot tolerate hard truths and want to pretend they aren't so.

Answer 3

Because it's politically popular... mostly because those same people who are working for minimum wage, can't DO THE MATH to know how increasing the minimum wage causes INFLATION.

Answer 4

Have you tried to live on minimum wage?  With prices on everything going up, there is an entire section of people who are literally living in poverty over minimum wage laws.

Answer 5

VOTES....

nobody thinks of how this and taxes affect them.

Answer 6

You're correct.

Those are conniving liberals. Minimum wage is destructive, it's for those who meet the clinical defninition of a moron and it needs to be ABOLISHED.

Barack Hussein Obama, however, will support this along with every other rotten liberal cause known to the human race.

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Answer 7

I live on minimum wage, it's not exactly fun.  A grand total of $800 a month, plus government assistance, bringing me to $12,000 a year.

But yes, I clearly understand that concept and am irritated whenever politicians talk about raising the minimum wage.  The only thing raising the minimum wage does, is cause businesses to have to raise their prices to compensate.  Causing inflation and nullifying any increase in the minimum wage.

Democratic politicians in general I've noticed, tend to run their campaigns on the foundation that most Americans do not understand economics/business/politics/etc, and thus they can promise all sorts of things they cannot deliver on.

It's similar to how democratic politicians regularly promise to make "Big Oil Companies" stop price gouging.  Despite the fact that it's somewhat-common knowledge that oil companies in America are only making seven cents per gallon off of gasoline.  So, even if the gas companies in America were pure nonprofit charity organizations, gas prices would STILL only drop from $3.97 to $3.90 per gallon.  The problem is crude oil distributors in the Middle East, not American companies.  But you'll never hear a democratic politician admit it.

Answer 8

If much of the public thought 2+2=5, Obama and others would be telling you they could make it equal six.