Why hasn't there been a cost of living increase in minimum wage concidering the gas prices are so high ?

Question

Why hasn't there been a cost of living increase in minimum wage concidering the gas prices are so high ?

Answer 1

Minimum wage in Ontario was increased to $8.75 (general wage), to go up to $10.25 by 2010.

Answer 2

If you have a minimum wage job, you probably should be using public transport anyways.

Answer 3

Many reasons.

I think Congress is too divided to pass another minimum wage increase.  Last year they did, and it will raise minimum wage to 8 dollars something (or 7, I forget...either way its much better than the $4.50 or something it was previously). By '09.  However, I doubt that would happen again.

It is very partisan in Congress.  I don't think Republicans and Democrats will be able to hammer out another minium wage raise right now, esp with how much bickering there is.

Furthermore, right now the economy being very slow can also be a deterrent towards raising minium wage.  I see your point and it is a valid one.  To help people survive and deal with the harsh economic times, a minimum wage can be raised.  Well the trouble with that is, is that it could put more costs onto business.  I haven't made my total opinion (still looking at both sides) on this issue yet, but businesses will say that it will give them more costs.  Plus, there would be excess labor (more labor than demanded).  

So in general, they would face higher costs (from the minimum wage going up) and excess labor (too many people wanting a job).  As a result of the high costs and too much labor, they could cut jobs and create more unemployment.

Additionally, with poor economic times, businesses will feel that since their performance isn't that strong (b/c our financial situations aren't that great) they may feel that the extra cost of minimum wage along with dealing with excess labor supply would be too much of a burden.  So they would be against raising wages for their workers and/or hiring new ones.  Even if they weren't doing so bad, they would use those reasons as reasons for (rightfully or wrongfully) not wanting minimum wage to go up.

Now are they right?  Should minimum wage go up anyway?  Are the costs that high to them?

Possibly.  What I just mentioned are reasons why the minimum wage won't go up and would face much opposition from businesses.

But as for whether they are right and whether I agree with them, I don't know.  I'm still looking into the debate.

Answer 4

Many governments primary concern is business as opposed to the states' lowest earners.

Minimum wage is a nation-specific metric while fossil fuel prices are a global index.  That means if one nation raises their minimum wage which increases the prices of their exports and another nation does not, the nation that has the lower minimum wage will be able to offer their exports at a lower price to nations that are already spending a significant amount on fuel.

Answer 5

To have an Unfunded Government Mandate on Private Industry dictating that they pay workers a minimum wage is just wrong. In the end, the cost to fund those minimum wages get worked into the prices of the widgets and services we all buy. As such, its nothing more than a stealth tax on everybody. And as the cost of labor rises, so do the products we all buy. Thus negating the purpose for the minimum wage increase in the first place.

Government needs to stop mandating and start encouraging free markets and free enterprises. Instead of dictating how much money businesses should folk over to meet socialist policies that we all end up paying for in the end.