Ask an expert: Time to raise minimum wage?

MSN Money columnist Anthony Mirhaydari discusses whether a hike is needed and how a change might affect the economy.

By MSN Money Partner Feb 18, 2013 1:44PM
President Obama proposed raising the minimum wage in his recent State of the Union address. The impact of such a move on employment and the economy generally is debatable. According to Anthony Mirhaydari, businesses are already worried about burdensome taxation and regulation, and corporate earnings are under pressure. However, there is evidence of an improving situation for the American worker. Employers have already cut headcount and raised productivity as much as they can; now, in order to sustain growth they must either increase wages or hire more workers. 

Mirhaydari cautions that it is difficult to come down strongly on one side or the other of the issue as "this is not a normal business cycle." 

 

Be sure to check out Anthony's new investment newsletter, the Edge, and his money management service,Mirhaydari Capital Management. A two-week free trial has been extended to MSN Money readers. Click the link above to sign up. Mirhaydari can be contacted at anthony@edgeletter.c​om and followed on Twitter at @EdgeLetter. You can view his current stock picks here. Feel free to comment below. 

 

504Comments
Feb 26, 2013 11:11AM
avatar
yes it is past time to raise the minium  wage because many of the companies that are hireing are taking advantage of the worker in this tough economy by paying them 7.25 to 8.00 an hour.. this is not right because the american worker is worth much more than this chicken feed wage and these companies know it.
Feb 26, 2013 11:07AM
avatar
Every reputable economist will tell us that raising the minimum wage will lead to fewer jobs.  Need proof?  Consider what would happen if the minimum wage was raised to $50 per hour - I think just about everyone would understand that this would result in massive layoffs because employers would lose massive amounts of business because of the huge increase in prices for their goods and services.
The minimum wage is intended to provide training for young teens to give them the work experience that would enable them to improve their job skills and potential.
 Do we want to provide LESS employment for young people at this time of massive unemployment for the young?

Feb 26, 2013 10:57AM
avatar

Why stop at a 'living wage' should't everyone in the US be middle or upper class?  Why discriminate?  Why hold people down?  The minimum wage should put everyone in the 'Upper Class'!

 

So here is the idea - if we get everyone to $400,000 per year they will pay more taxes per the latest confiscation plan from Oboma and thereby support the economy to pay all the bills.  Make the minimum wage $196.08 per hour.

Feb 26, 2013 10:54AM
avatar

Yet another shallow government answer and another miserable failure.

Feb 26, 2013 10:54AM
avatar
Would raising the minimum wage hurt business??  No, Business would just layoff people to compensate for it.
Would it help workers?? Yes, those who keep their jobs. The laid off??? Well, they can go on Obamawelfare...... food stamps, free cell phones, move back home with mommy.
Feb 26, 2013 10:54AM
avatar

My salary has been frozen for the past five years.  No cost-of-living increases, no good merit pay.  I don't have a problem with people making minimum wage getting an increase, but for God's sake,

how about the government raising OUR wages too?  I work for a government agency, and have experienced no raises, furloughs, and cuts across the board.  Keep raising minimum wage, and I may as well not have gone to friggin' college at all, the salary will be about the same!

Feb 26, 2013 10:49AM
avatar
they also need to stop devaluing the dollar that would help too. Or better yet just get rid of the guy in charge and put a real American born president in charge. As a poor person you would think I was more demarcate but I'm more republican. I don't believe in big government it's like being a socialist country. The idiots in government telling us what we can and can't do with our lives. I would rather really on myself then the government giving me what I need.     
Feb 26, 2013 10:48AM
avatar
it is positive to increase minimum wage to maintain a minimum standard of lifestyle but it is more important to develop overall economy which will automatically increase basic salary.
Feb 26, 2013 10:46AM
avatar
I got and idea, how about our worthless polaticians take a huge cut in there wages untill they get this economy on track! How about all these worthless horses asses do something besides fight like a bunch of 10 yr olds while all of us suffer THEIR consequences! Seems like they are all on FULL SALARY all the time and then some.I'm sick of them telling us how and what to do and they can't even run the country!
Feb 26, 2013 10:46AM
avatar

I actually agree with them a lot more than you would think, and mainly to their chagrin. I am talking about Republicans.Or is it the Republican "talking points" I agree with? Once again. I will make sense, and of course, turn those Bohner tears into a bonehead river.

 

America SHOULD do away with the minimum wage.

 

Instead, I think America needs to go old school...pay respect to one of America's finest presidents. Lincoln? You are dreaming...Lincoln was among the worst...if you go by what Lincoln did and what Lincoln ACTUALLY stood for (does anyone remember Lincoln suspending Habeus Corpus?). Lincoln and Machevelli can have a man on man baby in hell for all I care...the. ends never justify the means.

 

I am talking about FDR. Roosevelt understood, perhaps more keenly than most can imagine...what it is to lose what you once had...FDR had polio and could not walk with support in his final days...FDR understood how life can drastically change. FDR understood how heartless the industrial age had quickly become as well and how drastically it changed the fortunes of good people...all in pursuit of the dollar.

 

In his final days, FDR proposed the Worker's Bill of Rights.

 

This Bill of Rights would have made working mean something again. It far surpassed any idea any of these modern politicians have come up with.

 

Minimum Wage IS a joke...I agree. Let's replace with something that has some teeth. Anything less is a waste of my time.

Feb 26, 2013 10:45AM
avatar

What our economy really needs is for the greedy corporate presidents to stop taking 10's of millions a year in wages and put more people to work. Who needs that much money to live on. Also, our polititions need to take a massive pay cut. After all, they (polititions) work for us and I never approved them getting a pay raise. Lets give them Minimum wage and see how much more they can produce.

 

Polititions are used to a high salary and very little production. Time to FIRE them....

Feb 26, 2013 10:42AM
avatar
Lets just raise it $25.00.If it can be pushed $9.00,why not $25.00?Anyone got a good answer!
Feb 26, 2013 10:42AM
avatar

The idiot author who wrote this article said   "Employers have already cut headcount and raised productivity as much as they can; now, in order to sustain growth they must either increase wages or hire more workers." Does he REALLY think that raising wages is a prerequisite for sustaining growth? He just said productivity had already been raised as much as possible.

Evidently he takes the readers on the site to be morons, when in fact, he is the moron. 

Feb 26, 2013 10:41AM
avatar
The government has no business gerimandering private business wages. The market place will handle itself, as usual, if left alone.
Feb 26, 2013 10:39AM
avatar
yes but not to much other wise corporation will give employees less hours then before. Now all fast food places are only hiring part time employees. plus a lot of them are not giving employee discounts anymore too.
Feb 26, 2013 10:35AM
avatar
If minimum wages are raised.. It devalues my wages by the amount it increased.. I live more poorly than I do now.  I mean if the minimum wage is creeping up on my wage that I've earned working hard, and some 16 year old walks into a Walmart and can make close to for NO education... NOT FAIR, and NOT good for our Country.. It devalues the rest of us!
Feb 26, 2013 10:35AM
avatar
Ridiculous. Raise wages.  Raise prices to pay for raised wages. Lower taxes.  On everyone.  And cut congress and senate salaries and benefits to reasonable amounts.  Does the most good for the most people.
Feb 26, 2013 10:33AM
avatar
Minimum wage must be $15 per hour.
Feb 26, 2013 10:31AM
avatar

it is good idea to increase minimum wage, but most important is Rentral compnies must reduce their apartments rents to ease pubic life.

Feb 26, 2013 10:31AM
avatar

Democrats consider minimum wage jobs and welfare as career paths.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

133
133 rated 1
286
286 rated 2
441
441 rated 3
737
737 rated 4
614
614 rated 5
606
606 rated 6
621
621 rated 7
441
441 rated 8
317
317 rated 9
122
122 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BBBYBED BATH & BEYOND INC10
TWXTIME WARNER Inc10
COPCONOCOPHILLIPS9
HDHOME DEPOT Inc9
VZVERIZON COMMUNICATIONS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.