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.
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More than 95% of companies pay more than minimum wage now. Most minimum wage workers are in the 16-24 age range. Mostly in the food industry. And why would you want a national minimum wage that is the same in San Francisco as it is in Hazard Kentucky?
If you raise the 7.25 person to 9.10, then you have to rasie your $9 guy to $11. Then your $10.50 guy to $12.50. Now lets do this while we have been mired down with 4 plus years of 2% or less GDP. And what happens to the ice cream shop when he puts a 25% wage increase into his final product and has a $3.50 ice cream cone?
My first regular job was at a hardware store, I made $1.30/hr adn was elated, minimum wage was $1.25. Gas was 19.9cents/gallon so even though my car only got 8 miles/gallon I could cruze all night on Fridays for a buck.
My adult co-workers were raising kids at !.65/hr. However that $1.25 wage in 1965 would be something like $11.00 today, the $1.65/hr would be $14.50. Is Obama really asking too much? Or are employers being too gready?
You are using math to calculate an increase of a burger and leaving out the entire chain of the supply. The economics of a business doesn't work that way. You are looking at the wage increase for the server at McD's but you need to look at the wages of of everyone backwards from there. Every business takes a little more for their part and by the time you get that burger it is a buck more.
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