3) Employers also tend to pass the cost of keeping their employees by passing some/all of the increased expense to the customer.
Bingo. That's the inflation factor. The employer will raise the cost of its good or services to make up for the wage increase. This causes a decrease in the income for those consumers, thus causing them to increase their prices to make up the difference, and so on and so on-like ripples in a pond. So now that employee might make more money, but it takes more money to maintain the same standard of living. The net sum gain is zero. Marsh
Where did you learn economics? Poor Walmart CEO's, they might have to tighten up the belt and buy that new jet next quarter. Maybe we should have left it at $2.30 then? I don't get it, this increase is just to catch up a little with inflation. Everything has gone up the last few years except for the minimum wage. Have a heart guys. Unions (God bless them), have been keeping trademen up with inflation. We get a raise usually every year. Gas, food, produce, transportation, energy...you name it. 10 years ago I believe the minimum wage was still 5.35, a sheet of drywall was less than 5 dollars, now it's 10, gas was .89, now 3.05, but the minimum wage stayed there. As far as putting people out of work, heck, you make more on welfare and food stamps than holding a minimum wage job. Give people a little incentive to get up and go find a job. Would you go find a job if your welfare or unemployment check was 1.5x your payroll check?
you ain;t kidding we got a below inflation payrise this year, which if you think about it, equates to a pay cut ... i thought that was pretty nice of them! I thought inflation was all to do with demand and supply ... the more people spend, the higher the inflation, hence goverment puts up interest rates, people find they have less money, spending slows, therefore inflation slows!
People get more expensive everyday (additional taxes, wage increases, employment expenses...) as technology gets cheaper everyday. Increasing minimum wage just speeds up the inevitable.
Minimum wage, unions, welfare... you named 3 of the 5 things, in my opinion, need to be abolished to strengthen the economy. I'm a strong believer that people are paid either equal or above their worth. If someone honestly believes they are underpaid, then find someone who will pay them more. If they can't, then the answer is obvious.
I’ve got a degree in business from one of the most accredited business colleges in the country. In addition, I was in the PhD program for business before I was hired away to perform risk analysis (including economic risk) for two of the largest banks in the world. I spent 15 years in the field of risk analysis. And you?
I wouldnt take too much to heart, Martins still trying to find the missing £1 from a microwave he and two mates all chipped £10 apiece in to buy :lol: :lol: :lol: :lol: :lol: :lol: :lol: Ian :lol:
Glad to know you have a good brain. Now, can you explain to me why the minimum wage was left untouched for 10 years, while inflation went through the roof?...I don't have any degrees to show, nor do I need one to see something as simple as a paycheck of a minimum wage person and cost of living now and 10 years ago. Now with all your degrees, can you explain to me why you want someone to stay making 5.35/h?.... I know many people who are the product of the environment they grew up in. The don't think they have a choice for whatever reason. Now with all your years in risk analysis, I guess it was your job to keep the people at the bottom of the food chain from eating better. I am a union organizer, and very good at what I do, and I'm very happy. I also make a very decent living. Most likely nowhere near what you make, but I am happy. No, I didn't have the means to complete my education, I had to do what I had to do and have no regrets about my life. People aren't just numbers and graphics, you know? Now can you answer my other questions? By the way, I make 3x more what all my high school buddies with all their degrees, and no, I don't put them down for having more education than they know what to do with.
