STORM2K

WASHINGTON (AP) -- Republicans muscled the first minimum wage increase in a decade through the House of Representatives early Saturday after pairing it with a cut in inheritance taxes on multimillion-dollar estates.

Combining the two issues provoked protests from Democrats and was sure to cause problems in the Senate, where the minimum wage initiative was likely to die at the hands of Democrats opposed to the costly estate tax cuts.

http://www.cnn.com/2006/POLITICS/07/28/ ... index.html

Let's talk about minimum wage and not the POLITICS in it.

I'm for it and against it...For one I don't think to many company's pay that to there full timers ...They usally pay alot more than the min...I think this hurt people that are looking for part time work like teenagers because the company's may not want to pay a part timer that much money....

I am no economics professor but that is a pretty drastic change in the minimum wage is it not?

I do agree that the majority of companies and states have raised their minimum wage policies and laws already. I think it's about time that the federal government got on the ball.

If that happens i will have to adjust the prices of my products upward. Are these lawmakers living in a fantasy world that the only thing that will change is the minimum wage? What is unfair is that those who are salaried usually do not see an increase in their wages thus decreasing the value of their salary.

Yes, Mama, you are right. Even the prices at Walmart will go up along with groceries, etc. We the consumer will bare the load. Not even speaking of the layoffs.

CajunMama wrote:If that happens i will have to adjust the prices of my products upward. Are these lawmakers living in a fantasy world that the only thing that will change is the minimum wage? What is unfair is that those who are salaried usually do not see an increase in their wages thus decreasing the value of their salary.

I won't see it either since I'm salaried. This is one thing that causes prices to increase, but so does fuel costs, benefits, even weather issues.

My salary has been decreasing in value since my annual increase is a flat 3.5% - it doesn't necessarily cover the increase in the cost of living.

Of course, if minimum wage is raised that significantly, will others receive raises as well?

For example (thinking back to how it was in my high school days), if a bagger makes the current minimum wage ($5.15) during his first year working at a grocery store and a cashier who has been there for four years makes $5.75 after a handful of 3, 4, or 5% raises, will the cashier's wage increase and by what percent? If so, then we'd have a bagger making $7.25 and a cashier making maybe something like $8.00 an hour. Well, then we'd have to adjust for the butcher, stock crew, shift supervisors, managers, and so on.

And, of course, that wouldn't just apply in grocery stores, it would apply at other businesses and services as well. If the housekeeping and dietary crew (minimum wage) at a hospital receive wage increases, shouldn't the lab staff, security, transportation, nursing assistants, coders, x-ray techs, clerks, phone operators, and other hourly employees who make more than minimum wage receive adjustments in their pay as well? And yup, Steph and Kath, salaried workers won't see that increase which is highty unfair.

I'm not opposed to slight increase...but $2.10 more over three years? That's 40%! I can't imagine getting 40% more than what I make now in just three years, without the obvious promotion to go with it. But just a wage adjustment?

Like you guys have said, all this will mean is a cost increase in everything else as well.

The minimum wage increase is probably long overdue. Prices have already been rising and are going to be climbing quickly anyway with fuel costs rising and now the heat waves killing cattle and damaging crops. We are in an inflationary period. Probably even headed towards stagflation thanks to the weakening economy, the weak dollar, costs from war, the big deficit and rising fuel costs. Not fun.

Stephanie is right that inflation has curbed salary increases. Most salary increases have not kept up with the high inflation over the past few years. And it is all about to get much, much worse because until now the hot housing market has kept the economy afloat. But that can't last forever.

GalvestonDuck wrote:I'm not opposed to slight increase...but $2.10 more over three years? That's 40%! I can't imagine getting 40% more than what I make now in just three years, without the obvious promotion to go with it. But just a wage adjustment?

Last wage increase was 1997 so that 40% spread over 9 years is just a little over 4%

Yes, this doesn't seem fair. What about the people who have worked for one or two years and finally making that wage? Will the new workers come in at the same wage? Kind of makes it bad for those already working.

Well,there is good and bad to this.Lets look at Walmart the avg person there makes around 6.75 per hour.(Thats at our walmarts in SC)So they will lay off about half of ever body in the store.Another place would be MacDonald's's.All I have to say on this is Bye bye dollar stuff and longer wait in drive-thur because of lay-offs.(I know a owner that has 8 and he WILL lay-off people)And what about the people that is already making this???Will there pay increase also???

GalvestonDuck wrote:Of course, if minimum wage is raised that significantly, will others receive raises as well?

For example (thinking back to how it was in my high school days), if a bagger makes the current minimum wage ($5.15) during his first year working at a grocery store and a cashier who has been there for four years makes $5.75 after a handful of 3, 4, or 5% raises, will the cashier's wage increase and by what percent? If so, then we'd have a bagger making $7.25 and a cashier making maybe something like $8.00 an hour. Well, then we'd have to adjust for the butcher, stock crew, shift supervisors, managers, and so on.

And, of course, that wouldn't just apply in grocery stores, it would apply at other businesses and services as well. If the housekeeping and dietary crew (minimum wage) at a hospital receive wage increases, shouldn't the lab staff, security, transportation, nursing assistants, coders, x-ray techs, clerks, phone operators, and other hourly employees who make more than minimum wage receive adjustments in their pay as well? And yup, Steph and Kath, salaried workers won't see that increase which is highty unfair.

I'm not opposed to slight increase...but $2.10 more over three years? That's 40%! I can't imagine getting 40% more than what I make now in just three years, without the obvious promotion to go with it. But just a wage adjustment?

Like you guys have said, all this will mean is a cost increase in everything else as well.

The avg stocker makes around 11-12 per hour.But not at walmart lol.Also I agree with you.But the bag boy would get the raise and the cashier gets laid off.Thats the grocery business

Well, I know it will create a lot of hard feelings with new people coming in at a starting wage of those who have been there for a long time. What good is seniority for them. Do you suppose businesses will use this for part time people and not hire any more full timers?

Janice wrote:Well, I know it will create a lot of hard feelings with new people coming in at a starting wage of those who have been there for a long time. What good is seniority for them. Do you suppose businesses will use this for part time people and not hire any more full timers?

In grocery?Yes it will means no full-time cashier and might be the end of the baggers.

So, basically it could mean less jobs available. Businesses that would normally hire, will be hiring a lot less now, if at all.

Janice wrote:So, basically it could mean less jobs available. Businesses that would normally hire, will be hiring a lot less now, if at all.

Yes,look at walmart have you ever seen a bag boy there??So the another stores will mostly do the same.

I work at Starbucks, and I started off there at 7.50 an hr and now I am up tp 7.80...But like everyone was saying.. People cant survive off a job that pays minium wage... and when minium wage goes up, so is everything else is going to go up, and we are going to be back to the same place as we were when we were making 5.15 an hr..Really, it sounds good, but makes no sence....

I am no economics professor but that is a pretty drastic change in the minimum wage is it not?

Nor am I; but I agree with your conclusion. This is a quantum leap. As far as the states that already mandated it--that's fine; and I'm all for people making a liveable wage--but as I'd heard someone else say, the only folks a raise THIS high is going to truly benefit, will be those needing it least--and hurt those needing it most. Most people working a minimum wage salary are either entry-level employees, high-school kids, and perhaps a few college students, and some homes where it is a second or maybe third income. These households, while helped by this salary, by no means require it being increased by nearly 40%.

I am a firm believer in the addage that nothing is free in this world. This hike if translated over the millions of people making this wage, will add a cost hike of equal millions that MUST be paid for elsewhere--and guess where that'll be? Hint: It won't be the Mega-Rich! It'll be the little guys who will be paying higher prices for just about everything they buy. It's the case of the frog slowly boiling in water without realising it--it won't be noticeable in the cost of one item--a good propagandist can bring out how the cost of a Big Mac might only go up 2 cents. What they won't be telling you is that by adding in that penny here and pennies there, that'll add up to literally hundreds of bucks over several months to a year. Now if the House had voted for a tax INCREASE of this figure--people would be up in arms... but because it's "feel-good legislation" that most do NOT see the hidden manner in which the tab for it will be passed right on dow to them--they applaud it; because so many of us have been programmed to love nice, touchy-feely, feel-good legislation.

I'm not hard hearted at all--at my job I'm only too well aware of what it's like to live off of a very low salary; but I would wager the number of folks supporting a family, or even themselves, entirely on a minimum wage salary is incredibly small. And many of the smaller businesses will be forced to reduce their workforce rather than be forced to pay this much of a hike in salaries--so guess who winds up looking elsewhere for a job? Yup... those very people this is designed to help out.

I think a raise to $6.00 or even as high as $6.50 over 3-5 years would have been much more realistic. It IS overdue... but they also overDID it with this hike.

Then again, it is an "election" year; and don't kid yourself--those who voted (regardless of politics/party) can read the tea-leaves in those polls showing the majority of sheeple thinking this thing needs to be done. So be it; but I fear many people (some being those who can least afford it) may very well rue the day this one passed if it remains at this level. Perhaps in going through the Senate a compromise bringing it down a couple of notches will help. JMO...but I'm sticking with it.

A2K

Minimum wage goes up. Businesses have to pay their employees more. The price of goods and services provided by said businesses goes up.


Im not an economist but I did sleep at a Holiday Inn Express last nite


Seriously folks while I agree that perhaps its time to take a look at the minimum wage this increase is MUCH too drastic. Anyone working for $5.15 an hour that thinks this is going to put more money in their pockets is sadly mistaken. They will be making more of course...but also spending more as prices go up. A slower graduated increase would have fewer repercussions in my opinion.