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Democratic Gov. Jay Inslee wants to plump up the highest minimum wage in the land, @ $9.32/hr, to somewhere between $10.82 and $11.82/hr, presumably the final number to be determined by tarot cards, tea leaves, or chicken entrails (as opposed to supply/demand).
There's a breaking point at which a minimum wage becomes detrimental.
I would love to tell you what it is, but there are 1,539 separate economies/markets in the united States and the breaking point will vary from market to market (and skill-set to skill-set). But generally speaking, $9.00-$9.50/hour is getting close to the breaking point in a lot of markets.
There's another phenomenon that causes minimum wage to back-fire, and that is minimum wage causes wages to decline. There's a few studies published in economic journals in 2003-2005 that examine the last minimum wage hike.
Probably the easiest way to explain this, is when I worked 3rd shift at the GAP as an under-grad, we started at $10/hour (with a $0.25/hour shift differential).
So, if you raised minimum wage to $9.32/hour, then the GAP would stop hiring in at $10/hour and start hiring in at $9.35-$9.50/hour.
People lose money.
Quote:
Originally Posted by StillwaterTownie
I'm for whatever makes working people ineligible for welfare.
Really?
Because some Americans are single, have no dependents, have a job that pays $26.75/hour and your tax-dollars are paying their rent.
Quote:
Originally Posted by HappyTexan
For a family of 4 that would be about $28-30/hour min wage.
But that would just get them off SNAP, medicaid and free lunches.
But not rent subsidies.
Quote:
Originally Posted by urbanlife78
Guess we are having two different conversations. If she was getting paid above FPL, she would only need one 40 hr a week job, of two part time jobs equal to 40 hrs a week.
Tom is single with no children. He earns $4.55/hour and his annual income is $9,101. Because of where Tom lives in the US....he does not qualify for tax-payer rent subsidies under Section 8.
Fred is single with no children. He earns $7.25/hour, but works part-time totally 1,255 hours per year and his annual income is $9,101. Fred lives in the same place as Tom, and so is not allowed to have rent subsidies.
Joe is single with no children. He gets paid $26.75/hour and earns $53,490 annually. Because of where he lives, you pay for his rent.
Quote:
Originally Posted by urbanlife78
That is federal minimum wage. Also servers should be making minimum wage, not less. The states that get away with paying less are just abusing a loophole.
Mircea finishes teaching his Intro to International Relations class, runs to his office, grabs his apron, then runs across campus, grabs his bike and pedals downtown to the restaurant where he works part-time. Mircea gets paid $2.65/hour as a server and so makes $6.65 for 2.5 hours of work, plus $60+ in tips (after sharing with the bus-boy and wine captain).
Financially, Mircea is better off:
1) getting paid minimum wage and receiving no tips.
2) getting paid minimum wage and receiving significantly less tips
3) getting paid far less than minimum wage and receiving $60+ in tips which amounts to an hourly rate of about $25/hour.
Civility is what allows people like me to tolerate people like you, who would thwart and harm the ability of people like me to pay their own way through college without Student Loans.
Almost no tip based job gets raises, your raise usually comes from your performance with how much you make in tips.
Exactly , a tip based job is just that and that's the nature of it. It doesn't get a raise due to the fact that your income can well exceed a minimum wage pay or it can make just that or less. Some days you have good days and some bad but again that is the nature of the job .
Now usually jobs that start at minimum wage do just that , start there. Every job is different, comes with different duties and pay. Not every job is created equal and pays alike. It's called reality.
Now to answer freemkt- everyone has different priorities and bills in life. A house is a luxury not a necessity. I know bar tenders that make from 600-1k a week working night shifts 5 nights a week. Do the math . People need to know how to budge and manage money and live within that. People forget what is a luxury and a necessity in life. As an adult if you can't figure this out in life then there are bigger problems to be had.
If I make 2500 a month , I could get a house but won't be able to afford it due to all the upkeep and extra bills a house produces. I could manage in a nice apartment tho, save money up to put a bigger down payment on a house so that my mortgage is lower a month and affordable. Yes , the key to managing money and living in your budget , makes sense or what? .... gees you guys act so blind eye to things.
There's a breaking point at which a minimum wage becomes detrimental.
I would love to tell you what it is, but there are 1,539 separate economies/markets in the united States and the breaking point will vary from market to market (and skill-set to skill-set). But generally speaking, $9.00-$9.50/hour is getting close to the breaking point in a lot of markets.
There's another phenomenon that causes minimum wage to back-fire, and that is minimum wage causes wages to decline. There's a few studies published in economic journals in 2003-2005 that examine the last minimum wage hike.
Probably the easiest way to explain this, is when I worked 3rd shift at the GAP as an under-grad, we started at $10/hour (with a $0.25/hour shift differential).
So, if you raised minimum wage to $9.32/hour, then the GAP would stop hiring in at $10/hour and start hiring in at $9.35-$9.50/hour.
People lose money.
Really?
Because some Americans are single, have no dependents, have a job that pays $26.75/hour and your tax-dollars are paying their rent.
But not rent subsidies.
Tom is single with no children. He earns $4.55/hour and his annual income is $9,101. Because of where Tom lives in the US....he does not qualify for tax-payer rent subsidies under Section 8.
Fred is single with no children. He earns $7.25/hour, but works part-time totally 1,255 hours per year and his annual income is $9,101. Fred lives in the same place as Tom, and so is not allowed to have rent subsidies.
Joe is single with no children. He gets paid $26.75/hour and earns $53,490 annually. Because of where he lives, you pay for his rent.
Mircea finishes teaching his Intro to International Relations class, runs to his office, grabs his apron, then runs across campus, grabs his bike and pedals downtown to the restaurant where he works part-time. Mircea gets paid $2.65/hour as a server and so makes $6.65 for 2.5 hours of work, plus $60+ in tips (after sharing with the bus-boy and wine captain).
Financially, Mircea is better off:
1) getting paid minimum wage and receiving no tips.
2) getting paid minimum wage and receiving significantly less tips
3) getting paid far less than minimum wage and receiving $60+ in tips which amounts to an hourly rate of about $25/hour.
Civility is what allows people like me to tolerate people like you, who would thwart and harm the ability of people like me to pay their own way through college without Student Loans.
Financially...
Mircea
$60+ in tips after tipping out the busboy in 2.5 hours? Sounds like you worked at one heck of a busy restaurant with some high tippers. You do know you are suppose to claim those tips as income, right?
Exactly , a tip based job is just that and that's the nature of it. It doesn't get a raise due to the fact that your income can well exceed a minimum wage pay or it can make just that or less. Some days you have good days and some bad but again that is the nature of the job .
Now usually jobs that start at minimum wage do just that , start there. Every job is different, comes with different duties and pay. Not every job is created equal and pays alike. It's called reality.
Now to answer freemkt- everyone has different priorities and bills in life. A house is a luxury not a necessity. I know bar tenders that make from 600-1k a week working night shifts 5 nights a week. Do the math . People need to know how to budge and manage money and live within that. People forget what is a luxury and a necessity in life. As an adult if you can't figure this out in life then there are bigger problems to be had.
If I make 2500 a month , I could get a house but won't be able to afford it due to all the upkeep and extra bills a house produces. I could manage in a nice apartment tho, save money up to put a bigger down payment on a house so that my mortgage is lower a month and affordable. Yes , the key to managing money and living in your budget , makes sense or what? .... gees you guys act so blind eye to things.
Okay...
Also that bartender would have to claim his tips on his taxes and pay taxes on those tips if he wants to buy a house, otherwise the government sees him only making minimum wage. Also if he doesn't claim anything in tips, the IRS might get suspicious.
Government isn't throwing any money at anything by raising the minimum wage. Also if it effects such a small percentage of people, why do you care if they make a bit higher wage to help cover their cost of living?
It won't affect just the people currently earning minimum wage. It will cause wages anywhere near the minimum wage to shift upward, raising the cost of business. It will lower business income, which impacts taxes.
Strange, Washington's unemployment rate has been going down and in many parts are lower than the federal average. Facts don't back up your statement.
Do you have a methodology to measure jobs and small businesses that were never created due to higher costs associated with a mandatory min.wage? Id like to know what it is.
It won't affect just the people currently earning minimum wage. It will cause wages anywhere near the minimum wage to shift upward, raising the cost of business. It will lower business income, which impacts taxes.
So everyone in Washington and Oregon just got a raise?
True, they get their money one way or another, but that sales tax doesn't include groceries. The idea is that they are taxing consumers rather than labor.
Personally I like the Oregon system of no sales tax and a moderate state income tax.
Do you have a methodology to measure jobs and small businesses that were never created due to higher costs associated with a mandatory min.wage? Id like to know what it is.
Minimum wage went up many times over these decades yet job growth was tied to the prosperity of the economy. When a recession happened, job growth went down. Recessions don't happen because minimum wage increases.
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