Posted by: As I See It by Arnie | November 24, 2006

Minimum wage stuff

Just as expected, the democrats are making their first move to transform and take America into a deserved different direction, a more progressive, tolerant, diversive, and global community of satisfied, safe and secure prosperous populace.

The first step: raising the minimum wage rate from 5.15 to 7.25.

So says Nancy. “The Democrats will move to increase the minimum wage within the first 100 hours of the new session.” According to a Chicago Tribune story: “A report this month by the Economic Policy Institute found that more than 6 million minimum-wage workers would see immediate pay raises by boosting the minimum wage to $7.25 an hour”.

Can you see these teen-agers planning what to do with all that immediate extra cash? That’s a boost of $2.10 an hour. Wow. For those 20 hours I’m working at Taco Bell, I’ll bring home an additional $42. Man, I sure can use that. What is not being told also is that the increase will take 2 more years to get to $7.25. When the kids figure this out, then the bubble will be broken and they’ll realize only an additional $14 for those 20 hours of work, but then the boss might just reduce his/her hours by 3 to maintain the margin of profit, or lay off his/her friend, and also raise the price of that taco by 25 cents. Gee, maybe it’s not such a big deal for these kids after all.

But the unions love it, as most of their wage contracts are indexed to the minimum wage. So when the minimum goes up, everything else goes up and up, except for one accompanied fact, employment goes down. Oh, what a tangled web these politicians weave. But it makes good news, the lefty press eats it up, and they can all feel better for helping the unfortunate ones struggling to make a living on the minimum wage. If you’d like to read further on who it is that works for the minimum wage see: Characteristics of Minimum wage workers from the US Dept of Labor. Now, wait a minute here. That Chicago Tribune story above quoted the Economic Policy Institute saying over 6 million workers would benefit. The Dept. of Labor in their statistical estimates of 2005 say less than 2 million would receive the increase. Which is correct?

Nobody knows. Will you bet that the higher number gets the show? Sure sounds better.

Those on the receiving end think the unearned mandated increase is great till the hours are cut, or the lay-off comes along.

The politicians don’t want to really upset the apple cart by doing it all at once, so they figure they have to gradually increase the minimum to make it more acceptable and tolerable to those small businesses affected by having to pay it out. To those receiving the boost, it’s deceptive. And the media goes along with the democrats, arm in arm, printing out stories and reading from their monitors about the minimum wage being increased to $7.25.

On a side note. Do you see a similarity here in the way our taxes are raised? But then we are told it is only going up a little bit and for those who can afford it.

Well, why not raise it all at once? Skip the two-year deal. Why is $7.25 the magic number? Why not an even number like $8.00 hour? If $7.25 is good, won’t $9.35 be even better. Hey, let’s not hold back any. We’ll make it $23.55 an hour. Then all these people “living on the minimum wage” would be able to buy those wide screen TVs, monthly cable, or even the satellite, perhaps get a cell-phone. Everybody has a right to a cell-phone. Right?

See Additional info on minimum wage increases.

Again, it’s only as I see it.


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