What would be the effect of raising the minimim wage by two dollars(US) an hour? Who would pay for this increase?
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ANSWERS: 7
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The companies would have to raise their prices even more making the increase of minimum wage pointless!
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Inflation would rise and negate the raise. As for who would pay, the companies would have to pay private employees and we would have to pay government employees through taxes though few of those if any make minimum wage.
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Do you think it will be the businessmen who live in a million dollar house and drives a BMW? S/he is the same gal/guy who will scream that, if minimum wage goes up, s/he cannot make any money. Usually raising the wage so slightly has little effect on anything. In order to keep people off of welfare, it is important to reward work. Until people have secure high wage employment, the US is going to remain in a recession.
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Initially, the employer. Ultimately, the consumer.
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Well to pay for the increase in pay the employer would have to probably decrease the number of people working there. I would love to make more from minimum wage right now but it would effect everyone. The way the economy is right now it might do worse than good.
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companies whos employees got raises would increase prices and blame the hike on the raise even though executive wages went up by $20 per hour and stock investors got dividens of $20 per share. because of this inevitable chase I think it best to circumvent that and let them pay what ever employees will work for AFTER implimenting the ability for the populace to have a home without working, otherwise we continue in economic slavery. my proposal http://www.answerbag.com/q_view/1188564
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The effect would be that *some* people would make $2/hr (pre-tax) more than they did before. As for who would "pay" for the increase, the answer is (ultimately) everyone in a variety of ways. For example, an employer might... ---Raise prices ---Take a reduced profit ---Make capital investments to improve productivity ---Reduce shareholder dividends ---Reduce salaries for other employees ---Hire fewer employees ---etc., etc., etc. History indicates that increases in the minimum wage do not lead to the economic disasters that its opponents claim it does. http://oregonstate.edu/instruct/anth484/minwage.html
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