IS IT TRUE that today is celebrated in many countries as May Day and is somewhat similar to Labor Day in the United States?…May Day is a celebration of laborers and the working classes that is promoted by the international labor movement and occurs on May 1 every year?…May 1 was chosen as the date for International Workers’ Day by the Socialists and Communists of the Second International to commemorate the Haymarket affair in Chicago that occurred on May 4, 1886?…May Day is celebrated in 80 countries around the world and except when something of political significance to the labor movement is in political play is largely ignored in the United States?…this happens to be a year when political hay is being made over the federal minimum wage and it is no coincidence that the leader of the United States Senate used this occasion to attempt to hold a vote in the Senate to increase the federal minimum wage from $7.25 to $10.10?…the Republicans blocked this showmanship with another form of showboating called a filibuster?…at the end of the mutually orchestrated circus nothing happened and May Day changed nothing in these United States?
IS IT TRUE it is also doubtful that any change in the federal minimum wage would alter many personal circumstances by much over time?…the biggest reason for that is that the cost of living is very different across the country as evidenced by the recent article showing that one would have to make over $50 an hour to be able to afford the average home in San Francisco while one can afford an average home in Evansville with an hourly wage of $11.21?…for this reason for a minimum wage to be meaningful and have the potential to make a difference it needs to be determined locally and not at the federal level?
IS IT TRUE that unbeknownst to many people in Evansville, there is a local flavor to the NBA playoffs outside of the dumb ass of the week spectacle that the media has made out of the owner of the LA Clippers?…the head coach of the Toronto Raptors is Duane Casey who played high school basketball for the Union County Braves down in Morganfield, KY and went on to the University of Kentucky under Coach Joe Hall?…Coach Casey was on the Kentucky Wildcats team that won an NCAA Championship in 1978 and is a childhood friend of this writer?…while the world has been focused on the idiocy of the owner of the Clippers, the City County Observer would like to encourage our readers to concentrate on the Pacers and the Raptors and and ignore the frenzy around the dope from LA?
IS IT TRUE that Mayor Winnecke has announced that there will be no conventions in Evansville until 2016 due to the uncertain construction schedule of the new downtown convention hotel?…the Evansville Convention and Visitors Bureau has even gone so far as to announce they will not even start to market Evansville as a convention destination until a real construction start has happened?…a real construction start has nothing to do with the golden shovel event held in early March that had the same level of credibility as the Earthcare Energy LLC business plan?…the Mayor is still trying to blame Dunn Hospitality for the delay because they requested a market study by the Hilton Corporation as soon as they were notified (March 24, 2014) that a competing franchise had been applied for by HCW of Branson, MO?…Mayor Winnecke is quite disingenuous in his claims that Dunn Hospitality’s choice to exercise their contractual rights has delayed anything?…the reality of the situation is that there are three main reasons that construction is not happening right now and they are as follows?
- HCW did not apply for the Hilton Doubletree franchise until the last minute after stating in an interview with Evansville Living Magazine that they had done so in December.
- Financing details have not been released so the funding is still not secure
- The lot where the hotel may be if a franchise is approved and financing is secured IS NOT YET SHOVEL READY
IS IT TRUE with literally none of the basic needs to start construction completed it is misleading and offensive that a private business that has invested many millions of dollars in Evansville, filled the coffers of local charities, and employs way more people than the downtown hotel ever will is the focus of blame?…if one really wants to affix blame for the delay in this 4th time around the May Pole for the hotel it is in the failure of local government to adequately VET the developer, the site, and the pro-forma?…if the Mayor of Evansville wants to properly affix blame for the problems we have had in getting a hotel downtown he needs to look at the pictures of the last 60 years of Evansville Mayors up on the 3rd floor of the Civic Center?…this cast of characters are the ones whose failed leadership has precipitated a dilapidated sewer system, a stagnant economy, population loss, dilapidated houses, crumbling sidewalks, and rusted out water pipes?…if these 60 years of Mayors had concentrated on infrastructure and economics instead of fun, games, and cronyism Evansville, like Lexington would most likely have two downtown hotels with little or no public handouts needed to get them?…the Civic Center needs a Mirror of Blame installed somewhere with instructions on how to affix blame?
IS IT TRUE there is no 2012 City of Evansville audit posted on the SBOA website today?…it is approaching 2 months since the exit interview was held?…it will be interesting to see if the SBOA actually publishes what was discussed in that exit interview or if something gets whitewashed?…there are several people who will know?
Make congress live on min wage, even give them equivalent of 80 hrs/wk on min wage. Then hold the vote.
You just don’t get it. If a person makes minimum wage there’s a good chance that is all their work is worth. A lot of people in congress take a pay cut to be of service to this country and most of them do a reasonable job. A person has to start somewhere and for most it’s at the bottom. The minimum wage is going to increase and Walmart and other places that start at minimum wage already know this and are making adjustments. Innovation will win, at Walmart one cashier is already handling 8 registers. People wait in line to use the self check out over a personal cashier. Wonder how many people this put out of work? Employers already know that some people are not worth $10.10 an hour and will have fewer employees. I know you get into that union stuff but unions and a bad business environment send our local jobs south. This means higher tax for the rest of us. The Republicans need to get of their butts and open up the borders and let more folks willing to work come into this country. Local politicans need to quit buying votes with PLA’s and get competitive bids that we can afford to fix out streets and sewers.
I recall my days as a minimum wage slave, although not fondly. To my own credit I rarely stay at minimum wage for long, but tell the kid who’s taking a full time courseload at USI, and working two minimum wage jobs, sleeping 4 hours a day, if he’s very lucky, in an effort to support himself, and improve his lot, that he’s lazy and he’ll likely punch you in the face.
That kid was me. I got called lazy all the damned time, by the bosses who made comfortable livings, didn’t have to rush to class or to the other job after the shift, by my parents, who didn’t understand Why I didn’t want to come home on the weekends, when I had the rare day off, and just wanted to stay home and sleep.
My own father once burst into my bedroom and demanded know why I was still in bed at noon, when I’d finally crawled into that bed at 11am after working a 10pm to 7am shift then going to my morning classes. (I’d been at USI the day before from 10am to 6pm) So Yes, by the time I had crawled in bed, I’d been awake for over 24 hours.
I did this twice a week, for 1 year, 6 months, yet I was still “Lazy” Because I wore a name tag to work, and got talked down to by asshats that I wanted to throttle on a daily basis.
Before long I developed a little voice in my head that constantly asked me “What’s the point?”
Two and a half years into that vicious cycle of never having enough, always being tired, and getting angrier by the day, that voice got a little too loud, after my girlfriend dumped because I’d fallen comatose into bed, slept through my evening classes, and missed a dinner date with her parents.
Because I was “Lazy.”
I worked a combined total of 60 hours a week, took 21 credit hours of classes a semester, even held my grades up, yet I was lazy.
Can you see how that would make a person bitter? It certain did for me.
I wound quitting both jobs and school with a year. By constantly calling me lazy, people made me lazy: Because what WAS the fucking point? My life was joyless, I went deeper in debt every month, and if I was very lucky, after 4 years of that, I *MIGHT* get a job that pay me 24k a year.
I was 21. I didn’t hold another job for longer than a year until I was 25.
Last year, I was let go from another job. The refused to give me a reason, but I knew why. I’d been in my position for 3 years. They were going to have to give me a raise and another week of paid vacation, and I wasn’t afraid of them. Why keep me on when they could find someone to do my job for 2k less a year, not have pay them for a vacation for another year.
During that 3 years I never turned in a week below company standards, I had the lowest attrition of any supervisor in the building, and I designed a document to make my job easier. My boss saw it. He made it standard for the rest of the branch. It worked. Very well, he put his name on it and sent it his boss. He got a bonus, and bought himself a new Cadillac. I got an attaboy and lunch on the petty cash account.
After they cut me loose, I decided, after speaking with my brother and father that I was tired of being expendable. We decided to start our own business. If we ever get tot he point were we need to hire people, we won’t be paying minimum wage.
Our society and fucked from top to bottom. The Poor aren’t the enemy. They don’t want to be super rich, they want to comfortable. The Bastards in the Board room, have us at each other’s throat. The not so bad off, with our Mortgages and 3 year payments on our cars, we call our younger rank and file lazy when the bust ass daily and struggle, while these ASSHOLES running the country, getting paid in damned near theoretical numbers, could buy our homes and cars 10 times and not blink.
They try to keep us afraid with the oft unspoken “YOU ARE REPLACEABLE!” Sure this job sucks, but think how bad your life would be if didn’t have it!
Walmart would have to raise it’s prices on average by one cent per item in order to maintain profits and pay it’s workers a decent wage (Enough to live on) But that won’t happen… because they’ve turned us on each other. They’re poor because they’re lazy, or they make bad choices.
It’s bullshit. They’re poor because they want us poor, and tired, because god forbid we ever had the time and energy to think about how fucked up our country has gotten, we might resist them.
+1 but it falls on deaf ears with the completely obtuse right wing. They say Reagan’s voodoo will trickle down to you someday and half vote republican and die waiting for that supply side shit to finally get to them.
Sounds familiar, I also went to USI, had 2 P/T jobs. One was minimum wage, one was slightly more. I worked hard, was always on time, listened to the boss, followed instructions and rules and didn’t cripe or complain. If you’re going to work for someone, work for them, be loyal, be a compliant employee not a disruptive factor. I didn’t quit, that’s the difference. Early quitters, quit on themselves, quit on their families and their country. Personal PRIDE, Professional Results IN Daily Effort is the key. I’m doing well at this time, making more than minimum wage. I’m proud of myself, but more important my family and friends are proud of me. Of course, knowing your limitations and having some basic scheduling skills is real important. I carried 15 hours and picked up extra credits during inner sessions. I used PERT as a management technique to complete my goals. It works.
It’s funny, with the tossing of negative labels. “Lazy” and “Quitter” Because if you asked anyone I’ve known, these are two things I’m not. I’m also not a doormat.
I also find it quite funny, that through maintaining proper ethical standards and treating subordinates like real live human beings deserving of respect, I’ve run afoul of Corporate America on several occasions.
But in maintaining my own moral compass, I managed to turn all of the people I supervised into assets, because they felt respected, and valuable to the company.
And I know I was an asset to the company, because a ship sails as the captain sails. My former boss found this out the hard way when he was shown the door less than two months after I was shown the door.
Leadership is a responsibility, not carte blanche to step on people. Never ask anyone to do something for less than you would do it for, and to steal a line from one of my favorite TV shows, “If a man shout that he is King, he is neither a man, nor a King.”
I’ll be the first to admit, I hit some bumps in the road on my way to where I am now. But I’ve learned from each and every mistake I’ve made.
But I stand by my closing statement, the system is fucked. It wants drones, people willing to slave for their pittance, get zero respect from their employers or their customers and not recognize loyalty is a two way street, who are willing to be afraid for the illusion of job security.
So step outside the system, Yeah, I’ve made more money doing someone else’s work. But I’ve never been happier in my entire live. Corporate America needs us, WE DON’T NEED THEM.
Just think… if every single minimum wage employee in this country called in sick tomorrow. Who would be afraid then?
The best of luck to you and your family in your new business! It sounds like you have what it takes to succeed.
So in other words you worked a Minimum wage job while developing a more marketable skill.
Sorry to hear about your job experience. Not all bosses and companies treat employees poorly. Were you paid more than minimum wage? However, your treatment is really not a good reason to start your own business. You need something that differentiates you from others, or you are going to learn a lesson about being self employed that will be much worse than the lumps you took working for anther company.
Also, I am glad you have committed to pay above minimum wage. But few employers can hire employees with the skill sets they need at minimum wage. So that’s not really an impressive statement. you will have to pay the prevailing wage for your industry. Why not go a step further and pay above the average wage?
Never the less, if your market will only ear the current minimum wage, and you pay more by choice or law,, you will find that you will soon be out of business.
There are some dynamics that you don’t control and have yet to learn.
You will begin understanding them the first time you have to pay employees and not yourself.
Remember this reply when that happens.
As usual we’ve drifted far far away from the question at hand. The question isn’t whether you can or should work harder or smarter or become more qualified
The question is:
Do people who work full time or near full time deserve to be paid enough to feed, cloth, and house themselves and get medical care if they need it? T
he liberal anwer is an unqualfied resounding YES. Again repeat it’s unqualified. We don’t buy into the musical chairs of work herder smarter etc., that will by definition leave millions out in the cold or on goverment assitance, i.e. what we have now.
People who work full times should not have to have government assitance and their employer should not be able to exploit that.
I’m just flowing with the tide Brains. But congratulations on your new appoint as CCO hall moniter.
The question is:
“Do people who work full time or near full time deserve to be paid enough to feed, cloth, and house themselves and get medical care if they need it?”
The smart answer is NO. People deserve to be paid by the skill sets, experience, and reliability. If minimum wage does not meet the minimal needs, then one needs to acquire mor ethan minmal skills, experience, and reliability.
“T he liberal anwer is an unqualfied resounding YES. Again repeat it’s unqualified.”
Your “YES” answer is unqualified. Have you ever met a payroll? It will make you a better man. Changing minimum wage does not change market dynamics other than whipping out minimum wage starting jobs, turning low wage earners into minimum wage earners, and causing the price of everything to inflate.
“and We don’t buy into the musical chairs of work herder smarter etc., that will by definition leave millions out in the cold or on goverment assitance, i.e. what we have now. People who work full times should not have to have government assitance and their employer should not be able to exploit that.”
Herding is an honorable occupation. You had an unusual amount of typos for the Brains of this place. 🙂 Are there millions left out in the cold? Can the get government assistance? If so then minimum wage earners aren’t relying on that wage. so bye bye to your first point
But did you know that before the minimum wage was raised the last time that there were only 500,000 minimum wage earners? even burger joints had to pay more than minimum wage to hire workers. But then we raised minimum wage, the economy tanked, just like smart people said it would. How many minimum wage earners do we have now?
The fact is that a good economy cures the minimum wage problem. Instead we have the ACA that is causing the people who write the pay checks to stand down on hiring.
I’m glad you liberals care. I just wish you would care with your own money as much as you do other people’s. Why don’t you make some jobs for people other than the boy who cuts your grass? You do pay him $21 an hour right?
‘The rich and poor alike are napping, the rich felled by a big lunch and the poor by exhaustion.’
Ghost,Why? Like them or not, most in congress are achievers who have acquired skills makes their time mo e valuable than minimum pay.
Making such a comment shows that you are ignorant of how an economy functions.
Raising the minimum wage knocks the minimum wage earners out of employment and raise the cost of living for low wage earners.
Joe B Hall, Duane Casey and anyone else who lives in Kentucky and cheers for the Kentucky Wildcats is a criminal. That’s right. The whole state of Kentucky is nothing but criminals.
…well, that’s what I heard anyway.
Editor: RE: Needed infrastructure improvements in the City…and their neglect
I don’t know how to address it in a political atmosphere where anyone who advocates for maintenance, repair and overhaul (and replacement) of city infrastructure is punished as a tax and spend politician and castigated to death until forced from office. THEN…in 20-40 years is lauded and recognized for wisdom, forethought and a community hero.
Somehow financing for MRO needs to be separated. But I don’t know how to do it. The political will is never there because the price is too high for the governing official.
Exactly. Good parents however fix the leaky roof and the stopped up toilet before bankrolling a trip to Disneyland or even Holiday World. The same goes for good politicians. Please enlighten me as to when Evansville has had a politician whose focus was on infrastructure.
Politicians focus on infrastructure like a laser, when it is in a newly-built and profitable location, that realtors and contractors who donate to their campaigns are profiting on. They just don’t care about the old, crumbling kind, in old neighborhoods where little or no contributions originate. At least, not until there is a huge amount of Federal money to repair them. Then the contractors get out their checkbooks again.
SO…acknowledging agreement on the endemic problem
…AND that infrastructure MRO has to be addressed nonetheless…
…THIS is why you see the advent of the public/private partnership to try and address politically insurmountable financially-deficient public project problems.
If public dollars will not be proposed and passed, then efforts to combine them with private enterprise related solutions are proposed instead.
I am not advocating PPP’s as a blanket solution. What I am acknowledging is they are being proposed by officials trying to address the need….in an arena dominated by this “endemic problem.”
It is difficult, if not impossible, to make PPP’s work when it comes to things like sewers. That one is going to be on the rate-payers, regardless of who is “on the hook” for the cost of repairs. Skyrocketing utility costs don’t bode well for ANY sort of development.
LKB: Thanks for telling us again what won’t work.
Editor:Ask this Question when wasn’t Evansville’s infrastructure focus not an politician?
Well, Frankie Jr the II tried to implement some infrastructure improvements – Roberts Stadium upgrade and Hartke Pool renovations and Swonder Ice Rink improvements. But Frankie Jr the II was a banker and he was only interested in how cheaply he could get it done and not how best to get it done.
“The political will is never there because the price is too high for the governing official.”
“financing for MRO needs to be separated”
See how easy that was Weinz?
CCO,
If there are people who attended the Audit Exit Conference; and the auditors’ opinion (which will one day be published) disagrees with what was said at the Exit Conference; then Houston, we have a problem !
Recommend that affidavits be taken from those in attendance, and all audio recordings secured.
What do you want to bet there’s already been an “accident” that has destroyed any audio recordings? Besides, if the corruption reaches the Governor’s office, as I understand it does, who are we going to get to do a real investigation?
Something certainly seems to be wrong. I suspect some lower level folks will be resigning to spend more time with their families. I’m sure The Scowler has been advised there’s trouble in River City. They should have hired a pro.
Rosemary Woods is no longer available but she did an effective job for Nixon. She perfected ‘the Rosemary stretch’, it was painful to watch. It was Rosemary’s baby. She physically demonstrated how stretching from her Selectric to something else, maybe a phone or intern, could cause her to erase the 18 minutes of incrimination with a foot pedal. Pure accident.
Instead of a national blanket minimum wage indexed to the CPI or other inflation measure progressives should push for a minumum wage index based upon geographical areas.
The index should include the cost of low income housing, basic food, utlities, transportation and health care based upon a 36-37 hour work week.
“IS IT TRUE it is also doubtful that any change in the federal minimum wage would alter many personal circumstances by much over time?…”
Most likely that is not true. I don’t think the goal of most minimum wage earners is to buy a house in San Francisco. For most, the goal is to earn enough to live decently without the humiliation of having to ask for SNAP benefits and/or Medicaid.
This might have a negative effect on the Walton family, who are likely the biggest beneficiaries of public assistance in the country. If their employees are not getting SNAP benefits, that might cut into the nearly 20% if the total of those benefits that Walmart collects.
The truth is that a mechanism for automatically raising the minimum wage as cost if living increases should be passed and this issue should be forever “put to bed.”
I know all of the right-wing talking points, but there is little evidence that a raise in the minimum wage will hurt the bottom line of most businesses. It might even help some.
It seems disingenuous of the right to want to cut social programs, but keep their foot on the throats of the poorest workers, and claim they know what’s best for everyone.
This is not a game.
4.6M could be lifted out of poverty.
http://thinkprogress.org/economy/2014/01/03/3115831/minimum-wage-poverty/
As usual the CCO/Conservatives/Republicans continue to poo poo and brush off any and all attempts to lift people out of poverty. According to conners the poor are just supposed like the shat sandwiches handed out by the oligarchs. Don’t give me this horsehockey about people are supposed to work harder, smarter or improve their skills.
Americans are already working hard, we work longer more productive hours than any people on Earth.
American productivity has skyrocketed but the real wage(after inflation) increase since 1980 has been ZERO nada, zippo. The Ginni index is at all time high and our massive income/wealth inequality makes our recessions longer, and our recoveries shallower and longer lasting, that is a FACT.
CCO please stop parroting the republican/conservative party line and start looking at reality.
Didn’t this “lifting people out of poverty” start with Johnson? I don’t mean to “poo poo” on the war against poverty, but liberals must be fighting on the wrong side because your policies have resulted with more in poverty then less…except in the hypothetical calculations of college professors.
“Just one more time.” “We have it figured out this time” “It was Bush’s fault it didn’t work the last time.”
Wait a minute. You say John Dunn did not appeal the Hilton franchise application until after March 24, 2014, but that HCW announced their intention to be a Hilton franchise in the December issue of Evansville Living? Does John Dunn not read Evansville Living magazine? That seems a wee bit disingenuous.
‘… this 4th time around the May Pole for the hotel…’. I haven’t been counting but it has become a local tradition. They should bring it out of that sub-basement in the Civic Center and let everyone enjoy the levity. The May Queen says no. No lookie. The brightly colored ribbons and unmeterable festivity could lead to the voters waking up. It could even cause some sort of foolish solidarity resulting in dancing in the streets. No profit to be made there unless you can put it on a stick and deep fry it.
The minimum wage vote that McConnell saw to it didn’t pass will hurt his party. They don’t think ‘those people’ vote in the midterms, they could be wrong. In case they haven’t noticed, things are changing. Letting businesses pay something tantamount to a slave wage while sticking the money they think they saved offshore or on baubles for their mistresses will catch up with them. Cutting social programs to further enrich the already wealthy peop-a-corps will prove to be as much a losing strategy as it is downright evil. Like Brains said, raise it and let future increases kick in automatically, tracked with the cost of living in specific geographic regions.
It is ok to let those poor workers making minimum wage bring home a little more money. It won’t corrupt them too much.
A $3 an hour raise may lift them out of poverty on raise day but in the long run they will find their way back into poverty. Even if you give these people $100 per hour they will squander it all on shit and be broke again. Money does not fix willful stupidity. Take your blinders off BB. What you say has never worked before and it won’t now.
The hateful, ignorant, arrogance of your comment is staggering.
Thanks for the sweeping generalization based upon hypotheticals and absolutely zero evidence or study to support your ignorant conclusion.
So if you think I am so callous why has the rise in the minimum wage from $1 per hour to $7.25 per hour not changed the poverty rate? It is only a 625% increase. Really folks I know this is harsh but a $3 increase will not make spits difference in the poverty rate a few years from now. It will have the effect of 4 million people winning $1000 in the lottery. They will piss it all away and be in poverty anyway.
You might wish to figure in the true inflation rates over that period of time, and you’ll find your answer. The 1960’s look pretty good on the chart.
And how much of that inflation was driven by the demand for basic things like rent, gasoline, food, and utilities. You sort of prove my point that a rising minimum wage makes little or no difference in what the minimum wage will buy.
@JohnBoy:
Sure, minimum wage and the people who work for it are the reason for fifty years of inflation. Just keep believing that.
Whatever happened to the old meme about “There’s nothing wrong with honest work”??
“IS IT TRUE that unbeknownst to many people in Evansville, there is a local flavor to the NBA playoffs outside of the dumb ass of the week spectacle that the media has made out of the owner of the LA Clippers?”
“…dumb ass of the week spectacle…”? Please CCO try to maintain some professionalism.
“if these 60 years of Mayors had concentrated on infrastructure and economics instead of fun, games, and cronyism Evansville, like Lexington would most likely have two downtown hotels with little or no public handouts needed to get them?”
Lexington built an arena that has more capacity than Evansville’s current and past arena combined. They also have a nice ballpark- Whitaker Bank Park (Formerly Applebee’s Park)although it has inspired zero indirect growth because it was built in the worst part of town next to a Dollar General Store strip mall.
It wasn’t the infrastructure that Lexington invested in that made them light years better than Evansville, it’s what infrastructure they DIDN’T invest it. We see it very clearly in the Trader Joe’s article where they are able to build things like that because of their density.
Building on University Parkway, next to that interstate, and way out by N. Green River and 57 shall never be classified as “growth” when in reality it’s a shifting destruction.
Same Duane Casey got caught paying player dad $1,0000 and suspended by the NCAA
LKB the saying is “an honest days work for an honest days pay”. There is nothing honest about any transaction where the government sets the wage. Minimum wages by definition imply minimum work and skill. Market rate forces accountability and value.
When a business makes money, it is not automatically profit There are expenses to running/owning a business. Many of them the same expenses you have in your every day life. Rent, supplies(groceries & household items), utilities (electric/H20, gas etc…) and insurance (which has gone up dramatically and will continue to do so with the ACA fiasco). On top of that the employees must be paid their wages and the companies portion of the employees insurance (if they do so).
So a business has a certain amount of income budgeted for employee pay. To keep that budget amount equal they will have to lower the number of hours that employees work
An employee making $7.00 an hour can work roughly 143 hrs if the budget allows $1000 for it.
If you raise the minimum wage to $10.00 and hour then to keep in budget, the employee must have his number of hours cut to 100 hours.
If there is one employee it evens out in the end, but business with many to hundreds of employees will not cut everyones hours back, they will start letting people go. This will more than likely be those at the bottom rung of the pay scale. So in the end it causes more people to in up in poverty in the long run.
There is a second factor to this also and that comes into play when you understand that pay is based on level of experience/knowledge/seniority etc. Those that are on the second tier of the pay scale will have to have their pay increased by the same amount to be fair. As will those on the third level, in management and on up the line. So now this causes payroll to increase astronomically and to keep with in budget the company either has to 1). fire more workers or 2).raise the cost of their product.
If all business’ face this delima then the cost of living will rise and those that benefitted from the raise will still or again be left behind and in poverty. it’s a viscious cycle that can not be solved by throwing more money at it.
Brandon,
There is some validity to what your hypothetical lays out. There are also some flaws.
Here is the CBO report on the raising the minimum wage. It covers most of the variables/scenarios well including the substitution effect and wage price sensitivity.
Enjoy!
http://www.cbo.gov/sites/default/files/cbofiles/attachments/44995-MinimumWage.pdf
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