Does minimum wage hike cost us jobs?

BINGO!

 

A very bad idea ! Are you ready to pay 40% more for the goods you buy ? Prepared to see another 25 million ILLEGALS enter our country ? How many more would you like to add to the welfare rolls ? The people working these jobs currently are either high school drop outs , have GED or at best simple high school , once an employer has to pay $15 an hour the bar WILL go UP , where in the h*ll are they going to work then ?
If you think many small businesses can survive the additional cost your nuts , sorry !

 

You may be correct. Not sure how to change that now that we are at this point though. Do we just give up?

 

Interesting.

 

We will once again value the acquiring of skills when our easy lifestyle is no longer sustainable. But it will take poverty and suffering to teach that. Necessity is the mother of invention.

 

It is actually not that simple. This is not true of all taxes. The land value tax cannot be passed to consumers, nor does it reduce wages. If a land value tax is currently levied at 5% of the lands annual rental value and the tax is increased to 100% of the lands annual rental value, then none of that increased cost can be passed to the consumer. The only effect of an increasing land value tax is to reduce the exchange prices of land … or in other words, it makes land CHEAPER to buy.

I believe the land value tax is the only tax that actually reduces the cost of starting a business. The higher the land value tax is levied the less it costs to open and operate a business.

 

I beg to differ, it is that simple. A land value tax has anything to do with running a business. It used to levy taxes on unimproved land.

 

I agree.

 

Would a wage increase make a difference?

 

People are paid fair market value. Employers pay there employees what the market value is if the employees want to make more they need to get more education or skills or open their own business. Businesses are in business to make profit not to provide a living for employees.

 

If we lived in a free market economy that might be true but we do not so it isn't.
Many people are paid at below the market value of their labour because the government subsidizes their employment, thereby lowering the entire wage curve and reducing the fair market wages of all workers.

It is extremely naive to believe that employer employee wage negotiation is a free market activity.

 

I believe we should simply reserve labor from the job market at the rock bottom cost of a form of minimum wage that clears our poverty guidelines; and let market based wages be established from that fixed Standard.

 

This is the point that most miss when trying to fix the issue. This has to be realized or any attempt is futile.

 

In my area, when minimum wage was $6.55/hr, a 20 oz soft drink averaged $0.99 prior to the wage hike in 2009. Within a year of the mandated $7.25/hr the same soft drinks averaged $1.69. So minimum wage workers made $0.70 more per hour, and that one soft drink went up the same amount.
Businesses can't be expected to eat the extra costs accrued by paying higher wages. Raising wages across the bored doesn't help the low wage worker, it hinders them. It creates a snowball effect.
We'll use corn as an example (haven't been in the fields in a long time, so I'm sure I'll miss some steps.) Spray field to get rid of existing weeds. Involves someone manufacturing the weed killer, someone delivering it, someone actually spraying it. Have to plow and cultivate, someone has to do the work. Order seeds. Someone has to deliver them. Plant seeds. Order and have delivered herbicide, insecticide and fungicide. Have said 'cides sprayed on fields. Maintain irrigation pumps if necessary. Pick corn. Requires combine and truck drivers. Transported to grain bins, if necessary, and maintained. Delivered to processor, if necessary. Transported and delivered to grocery store. Unloaded and put on display. Now take every one of those steps and make them more expensive to do, because payroll gets more expensive (because of higher wages and mandatory health insurance). Add on top of that the cost of equipment, implements, electricity, etc. is higher because all those providing such things have to charge more in order to make payroll.
Bottom line; if minimum wage goes up so does the cost of everything else.