Wake up people!!!! We are not SAVING money by “falling prices” when these Wall Street owned companies employees get compensated on the back end with HUGE TAX REFUNDS!!!! Who do you think pays for this? – Yes!, those who make more that pay taxes that think they are getting a DEAL up front by beating those who work in retail into the ground. Let’s NOT forget who benefits from this in the name of HUGE profits? My question to ALL the brainiacs is… HOW DOES ONE SAVE MONEY ON FALLING PRICES WHILE THOSE WHO WORK FOR THESE CORPORATIONS GET HUGE REFUNDS WHILE THEY REPORT HUGE PROFITS? SOMEBODY HAS TO PAY FOR THIS, THIS COUNTRIES HUGE DEFICIT IS PROOF YOU HAVE BEEN DUPED ONCE AGAIN BY WALL STREET – LOL!
I agree we need to let the FREE MARKETS work, cut off ANYONE getting back more than they pay in and see how it effects what people are WILLING to work for, hmmmm?
A buss with a sign ‘$10.10’on the side arrives for a news conference in view of City Hall Thursday, March 27, 2014, in Philadelphia. Americans United for Change has a scheduled 11 state bus tour advocating for an increase in the minimum wage from $7.25 to $10.10 an hour. (AP Photo/Matt Rourke) / AP
By the numbers: minimum wage
• The first federal minimum wage was set at 25 cents an hour — the equivalent of $4.16 an hour today — for certain industries in 1938.
• The most recent increase to the federal minimum wage was in July 2009, when the federal minimum wage rose from $6.55 to $7.25.
• People who support a higher minimum wage say the baseline wage hasn’t kept up with inflation. The minimum wage in 1968 was $1.60, which would amount to $10.79 in 2014.
• In 2006, Ohioans voted to increase the state minimum wage from $5.15 to $6.85 and adjust subsequent years’ minimum wages with inflation. The constitutional amendment passed with 56.7 percent of the vote. However, voters in 22 counties opposed the change.
• Ohio’s minimum wage is $7.95, up 10 cents from 2013. The minimum wage for employees of smaller companies — those that gross less than $292,000 — is $7.25, the federal minimum wage.
• Ohio is one of 21 states that has a higher minimum wage than the federal standard.
• Ohio also has a higher minimum wages than any of its surrounding states. Michigan’s current minimum wage is $7.40 an hour; Indiana, Kentucky, Pennsylvania and West Virginia use the federal minimum wage.
Source: U.S. Department of Labor Statistics, Ohio Department of Commerce
Amy Zickefoose’s husband works long, difficult hours with machines in Tennessee, hundreds of miles from their Mansfield home. For this dangerous work, he receives $11 an hour.
State and federal politicians have proposed raising the minimum wage to $10.10 an hour by 2016, but Zickefoose said fast-food employees shouldn’t be paid that much.
“I definitely don’t feel (they) should make almost as much as my husband,” said, Zickefoose, adding that she doesn’t believe an increase would help her family. “I know his boss wouldn’t give him another dollar.”
An increase in the minimum wage, which is $7.95 an hour in Ohio, would mean layoffs and potentially higher food prices, but also better-paid workers and potentially lower costs for social services. Whether that sounds like a great or horrible idea depends largely on where you fit into the workforce.
“From the employees’ perspective, a wage increase is always appreciated,” said Randy Davies, president and CEO of the Chillicothe-Ross Chamber of Commerce. “There are many aspects a small business owner would have to adjust.”
The Congressional Budget Office estimated 500,000 workers, or 0.3 percent of the American workforce, would lose their jobs by 2016 if Congress raised the minimum wage to $10.10 an hour. However, another 16.5 million would see their wage increase, the report stated.
An estimated 1.1 million Ohio workers, those earning below $10.10 an hour, would receive an extra $1.54 billion if the minimum wage were raised, according to a report released by the Economic Policy Institute, a liberal think tank.
That would increase economic activity in Ohio by $977.3 million, according to the report, which indicated there would be little or no job loss statewide if the minimum wage were raised by $2.15.
About 3.3 million American workers, including 137,000 Ohioans, were paid at or below the federal minimum wage of $7.25 an hour in 2013, according to the U.S. Bureau of Labor Statistics. That amounts to about 4 percent of the American workforce.
A worker receiving federal minimum wage would receive $15,080 a year, which is below the federal poverty line for a family of two —$15,730. Ohio’s minimum wage worker would receive $16,536 a year; depending on each family’s size, that may or may not be adequate.
A single person would need $15,241 to have a living wage in Richland County; a family of four would require $34,750, according to the Massachusetts Institute of Technology’s living wage calculator.
Although Ohio’s minimum wage is higher than the federal minimum wage, it’s still inadequate to pay for a two-bedroom apartment, according to a National Low Income Housing Coalition study. Ohioans would have to work 70 hours a week at minimum wage to afford that living space, assuming they’re putting 30 percent of their income toward rent, the study found.
But many individuals making minimum wage take advantage of other safety net programs, such as Medicaid and income tax credits for people with lower incomes.
Fifty-two percent of front-line fast-food workers — those not in management — and their families are enrolled in one or more public programs, compared with 25 percent of the overall workforce, according to a 2013 study by the University of California Berkeley Labor Center and University of Illinois.
The report estimated the cost of public assistance for fast-food workers’ families was $7 billion a year, including $3.9 billion for Medicaid and the Children’s Health Insurance Program, which insures children whose families make too much for Medicaid and too little for public insurance. Other benefits included about $1.04 billion in food stamps and $1.91 billion in income tax credits.
Many businesses can afford to raise the minimum wage to reduce the number of employees reliant on social service programs, said Anna Chu, a policy director with the progressive ThinkProgress who wrote a report on the benefits of raising Ohio’s minimum wage for the Center for American Progress Action Fund.
“A lot of companies pay higher than minimum wage and are still profitable,” Chu said.
However, the prospect of paying employees more may be daunting for employers, especially those operating small businesses or restaurants, which work on tight profit margins, said Jim Evans, president of JK Evans & Associates, a human resources consulting firm in Zanesville.
“They will have to recoup those dollars somewhere,” Evans said..
An increase in the minimum wage means higher payroll taxes, unemployment taxes and Workers’ Compensation premiums for employers, said Karen Crutcher, co-owner of Bay Food Market and Bay Packing in Lancaster.
Those extra costs mean higher prices on products — a challenge for independent grocers already competing with low prices at chain stores. Crutcher estimated her business has raised the price of goods by 25 percent because of the rising state minimum wage.
A higher minimum wage also can play a role in hiring decisions, she said.
“We haven’t had to lay anybody off, but we can’t hire people either,” Crutcher said.
Although the restaurant industry would likely be hit the hardest by a minimum wage increase, the effect on food prices nationwide wouldn’t be dramatic, Chu said.
A restaurant hamburger likely wouldn’t increase more than 10 cents, and consumers might spend another nickel on a bag of groceries, according to a 2012 report from the Food Labor Research Center at the University of California, Berkeley, and the Food Chain Workers Alliance and Restaurant Opportunities Centers United. The study reviewed the effects of a proposal to raise minimum wage to $9.80 and increase tipped workers’ pay.
But business owners value autonomy and the opportunity to make wage decisions based on market prices.
“There’s a general sense that they would like that to be their choice and not a mandated choice,” said Don Plotts, interim president of the Richland County Area of Commerce.
Will it happen?
The biggest proponents of an increased minimum wage seem to be the people with the least power to make it happen politically.
Reps. Mike Foley, D-Cleveland, and Bob Hagan, D-Youngstown, recently introduced a bill that would raise Ohio’s minimum wage to $10.10 and make employers pay tipped employees the same wage if they could not prove employees were making it up in tips. In the Republican-controlled Ohio General Assembly, the bill might not receive a hearing.
President Barack Obama hasn’t had much more luck on the federal level. Members of the GOP-led House of Representatives have made it clear that raising the minimum wage is not a priority.
But that doesn’t mean business owners aren’t watching the topic closely, said Evans, adding that the potential effects have been debated in various human resources publications he receives.
“I think it’s going to affect every business differently, but it will affect them,” he said.
Can you live on minimum wage?
Can you live on minimum wage?
The following are estimates based on CentralOhio.com research. Different circumstances or benefits could change monthly budgets dramatically.
|Family of one||Family of two||Family of three||Family of four|
|Medicaid eligible||No||Yes||Yes||Children yes, parents no|
Source: MIT living wage calculator, U.S. Department of Agriculture, Centers for Medicare and Medicaid Services
What is missing in these comments is the political nature of this proposal.
This is a prime example of Obama’s social justice program to add to the progressive liberal voting base.
Another name would be income equality.
Increasing Federal minimum was has no effect on our economy. How many Federal workers do you think make minimum wage? Any at all?
The bottom rung on the employment ladder is for entry level individuals. It is not expected to be the foundation for raising families. If you are earning minimum wage, you have no business raising a family.
Self responsibility is the issue there. If you choose to bring children into the equation, you also choose to remain in poverty, do not expect society to bail you out of your self inflicted stupidity.
Do to Obama’s demonstrated inability to bolster our economy over the last 6 years, some people have slipped backward in wage earning and that is no fault of their own. They deserve a hand up, not a hand out. Give a man a fish story fits this situation. We need programs to educate the bottom rung individuals, and provide opportunity to be self reliant, not social reliant.
The first Obama campaign introduced the Alinsky tactic of divide and conquer. The concept of social injustice, class warfare. Turn public opinion against your opponent. And he has been very successful in doing that, while greatly expanding his base in the working class community, the bottom rung people.
This minimum wage campaign is nothing more than an extension of that agenda. Keeping the wages of CEOs vs the wages of hamburger flippers in the MSM headlines. There is no program for opportunity growth, planned or present. Why create a way out of poverty, when it has a political benefit?
In the mean while, American turns on American. The have-nots resent the successful. Social programs provide the ability to not have to work and be self reliant. The mindless, foment division in this country by pointing out the success and growth of those who worked hard for their education, worked hard to advance in corporations, and become high award wage earners. Their envy, their lack of individual success, explodes in hate filled comments like “Corporate greed” in forums like this is revealing.
I really thought when I worked hard for my education that I was doing something good for myself and my family…..but really I was better off financially when I was tending bar and receiving government benefits. At least my kids had health insurance!!! Now….10 years later I am still paying off student loans…..have no health coverage…..an empty refrigerator…..struggle to make mortgage payments…..etc…..etc
Every time minimum wage goes up…..the value of my education is decreased!! (I am an LPN) I don’t get a raise comparable to what those making minimum wage receive!!! For the last several years I will get an annual raise of 1%!!!! Definitely not enough to compete with the rising prices. Not to mention that I am not able to afford insurance for myself or my children. Obama says I should just figure out a way to come up with the $1,200.00 a month that it costs to have insurance. Sorry…..but I would rather have a warm home to go to when I finish my 12-14 hour shifts than be homeless and have insurance….you know…. IN CASE someone gets sick!!! This country is in trouble……BIG trouble!!!
My daughter makes $11/hour as a retail store asst. manager. Since she got that position (and that pay – 5 years ago), she has NOT received a raise (or is offered health insurance) – yet minimum wage has gone up 3 times. It’s an insult to those who have specific job skills to not get a raise when minimum wage goes up. She works a “skilled position”, and has NOT been compensated, so technically, her wages are decreasing every time there is a raise in the minimum wage.
The 10 largest occupations accounted for 21 percent of total employment in
May 2013. In addition to retail salespersons and cashiers, the largest occupations
included combined food preparation and serving workers, including fast food; general
office clerks; registered nurse; waiters and waitresses; and customer service
representatives. This is according to the Bureau of Labor and Statistics. Also approximately 12% of college graduates are unemployed.
I just read an article by Thomas Sowell about how raising minimum wage is devastating to young black teens who want to work. Naturally the Republicans are too stupid to explain why raising the minimum wages hurts more people than it helps. I would like to see this broken down a bit further. A good chunk of minimum wage workers are from families who overall earn a reasonable family income. I suspect a very, very small percentage of minimum wage workers are the sole provider. Also the report does not say anything about earned income tax credit which was designed to help low wage workers.
Want to see wages increase? How about more demand for labor. In North Dakota where there is an energy boom (Fracking) and under 3% unemployment some of the fast food places are paying a bonus plus $16 an hour to get attract workers. My point is improve the economy through energy production and growth policies and wages will increase. As Tod mentioned government economic federal reserve policies are hurting job opportunities. The real unemployment rate (U-6) in this country last time I checked is closer to 16%. We need to rebuild and expand our manufacturing base that would help blue collar workers. But the current job killing policies and immoral spending in D.C. is killing mainstream America. Recently on a one day trip to Belgium Obama took entourage of 600 + additional 747’s. + 30 cars. + helicopters, etc. The opulence in the Washington DC world is a disconnect with fly over country. We need an economic boom in this country but the elitists in D.C. don’t give a damn about the rest of the country.
Terry Shrewsberry · Top Commenter
Mimimum income people should still be able to survive….food and ‘stuff’ like that…
The lowest paying jobs should not be filled with people expecting to make a living from them. They should be filled with mainly young people who use them as an initial foothold into the labor force to gain skills for a better paying job. If you fill those jobs with people who are going no where, you eliminate the bottom rung for those who wish to climb the ladder of success.
If you think people should earn more at their low-to-no skill -or at least not in high demand- job, why don’t you take it upon yourself to generously tip every one of those people you meet? Next time you buy a burger, don’t pay $5 or whatever the menu says. Instead, fork over a $20 or $50 bill and tell the person to divvy it up with his fellow minimum wage (or less, for food service) earners. Put your money where your mouth is.
It’s all pointless anyway, because prices will rise until the lowest wage earners are back where they started from. Instead, the real solution is two-fold: 1. End the Federal Reserve and their inflationary monetary policy and return to using Constitutional, sound money. 2. Gain skills or produce something that others are willing to pay for. And finally, recognize that no matter how badly you want everyone to be well-off, it just is not going to happen. Never has, never will. That is just a fact of life.
Your argument is baseless, the minimum wage has not gone up in over 5 years, but prices have, why? How do people “gain skills” if they can not afford to? How is it that ceo’s salaries continue to increase, but you never mention this in your argument against higher prices, give the worker 5., you would have to give the ceo, a hundred!! Do you know that 98% of the jobs created since 1990 are low wage no benefit jobs?
Just like the argument that tax breaks create jobs, they haven’t, raising the minimum wage would have a negligible effect on prices.
You do realize that corporate profits are at an all time high, don’t you? So we should take tax money and subsidize their workers for them?
Guy Sims its no worse then the senior citizen who gets a losey increase in their SS, just so medicare part b can take it, then everything else goes up, taking that measly $23 and another $50 or more….those cost of living adjustments are a joke….same would happen if that wage went up. It looks good on paper only.
Guy Sims, here are my answers to your comments. Format: sections of your comment ———my answer.
“..minimum wage has not gone up in over 5 years, but prices have, why?” ———The answer to that lies in the destructive monetary policy of the Federal Reserve. Quantitative Easing is slowly making its way down to our level. When the money supply increases faster than real wealth is created (work is performed), the value decreases. Double the supply of money and prices will double because the money is worth half as much. It is taking time because it is going to the bigwigs (trans-national corporations and banks) first and much of it is being used to prop up the stock market. Wages for many have declined because of foreign competition/trade deals that are designed to benefit trans-national corporations. Trade deals like the one Clinton signed, NAFTA (If Clinton hadn’t signed it, GW would have; this is not a partisan issue). http://en.wikipedia.org/
wiki/ United_States_free_trade_ag reements They call them “Free Trade Agreements”, but they are no more about free trade than the Patriot Act is about patriotism. What they are, are mechanisms for the oligarchy to further enrich themselves at the expense of all of us little sheep who graze on their farms.
“How do people “gain skills” if they can not afford to?” ———–The same way they always have, by stopping with the no-can-do excuses and actually using some initiative and going to libraries and networking with people who can help them and learning new things all the time.
“How is it that ceo’s salaries continue to increase, but you never mention this in your argument against higher prices, give the worker 5., you would have to give the ceo, a hundred!! Do you know that 98% of the jobs created since 1990 are low wage no benefit jobs?” ———–I refer you to my answer to the minimum wage v. price question.
“Just like the argument that tax breaks create jobs, they haven’t, raising the minimum wage would have a negligible effect on prices.” ———the minimum wage will not only drive prices higher, but even more significantly unemployment will increase. Employers such as McDonalds will replace expensive low-skill labor with labor-saving machinery such as automated order takers and robots that make the burgers. http://www.redstate.com/
2013/12/08/ coming-to-a-fast-food-resta urant-near-you-machines-th at-wont-be-paying-seiu-due s/
“You do realize that corporate profits are at an all time high, don’t you?” ——–for the big companies and trans-nationals who benefit from trade agreements and corporate welfare.
“So we should take tax money and subsidize their workers for them?” ———-no, that is the problem, we are already subsidizing them. Crony corporatism is killing Main Street.
For more information about the minimum wage, I recommend reading this: http://
alibertarianperspective.wor dpress.com/2013/08/14/ tom-woods-on-the-minimum-wa gers/
Very interesting knowledgeable post. Thanks.
What is you view of a simplified flat tax? Also do you think repatriating off shore corporate/manufacturing funds contingent on building and hiring here would be beneficial to economic growth and jobs?
I have long disagreed with the the so called service economy and trade deficits. I know we have to compete globally but I refuse to believe we cannot make more stuff here at home and provide more jobs competitively. Those jobs would pay more than minimum wage.
Pattie Thomas · Top Commenter
Corporations keeping their profits offshore, instead of investing in American business is part of the problem.
Giving more and more breaks to the wealthy in hopes of job creation, has proven to not work.
Destructive policies towards workers and unions, instituted by Reagan and being doubled down on by current republicans has destroyed the working class.
98% of the jobs created since 1990 are low wage jobs. More people that ever are working low wage jobs.
Greg Rohn · Top Commenter
There are two sides to that coin, Greg. If your low to non-existent job skills require you to be paid more than you are worth (because of some arbitrary law), you need to get an education and/or skills or at least be willing to do work that others aren’t but are in high(er) demand.
Why $10.10? Why not $100.10? That way we could all be wealthy! Bogus leftist argument for the minimum wage is strictly bogus.
Colleen Dennison-Snyder · Top CommenterAlthough some jobs don’t require highly skilled workers, they still need to pay enough to be an incentive to get people off of our welfare rolls and back to work. And Tod Mills comment about getting an education…unfortunately,
graduates of today go into the job market looking at starting wages that are equal to starting wages for graduates back in the 2000’s decade. Wages are not keeping up with inflation at all…and many of us middle class, former middle management are now “under employed” or settling for less money than we made 5 or 10 years ago. I’m not sure I can implore anyone to get an education now, except to tell them that they may get (maybe) $2/hr more than the non-college graduate (meaning they’ll start out at about $12/hr, maybe)
Greg Rohn · Top CommenterI, personally am an old retiree and I made enough while working, to live comfortably. I’m also old enough to remember a time when a man could go get a job and earn enough to support his family while his wife stayed home and cared for the family. Even the low skill workers were able to do this. After a series of foreign trade deals starting in the late 1960’s and early 1970’s, changes in the tax laws, changes in banking regulations and labor laws, the standard of living of working people in this country has steadily declined. The rise of the multi-national corporations and their influence on the political process has contributed to the decline in worker living standards. Insofar as the $100.00/hr min wage portion of the argument, that is a debate tactic referred to as “reducing the argument to the absurd”, and is generally used when one’s argument falls apart. Nobody is considering changing the min wage from 8 bucks to 100 bucks. If there were any fairness, the min wage would be inflation adjusted back to around 1975 levels adjusted to 2014 dollars.
Colleen Dennison-Snyder Certainly in many, if not most, cases it would be foolish to go into debt to get an education. Government guaranteed student loans have gone a long way to reduce the market value of an education and that policy is widening the wealth gap (http://finance.yahoo.com/
news/ 1-trillion-student-loan-deb t-141440433.html).
College is not the only way to gain skills. Just a couple weeks ago I drove past a local company who was advertising for welders. That is something one can pick up with some reading, a bunch of practice, and maybe some pointers from someone who already has the skills. Certification can follow skill acquisition if desired or the position requires it. And the pay is considerably better than many jobs, in part because it requires a level of skill and in part because a lot of people just aren’t willing to do the work.
Historically, apprenticeships played an important part in many people’s vocational development by providing a path for growth, but over the years that valuable institution has fallen out of favor.
The current mess is due to primarily a couple of things: 1. Government policies (just two examples are: poor monetary and trade policies that make foreign markets artificially attractive to employers). 2. A society that places reduced emphasis on the value of education and hard work and instead is often caught up in diversions.
Nobody can live on $7.95 an hour. They keep threatening “The price of food will increase” are they serious? Food has went up 40% in the last 8 yrs. When people started protesting out west for McDonalds to raise wages and McDonalds went on to become full blown idiots about it. We sat down and done the math for them. If they would raise the price of all of their sandwiches 5 CENTS it wouldn’t cut into profit or add any expenses to their budget. Everyone, no matter if their job is dangerous or mundane deserves an honest days pay for an honest days work. The people that go to work 40 hours a week and has to decide if they are going to buy food or pay the electric bill because there isn’t enough money for both is BS. I do understand the small business side of it. The restaurant business is a tough business. But, if people are making more money they would spend more money.
Steve Barber · Top CommenterThose of you who think fast food people don’t deserve to making a better wage–lets see you go in there and deal with that fast paced job, and deal with the hate filled customers. The first thing that will come out of your mouth is ” This job doesn’t pay enough for me to put up with this!” Mark my word! I’ll admit, $10.10 is a bit much, but it is impossible for anyone to live on $7.95, and the majority of the jobs around this area do not pay more than minimum wage.
The problem, Steve, is it isn’t just the giant fast food corporations that will be forced to increase their wages. Small independent businesses will also to have to pay increased wages. When I say small I’m talking about 5-10 employees and they are already on tight margins if they are lucky enough to be making a profit. And it often means they will also need to increase wages for employees making above the minimum wage. I disagree businesses can always increase their prices to off set the increase in wages. That simply is not always the case especially with smaller businesses. As I said in an earlier post lets get the economy booming and then watch wages increase.