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What Actually Happens When You Raise the Minimum Wage

Contrary to popular belief, raising the minimum wage won’t make everyone richer, but it will make a great deal of poor people poorer—or more accurately, out of work.

Advocates for raising the minimum wage are attempting the impossible, because it is impossible to change the value of a thing by mere fiat. If a particular McDonald’s employee earns the company $10 an hour, but the law forces McDonald’s to pay him $15 an hour, the employee won’t get any richer, but he will get fired.

Across the country, the world’s most successful fast food chain has started replacing people with robots—automated screens—to “give customers more options as they order.” Undoubtedly, these electronic menus may actually provide more options—but they certainly present the franchise with a slightly cheaper bill.

Customers may take McDonalds’ low prices for granted, but in a market based on human decisions they are a reflection of the value of fast food. Customers don’t come to McDonald’s for a gourmet meal—they come to eat fast and on the cheap. In the past year, the fast food giant has struggled to make ends meet as people increasingly favor “fast casual” restaurants like Chipotle—which markets higher quality food at slightly higher prices.

In order to stay afloat, McDonald’s has to keep its edge, and that means lower prices. If the government requires fast food restaurants to pay workers more, the restaurants will do so—but they can only make ends meet by hiring fewer employees.

Politically, a high minimum wage may sound like a raise, but in the competition of the free market, it looks more like a pink slip—even more for businesses than for employees.

“I am not a charity,” wrote Kevin McNamee, owner of a small business in Los Angeles, CA, which just voted to increase the minimum wage to $15 in 2020. “I can’t raise my product prices because of pricing pressure. I can’t reduce my expenses; in fact, salaries are my greatest expense, and $15 per hour increases my expenses and reduces my profit.”

“A high minimum wage may sound like a raise, but it looks more like a pink slip.”

Some advocates of the $15 minimum wage wish to “stick it to the man,” hitting the billionaire CEOs. This small business CEO, however, claims that “last year, my employees made more than I, the owner, did. I am still trying to pay off the line of credit that got me through the recession.”

As the AEI’s Mark Perry explains, increasing the minimum wage from $9 per hour to $15 works out to a yearly tax of $12,480 on employers. Ironically, this tax hike may help the billionaires by hurting the middle class. Big businesses can afford to take a hit, but the mom-and-pop shops may not be so lucky—and as smaller businesses close their doors, big businesses don’t have to face as much competition.

Some people support an increase in the minimum wage because they believe the Marxist idea that profit itself is bad. Karl Marx’s theory of surplus value states that a company’s profits should not exceed the cost of the worker’s labor. In other words, people should only pay for a good exactly what it cost the worker to make it.

While this sounds good in theory, it makes no sense in practice. In a free market, a customer will only buy a product if he values that product more than his own money. If I ask you to trade your shiny new Lamborghini for my five-year-old Hyundai, you would laugh at me. That is, unless I was holding a gun to your head.

This is the basic concept behind the minimum wage. When an employee asks his boss to pay him more than he is worth, the boss laughs. But when government holds the gun to a business owner’s head and says “pay your employees more than their time is worth to you,” the boss has a few options. He can fire some employees and pay others more, he can leave the area to avoid the government, or he can take a loss and likely go out of business.

One thing is certain, however—customers won’t necessarily agree to pay more for a product just because the owner has to pay his employees more. If the cost of labor increases and the cost of a business’ product or service does not, that company is going to take a hit—often a loss it cannot afford.

The idea that a business’ profit should be entirely redistributed to employees will only make that business less effective. Without extra money to invest in new products, research and development, and even training for employees, a business would not be as effective in helping its customers. If a business loses customers, it cannot afford to pay employees. Without profit, no one gets paid.

If politicians want to support a cause that will actually help poor people make more money, they should champion free market reforms. Smaller taxes and smarter regulations will allow businesses to continue doing what they do best—offering goods and services at prices that customers are actually willing to pay.

If we support more opportunity now, more companies will be able to hire more workers. As those workers gain experience, their work will become more valuable, and the wage which voters are aching to force by law may just come about on its own.

  • Mike

    So
    the guy who hired the illegal to work for cheap… now has to pay that
    no-longer-illegal quadruple what he used to. NOT. He’s hiring a new
    illegal for cheap. …oh and by the way, now that will lead to a lot of
    unemployement that who pays for? How hard is THAT to get your head
    around, and why aren’t our so-called-leaders considering the obvious?
    Because you let them, hello?

    • Gaston

      You make a great point supporting immigration reform Mike. So now there would be a leveled plain in between “illegals and “legals”, eliminating the problem of added uneployment, and even adding more jobs to the economy. I knew that you were a smart guy.

    • sm8

      but what if the guy who hired the illegal to work, hired the illegal not because of being cheap, but for willing to work?

      • Mike

        If he’s such a nice guy, sponsor the illegal, and help make him permanent.

  • Jim Kress

    Getting people out of work is intentional. If unemployed, they become dependent on the government. The real goal of the $15 “minimum wage” zealots is to make more people dependent on the government not to increase their earnings.

    • Gaston

      So how would that benefit anyone? left or right? Your argument makes no sense. Let me guess; you don’t make minimal wage, and you consider yourself a conservative. You just agree with what has been told to you that any kind of economic improvement that actually benefit people not corporations is a bad idea. I challenge you to use critical thinking.

      • Jim Kress

        “So how would that benefit anyone?”

        It benefits those in power by creating a class of slaves who are totally dependant on the political elite for survival. This a methodology taken straight out of Alinsky, as are the rest of your remarks.

      • Andrea Hinkley

        They have so many opertunities out there for young adults to get an education and it cost them close to nothing. They just have to put effect in. This person in my mind chose to live like that. They have online schooling so if they can’t make it to the campus they can take classes online. For a busy schedule person me in going to collage full time paying nothing and have a full time job you know why because I know If I don’t better my education I’ll stay in the same financial situation I am in. People say minimal wage isn’t livable move prices fluctuate through each state I pay 400 a month everything included people I hear complaining but yet they don’t put forth any efforts to try and make it better for themselves. So the way I see it as do something about it but if you dont. Don’t complain

        • Alyssa

          I agree with for the most part. But when you have a learning disability and haft to work full time going to isnt realistic because now you can only take so many classes at a time to fit study time, tutoring exc. But there is always a way to be successful maybe not the same someone else but still theres a way. No we can not all get those really high paying jobs but to just be a free loader and lazy and not even try i find disgusting. So i agree with you about people choosing to live like that. I just dont think we all can have a ton of degrees while having to work full time to live and schooling is not free. Other than that i think raising minimum wage that high is absurd as well. My husband and i both have learning disabilities come from poor families and dont qualify for any help but we still managed to own a home. Have our own cars. Decent clothes and a savings account. Further more how about we stop helping these scumbags who dont get off their butts and work but keep popping babies out so yes definatly your right its about choices people make and their willingness to try and improve their situation.

        • It’s not important

          A college recruiter recently told me that 84% of his graduates go on to graduate school. That is a symptom that we have too many graduates. He said that health care professionals and engineers generally join the workforce after completing their bachelors degree. If you are a student, do yourself a favor. Apply for jobs that you think you can get with the degree that you are working on. Don’t use your real name of course, then see how many replies you get. If you get no replies, your degree field is fully manned, or overmanned. That is usually the case. My friends have advanced degrees in chemistry, engineering, human resources and business, but none of them work in the field that they studied. All of them work in jobs that could be accomplished by anyone with eighth grade level skills. I’m just saying that college is great and all, but we shipped engineering, chemistry, and many other jobs overseas.

        • Gaston

          Andrea first of all good for you and congratulations, you seem to have your life under control and a clear pathg to your goals, I’m the same way, changed careers going to school bought a small house with a low mortgage and we have done it in such a way that even with one income we dont even stress about money. I know that i can live with $400 a month too, and i have done close to that, but the reality is that most people can’t so when they have no education and make minmal wage maybe even $800 in a month but they dont have the education at home or school that thaught them to manage their money and that they can live small with little money. I mean your argument is to just learn to manage money better so you can live with less; do you not think that people poor as shit havent said that to themselves and tried hundreds of times? they just dont have the tools and probably have kids too. If it was as easy as telling people to do the right thing i thing there would not be problems in the world, in the united states the big mayority of people have the chance to live a life were they don’t worry about money, but also the big mayority spend way too much and don’t know how to live small, also the system is rigged to convince to buy mor and more. That’s why i think that raising the minimal wage is a more realistic solution.

  • Craig Spinks

    What is the systematic evidence supporting this assertion? Quote me chapter and verse from legitimate business publications in support of your thesis. Anecdote and opinion are no substitutes for rational analyses of empirical data. By the way, Lord Keynes presented his “General Theory” to support what happens in an economy as opposed to the “Classical Theory” which identified what should happen.

    • Gaston

      THEY GOT NOTHING, first is an article without sources, and the Author shows no credentials or education, TYLER O’NEIL is just a paid “freelance writer” with no credentials to be found anywhere online (I followed the money), just google him he is up for hire for any bogus right wing pro corporation site. Apparently he is a “self though expert in everything” (he writes about politics, economics, social policy, theology, science, you name it) EX:http://www.valuesandcapitalism.com/author/tyleroneil/

      If you follow who runs the very site you are on under such pretty name:
      VALUES AND CAPITALISM=run by the American Enterprise Institute (just look under “about” in this site) of which one of the Koch brothers is the “ambassador”=which receives money from all kinds of pro business “funnel” non profits, but also directly from big companies like the The Carlyle Group, (20 million in 2014), Exxon Mobil (1.2 million) and many more hidden big corporations under layers of non profits, including the Koch brothers.

      All this made up websites, experts and media outlets, put out all kind of misleading information, and fake studies to promote de-regulation of big companies and convince you of anything they want, so they can continue to rape you and make more money.

      In the second link you can also see how The American Enterprise Institute was paying scientists $10,000 each for writing an article that denies global warming.

      WHAT A COINCIDENCE THE BIG CORPORATION FOUNDED (AND MADE UP) “NEWS” WEBSITE IS TRYING TO CONVINCE YOU THAT HAVING TO PAY EMPLOYEES MORE IS BAD FOR EVERYONE
      my sources:
      http://www.nytimes.com/2014/02/25/us/politics/in-new-home-policy-group-gets-big-gift.html?ref=topics
      http://www.theguardian.com/environment/2007/feb/02/frontpagenews.climatechange

      WATCH MY COMMENT DISSAPEAR TOO

      • Alex Demoted

        Credentials are not required to explain common sense.

        • Gaston

          Credentials are actually required to make an assertion through a written article that pretends to be some kind of news piece, it is quite common to disclose your sources in a serious website; that’s one of the reasons this one is not. And besides, common sense is overrated, how you prove an assertion is to actually look at real numbers and statistics on the matter instead of just coming up with an answer to the question, claim is common sense, and just call it the truth. Not that long ago we though that the sun gravitated around the earth, and it was common sense, off course we saw with our own eyes how the sun moved across the sky, not until we analyzed it in a scientific manner we found that common sense was wrong.

      • Only this article isn’t about having to pay employees more, it is about the government setting an arbitrary min wage. The point is supply and demand should dictate wages. The answer isnt higher min wage and it MORE jobs so companies are competing for people’s services.

  • tomstur

    If 15.00 dollars an hour is the magic number , why not bring the salaries of our infamous representatives and their appointees as well as the judges, justices, all government employees to this magical minimum. I think this would carry a lot more punch than the exorbitant overage they earn today. Lets price realistate by actual hourly rates and not labor costs, automobiles by actual hourly rates and not labor costs. Where does this end or is this as benign as any scavenger hunt ravaged by retrobutive servitude. I thought ideas that work one way also work in reverse. If we need more money in that means we need less money out, or is it the other way. I know if more goes out more must be taken (Taken in). Hey look I promised not one penny of tax increases not one I promise not anyway, anyhow. Funny I finally understand what my mother meant when she said anyhow. End of conversation folks.

  • ken-walz

    When the middle-class folk start fighting the poor, the super rich idiots win. Raising the minimum is a small solution, a baby step toward kickstarting a rather stagnant economy. The Federal Reserve has lost it’s plot. It lost it when it bailed out Wall Street Financiers in 2008 who invest money outside the US. If some of that bailout money had been put into US local small businesses, these quibbles about minimum wage would be non existent. People need to know who the real enemy is. Blaming the poor and degenerate is like blaming a raindrop for causing a Tsunami. The more the Fed dumps our hard earned tax payer money into Wall Street, the more inequality, more crime, more student loan debt, more private debt rises and the more the unknowing middle-class fights the poor & the richer the super rich buy more private jets.

  • AFBooks

    Very astute article that enunciates sound economic theory lost on most economists and politicians.

  • guerra

    Do you want to harsh truth? Our economy is bound to fail and that is a good thing. Sooner we realize that Capitalism is some type of illusionary race to manufacture and sell as much crap as you possibly can before you die, with no true intent or goal. We pat ourselves on the back b/c we educate so well, so we can be fine players in this system of no goal. Not to say that great accomplishments haven’t come out of competition through capitalism, i believe we are a much more evolved and liquid economy and we need to know when enough is enough. Stop this race. We have the resources to create human paradise but we don’t because of money. Anyway if we must to capitalism….These stories above are unproven scare tactics that have no grounds as the political, economic, not to mention technological aspects of our culture that we live in now are unmatched throughout any time in the history of mankind. There is nothing to compare this moment to. There is no book to read or event to compare with b/c the variables are not equivalent. 15 and hour will not kill your grandma and will not hurt anything except for the rich who cannot bare the thought of other humans as equals. they would rather u wash their car and cook their food so u have the ability to be an egotistical arrogant dick with most of your time. Much love all!

    • The only reason Capitalism has been less effective the last 50 years is due to government interference. The left’s search for Utopia is hilarious.

      The rich will be the least impacted by $15 an hour min wage. Poor people and people making just over min wage will be impacted the most.

  • guerra

    cannot bare the though of others as equals. especially brown people. thats your reality. live in it, embrace your hate. thats all its good for is your ego.

    • What are you talking about, this has nothing to do with race.

      • guerra

        Do all humans actually have a fare shot Or are brown people in underveloped countries taken advantage of and raped simply due to the fact that other countries have mastered Capitalism and declared the entire world needs to follow suit. Hence the disregard for indigenous brown people, otherwise known as indirect racism.

        • That is a total stretch. How do you get from a Free Market to human injustices and rape?

  • Charles Davy

    While I do think it is important to have a minimum wage (because someone is always willing to work for less as was seen during the industrial revolution) the minimum can’t be raised to a point where it jeopardizes small business’s.

    Personally I think the minimum wage should stay the same and then there should be a limit on the difference between the salary of the highest and lowest payed employee in the company. For example the highest payed employee would only be allowed to be payed 30X what the lowest payed employee would be payed.

    • John Smith

      “While I do think it is important to have a minimum wage (because someone
      is always willing to work for less as was seen during the industrial
      revolution)”

      wrong. chinese worker pay is increasing every year and it’s not because government is increasing minimum wage, it’s because companies are competing for workers, and the increase in skilled workers decreases the number of unskilled workers, therefore price of unskilled workers is increasing.

      “Personally I think the minimum wage should stay the same and then there
      should be a limit on the difference between the salary of the highest
      and lowest payed employee in the company. For example the highest payed employee would only be allowed to be payed 30X what the lowest payed employee would be payed”

      no employee makes 30x the lowest paid employee. only CEOs make that much, and CEOs hold the entire business in their hands. they can make or break it. for example, top earning CEO, google CEO is paid 100 million a year. if he was capped at $900k a year like you propose, would he have any incentive at all to take a position that is worth 100 million a year with all that responsibility? also, let’s say google didn’t pay him 100 million, why do you assume that money would go anywhere other than shareholders? his pay came in the form of google shares anyways, as it usually does.

  • Brad Viets

    If we raise the non-skilled workers wage then we must raise the semi-skilled and skilled workers wage also… and so on.

    Why would a semi-skilled worker agree to get the same wage as a non-skilled worker? Or why would a skilled worker agree to the same wage as a semi-skilled worker?

    The effect of raising the minimum wage causes increases all the way up the chain. Either the business goes out of business or the prices of goods and services goes up – inflation.

    • Marilyn Crosbie

      My argument exactly! Also, when a worker works overtime (not often these days) the employer must pay that person time and a half, so at $15/hr. if that person works an extra hour in a day, that would make the extra hour cost the employer $22.50 for that hour.

    • SaniK

      I’m a semi skilled worker and make minimum, so for me its a 5$ raise. In the hotel industry they all pay you very little unless you move into upper management which is difficult. I think they should decreases minimum wage and give it to semi skilled workers who are out of college or have work experience but cant find a skilled job in this economy. What do you think?

  • justmy2pennies2012

    Well, I’m torn in between raising the minimum wage, but not to $15 an hour, and not raising it at all. I haven’t worked for minimum wage as a non-skilled worker in decades. But as a skilled worker, working as a contractor, i am often asked or presented with contract to hire work that desires a skilled, degreed individual with 8 or more years experience, and possibly a certification or two. I don’t care what part of the USA you are in, a person (say a CPA) with a degree should be making more than $25 an hour. Part of the reason minimum wage and labor laws came into existence was to grant workers “right” employers were denying them. Entry level salaries for college graduates are low or have flat-lined, while we are trying to help the “un-skilled” or minimal skilled workforce. Like many have stated, raising the minimum wage this high may cause a higher unemployment rate for the same group of workers the law is trying to “help”. A better alternative is training grants and scholarships to lift them out of minimum wage jobs and into the “skilled sector”.

    • Marilyn Crosbie

      Yes, never in history that I know of has the minimum wage jumped like this. In British Columbia, the minimum wage is $10 something an hour. (I’m not sure, as I am now retired and I don’t know anyone making minimum wage either). It would make sense to raise it to $11 or even $12/hr., but any more than that, simply will not work.

  • the best of the best

    inflation of the bill due to wage increase will draw prices up, it was mentioned that customers may not want to pay more, yet since it will be universal they will likely just have to. Inflation would force them into complying with the rise in cost.
    … maybe im wrong though idk

    • Horsethief666

      Well some things they’d have to pay more for like food and such. But you can kiss your 65″ smart tv goodbye.

  • Bo

    So let me get this straight. People who works at fat food chains sound get a 5 dollar raise(California) but people who went to school and took out loans does not? An increase of $5/hr means now that I make that much less because the cost of goods will go up. Why can’t we all get a raise equal to that of fat food workers?

    • Asterisk

      Actually, the idea is that their pay would only go up because of the minimum wage. If you are skilled and earning $15/hr, proportionately-speaking, you’re not earning enough, especially compare to the housing market. You can’t live comfortably in most places in California on $15/hr. So if you went to school and got a job and made that much, you’re still in bad shape. That doesn’t sound a little bit messed up to you? Meanwhile, these companies are earning billions of dollars each year and the C-level folks in it are pocketing enough to pay your salary to everyone working for the company for a year or longer. The wealth disparity is staggering.

      Most companies would have to jump and increase the pay of skilled workers, or they’d risk losing their talent to cheaper, less-skilled jobs.

      • Jesse Steele

        In my experience it almost never works that way. I only ever had one job where I got a raise when minimum wage went up because my pay was tied to minimum wage e.g. 2x minimum wage. I worked a other places during minimum wage increases at state levels where there was zero effect on my wage. What was affected was the price of food and necessities. Those things will often go up just because people are talking about raising the minimum wage. I now farm and see another interesting part of this equation. The prices I am paid for what I produce will go down at the same time prices go up at the market. So it would seem the middleman types and retail/end sellers are protected while producers and consumers are impacted.

      • Horsethief666

        CEOs don’t make enough to pay for that. If a company has a million employees and the CEO makes 20 million than that’s only 20 bucks a year for everyone if the CEO made 0.

        • keepITreal

          Yeah, there’s no way that CEO can possibly survive off a measly $2-3M a year. Poor guy/gal.

          • Horsethief666

            Well he earned it so why can’t he keep it? The rich are only rich because you buy their product. Steve jobs only became a billionaire because you morons bought his iPhones. Then you complain he was too rich yet you bask in this advanced world brought to you by engineering science and charismatic leaders who can deliver to the people. Most people are just leechers in this world who want everything but don’t want to contribute anything.

          • keepITreal

            Yeah, and I suppose you ‘live off the land’ in the purest ways possible??? You do your own hunting, fishing, sewing, pump your own water, crop harvesting, built yourself a nice log cabin out in the boonies, etc. We all pay these fools. There’s no way around it.

  • sm8

    First, no loopholes, every penny made is income, no bs capital gain, investment and bla-bla-bla, you made that penny, you pay taxes on. Then we need wage regulation, a fair wage formula, highest paid may not make more than 50x the lowest paid, evenly divided all across, problem solved. Capitalists on top use this system among them, but quickly call it socialism when it would benefit those who actually do all the work.

    • John Smith

      you sound like a child who just got into politics and listened to a load of horseshit from liberal propaganda and thinks he knows how to solve all the problems. a dime a dozen like you.

      • sm8

        you sound like that penis you’re blowing is stuck in your mouth, and now you’re blaming me for it when I warned you not to suck it.

        • John Smith

          why you always thinking about penis? you a gay boi? faggot

          • sm8

            such of weak comeback, you can do better than that, come on, take a break from sucking that cock and do better!

          • Aaron Rock

            And there are your true colors.

          • sm8

            stupid can only be fought with stupider, haven’t you learned it yet?

      • tracy Smith

        Yeah but he’s speaking the truth.

    • Complete garbage, there is no “fair wage formula” and the government has ZERO right to dictate how much a CEO or any one else is allowed to earn. It is just group think nonsense by people who have no clue how capitalism or a free market should actually work. The government regulations put on businesses the last 60 years is what has crippled our economy.

      • sm8

        see this “government regulation is the culprit” bullshit is so old, yawn. It’s about money bruh, money, nothing else. Whoever is on the top will take the most, and not because the one on top does the work, but because the one on top has the keys. See my nigga, the real problem is, dummies like you bought the bull that just because the nigga on top has the keys, you have to suck his dick. Wake up ho, haven’t you sucked enough dick yet?

        • Dummies like me understand to require skills that are in demand so I can dictate how much I make instead of sitting around waiting for the government to help me out. Dummies like me, start small businesses and hire other dummies like me who are skilled and pay them what they are worth, not what a fool like you thinks they are worth.

          • sm8

            Gallons of geez all over your face and you still can’t see why you smell cum your entire life, ho. Coal didn’t die because of regulation nigga, the bitches mining it died, because of the lack of no-nos before. More importantly, when it costs more to mine coal than making you suck dicks, come on, you know they gonna go with fracking your face with cum to get to your fart. Steel, are you fucking kidding? Why would we suck our dicks ourselves, when we can have you suck our dicks for much less, little to no work, and we can bitch slap you for not swallowing right. The only skill you have is sucking dicks and the only small business you built is a cum well. You’re nothing, but a nigga sitting on a couch waiting for another dick to cum on your face. Playuh!

          • You’re a smart monkey

        • Also you’re a fool if you don’t understand how regulations have killed coal, steel and manufacturing jobs in the US. Jobs that didn’t require a ton of skill, but paid well.

          • guerra

            Poor coal oil and steel. It’s almost like it’s about time? I mean come on. No one is getting manufacturing jobs back. This is not the decline of America, it’s the end of Capitalism as we know. Add more billions of humans and sea level rise and with a straight face, tell me humans need more jobs. How insane does that sound?

          • Heather Smith

            Didn’t a depletion of coal, steel and manufacturing jobs occur when coal was no longer economical to mine and manufacturing jobs were being shipped to areas when the wages were criminal.

  • Kevin Labelle

    I think it’s also important to note, for the other side of the argument, that slowly increasing the minimum wage, also increases the amount of money in circulation. If they, as you said with “smarter regulations,” adjusts the salary overtime pay threshold from the poverty line, to the at least $60,000/year threshold it would be at with inflation now, then for just about every two salary employees in the country, you would have one more. Sadly, because this hasn’t been adjusted, most salary employees work anywhere between a 50-70 hour week, allowing employers to mil the cow, and employ fewer full-time employees. Still, if the minimum wage gradually went-up to match inflation, more money would be in circulation, meaning consumers would spend more, and more income + goods would be taxed. According to Gallup, consumer spending is still on a gradual decline.

    There should be regulations for a company’s net worth to be required to pay their employees better, like Wal-Mart, or receive tax-credit for small-businesses still not in its very profitable stages. Those are problems that should be addressed accurately, so that the welfare of the employee does not cut into the employers chances at continued growth, but instead promises better growth. Meanwhile, the monopolies that we do have, at the moment, do not pay their employees more because they really don’t need to. Those companies shouldn’t need tax credits, and should be held accountable for excess profiting on their employees’ backs, especially when they need to depend on the government, on top of their wages, because they don’t make enough. Currently, it is a win/win for the executives in the company, and a lose/lose for everyone else.

    This can actually be done properly, if legislators were to implement “smart regulations,” as you said. Not many small-businesses that I know of, actually pay their employees the minimum wage. Small businesses grow on the premise of having reliable employees, and they treat them very well, most of the time. Still, they should get more credit for this, meanwhile the massive multi-billion dollar empires that do not do this, should be the ones paying for that credit. This article only discusses one side of the argument, but not the other, or even a mix of the two. Those are aspects that are very important to discuss, and smaller taxes are not the answer, we’ve been doing this for the past 30 years, to no avail. If you mean smaller taxes on the bottom 90% individual income revenue, then yes, as long as we increase the top 5%, or maybe even 10%’s capital gain taxes. That’s where our profit is leaving the country, and it needs to be brought back-up, much, much higher.

  • KaintGetRight

    This bullshit right-wing talking point and total LIE has been thoroughly discredited and debunked. http://bit.ly/1Vc4IZO

    • Kenna Thom

      Do you realize the article you’re quoting refers to a much more mild raise to $12 as opposed to the $15 this current article discusses? Those $3 make a huge difference and are the reason a $12 minimum is a better decision at this point in time.

    • Andrea Hinkley

      What do you mean explain yourself more

      • John Smith

        she can’t explain herself because she doesn’t have a single thought of her own. that’s why she just pastes a link that she just googled in 3 seconds instead of forming an argument. also, no US department is going to be critical of itself and its policies. that’s why those cherry picked “facts” are worthless to me. that’s like ben bernanke debunking “myths” about federal reserve. “myth #1 – the federal reserve had anything to do with inflation, recessions, great depression or 2007 collapse”

  • Anthony

    If minimum wage is raised to 15 I doubt my employer would raise my pay accordingly I might find myself looking at getting a minimum wage job instead of busting my ass for what would become near minimum wage

    • Horsethief666

      Very true. There are tons of warehouse jobs in my area that no body wants but they pay 15. Easy to get with decent money for no skill whatsoever. If minimum wage goes up no one will work there cuz it’s hard work. They’d have to raise the wages accordingly thus making their products cost alot more. The products are mostly food so that would suck. Now everyone is at the bottom again cuz food is a rip off.

      • tracy Smith

        Oh yeah,where are those warehouses at that’s paying $15 an hour that nobody want?

        • Horsethief666

          Oklahoma city. Associated wholesale grociers, hobby lobby, Pipe supply. They hire everyday cuz high turnover and need. There are tons more but you can look yourself rather than getting smart with me. Try moving away from liberal cities. That money goes a long way in OK too. Very long way.

          • tracy Smith

            So?

          • Horsethief666

            So? What the hell do you want from me? $15 hour jobs are out there. You can get much more too if you just try or get a good degree.

          • tracy Smith

            I don’t want sh*t from you except to stop responding to my comments

  • It’s a vicious circle. Raising the minimum wage to $15 will increase product costs and people will not pay that because they already feel like they are underpaid. The minimum wage needs to be increased to accommodate the increase of housing/rent cost, food, and water/power. I got a job as a web developer for a county making $16.50 p/hr and I could not afford to live on my own due to my current bill (debt to income) situation. After taxes, medical/dental and retirement, I made about $753 every two weeks. It was next to impossible to find anything to rent under $900.

    Increase salaries across the board to offset inflation, but I don’t feel kids that work in high school need that high of a salary -it’s their first job and they probably have no skills to barter with. Pay them the current minimum wage and all of the taxes they pay on their income can be put into a fund of some sort for college or a trade school to get a head start. If they choose to not use the taxes for a trade school or college, then they lose it. After all, when you are working while in high school and under 18, isn’t that taxation without representation?

    • Who is going to higher a high school kid for an entry level job if they can hire some one more mature with work experience. It is part of the reason kids who graduate college are so unprepared for the work force, they have never had a job in the real world and don’t know what to expect and have not developed basic skills needed to do the job. Thus making it tougher for them to be hired out of college.

  • tracy Smith

    Amerikkkan’s for them to always brag on how rich this flea trap capitalist crap hole is they always cry and find every excuse they can crap out about why they can’t afford to pay workers more money.Mean while other countries that Amerikkka claim to be so much richer then can pay their workers high minimum wages without all the excuses of how it will make people poorer or break the country.

    • Horsethief666

      Do some math and research. For example, if walmart’s took all the money from its ceo and distributed it amongst their employees then everyone would get an additional 8 dollars a year. That’s pennies a hour if that. They also only keep 3% of their profits. That’s money for the business. The owners take a fraction of that. Sam Walton started dirt poor and he did something about it. That’s what America should be. Not some charity for the below average human.

      • tracy Smith

        So you said that to say what?

        • Horsethief666

          Just saying alot of these 1% are not as rich as you think. Yes it’s ridiculous but taking them all out isn’t going to make us much better off. People need incentive and motivation and money provides that. And these big companies cannot afford these ridiculous wages for low skill workers. Most pay their educated workers great salaries though. Even Walmart.

          • keepITreal

            Oh, stop it, dude. One hundred 1% percenters probably have more than 50 million ‘regular’ people. Stop trying to imply in any way that these money vacuums posing as CEO’s don’t have it that well.

          • Horsethief666

            You seriously need to learn math. The average CEO pay is around 14 million a year. There’s no way that could ever be more than 50 million regular. Just multiply the minimum wage by 50 million people and you get close to a trillion dollars. That’s more than all the billionaires in America combined. Most people make much more than minimum wage anyway. Maybe if you could do this simple math you wouldn’t be on welfare. Taking from the rich will never help you. It will just give government more power and more money to waste.

          • keepITreal

            And you need to work on your reading and comprehension skills. I said 100 people out of the 1%’ers…i.e. 100 CEO’s. Take their ‘average’ of $14M per and it comes out to $1,400,000,000 (yes, that’s $1.4B).

            There’s no way that that 50 million people who live on minimum wage have more. Here’s the math, genius: 50,000,000 times $7.25 = $362,500.000 (that would be $362 million).

            I refuse to believe you’re this dumb. No way. Not possible.

          • Carter Fox

            Fucking. Served.

          • Pedro Gonzales

            Holy fuck you are actually retarded. You attempted to correct someone publicly on their math and you can’t even do it correctly. And then the idiot below comments and says “Fucking. Served.” Well both of you better get used to “serving” because that’s all you will do the rest of your pointless fucking lives. No wonder you’re flipping burgers at minimum wage. You don’t possess the basic math skills to get that promotion to work the cash register. You are the WORST. MATHMETICIAN. EVER. Sorry the word mathmetician felt insulting to actual mathmeticians. Here’s how the math actually adds up:

            14M annual salary x 100 = 1.4B. Congrats Pythagoras, you nailed the 100 CEO’s combined annual earnings with your free Obamaphone calculator app.

            Now how about your math on the combined annual earnings of the 50M minimum wage workers:

            7.25 HOURLY RATE x 40 HOURS PER WEEK x 52 WEEKS PER YEAR = 15,080 PER PERSON. Now multiply THAT number by 50M low wage workers. Drum roll…………..
            754,000,000,000. Yes that’s $754B. So nearly a trillion as Horsethief pointed out.

            I refuse to believe you’re this dumb. No way. Not possible.

      • Math

        Walmart profits alone would pay each of their 2.1 million workers ~$10,000 more per year or $5/hour more.

        ~1/3 of U.S. society makes less than 2x poverty level & ~50% make less than a “living wage.”

        That is ~100 million working people you call “below average human.” The problem is bigger than you realize.

  • Bah Humbug

    Using this same logic the author would believe that making the min wage lower would help people. Odd that nobody making real money wants to take a pay cut, as using this logic if all people making over even $100 k a year took a pay cut that our dollar would be worth more and everyone would benefit, instead believes that would be Marxist and that continuing to make the richer richer and the poor poorer makes the country economically stronger. Especially when we can look at the economic past of the US and see that when people are paid a fair wage across the board the whole country does better and not just economically.

    • keepITreal

      Those making a shitload of money with monstrous profits don’t want to take ‘pay cuts’. There are people with money that couldn’t spend in 100 lifetimes. It’s sickening that they feed us this bullshit about what making $15 an hour would do to the job market. Why does Bill Gates need to make a $1M an hour (or whatever ridiculous number it comes out to for him)?? Seriously.

      There’s more than enough money to go around. It’s just isn’t distributed well enough. Everyone knows this, but they prefer to feed us this BS.

      • Why do you get to dictate how much Bill Gates is allowed to make? He invested his own time and money to build his businesses. The market should dictate your value in the work force, based on the number of jobs available vs the people applying. Why do you think computer techs started out making $50 an hour instead of $10? It is because they were in big demand and there were more jobs than people who could do them.

        When you force a business to pay $15 an hour for a job worth $10 an hour, one of 2 things is going to happen, either there are going to be fewer jobs available at that company or the cost of their goods or services is going to go up. Which means in time that $15 will be worth the same as $10 due to inflation.

        Who gets to decide how much is enough, and what is fair distribution? Why do you think you have the right to take things from people and give it to others? This type of BS group think is exactly why this country was set up the way it is by our forefathers. They knew they had to protect an individuals rights and freedoms from the collective.

      • david

        Why should we care on what Bill Gates does with his money? It’s his money, and he’s earned every penny of it for advancing the way we live. He worked hard to get to where he is and no one can deny it. Do I think he earns too much for one’s living? Yes. But that doesn’t mean I or anyone should take any of his money away and redistribute it.
        Personally, I think of the redistribution of wealth as this. Imagine that you are a high school student enrolled in a Math/Physics/Literature/etc class. Lets say that there is an upcoming test and you decide to study all weekend, to pull all nighters, and to study diligently everyday until the test. Then there’s Person B who decides to put in the bare minimum in studying and decides to cram last minute and basically not give a damn about the test. You get 100% on the test and Person B gets a 50% on the test. Would you be willing to give up a percentage of your test, your hard work, your time put into studying to someone who doesn’t deserve it? I know that I wouldn’t.
        Sure there would be a flaw in this argument stating that this metaphor between a high school student and Bill Gates would serve to be insufficient since Bill Gates earns more than one’s average living. Then, hypothetically, let’s say that you earned a 150% on the test. Would you still give up some of your percentage to Person B? Some would agree; however, what would Person B think of this handout/free pass? Person B would thus be more dependent on you who earned that 150% through hard work and dedication. So, when the next test comes around, what’s going to motivate Person B to study and work when Person B knows that a small percentage is going to be given to him? While you put hours and hours into your studying and preparation, Person B fools around and does the bare minimum knowing that something will be given to him.
        Now, I don’t think Bill Gates did the bare minimum to get to where he is today. He put in tons of hours building Microsoft and his other business around him, and that’s why he’s become so wealthy. Quite frankly, he deserves it. You get what you put in.

  • SaniK

    I’m a semi skilled worker and make minimum, so for me its a 5$ raise. In the hotel industry they all pay you very little unless you move into upper management which is difficult. I think they should decreases minimum wage and give it to semi skilled workers who are out of college or have work experience but can’t find a skilled job in this economy. What do you think?

    • I don’t think the government should be setting wages and let the market do its job. Artificially setting the value has larger implications besides just your earnings. It also effects the cost of goods and services, as well as the ability for small businesses to succeed which in turns effects the number of jobs available.

  • Mr-Ed

    Experience elsewhere in the world indicates that this article is complete balderdash and piffle.
    Raise the minimum wage and reduce government subsidies of business (via benefits).

  • David N

    You’ve presented an argument for why you might expect minimum wage to affect businesses and workers, but with a headline like this, I expected to see some actual facts. We have many decades of experience with increasing the minimum wage, across hundreds of jurisdictions of all shapes and sizes. Surely, at this point, we have enough data points to say with some degree of confidence what the effects of a minimum wage increase will be? All of the articles I can find on the impacts of minimum wage increases that look at real data seem to come to the opposite conclusions. How do you explain that?

  • keepITreal

    Bull!! We pay athletes and entertainers millions individually, and BILLIONS collectively. We pay politicians MILLIONS, yet the average person can’t make $15 an hour??? Complete hogwash.

    The money is there. The problem is the lack of proper distribution.

    • Horsethief666

      The average person doesn’t make minum wage though. This only helps those at the very bottom and it really hurts those who are just above it. I make 15 an hour. If minimum wage went to 15 then all of a sudden my climb up the ladder and skills acquired are now the same as some highschool kid flipping burgers for the first time in his life. That’s unfair to me. People can get out of poverty. There is opportunity in this country.

      And I don’t even have my degree yet which will double that. It’s hard but you can succeed. If you expect minimum wage to support you then you’re a idiot. You can climb up.

      • keepITreal

        So, that high schooler will flip burgers for the rest of his/her for ‘the rest of their life’? Are you implying that they have no ambition? Maybe they’re going to school, too. Maybe they have to pay rent somewhere, because living in mom’s basement isn’t feasible. Have you, Mr. Horsethief, paid rent lately? It’s not cheap, even for a crappy two-bedroom apartment. Of course, they probably need to drive themselves to work, or rely some Uber driver. I haven’t yet indulged in the Uber process, so I don’t know exactly how it works. I surmise that it’s just a personalized taxi situation. Taxis aren’t cheap, so there’s no way Uber is.

        So, minimum wagers are paying for transportation, rent, utilities, and food. We haven’t even gotten to kids yet. Insurance, medical, dental, etc. We’re supposed to pay for all this, on 8 bucks an hour. $320 a week, BEFORE taxes. Oh, and this is if you’re working full time.

        Let’s just be generous and say the average low wage worker is making $1,400 a month. $8-900 a month in rent. Let’s say $700, just for fun. People in dense populations pay these kinds of rates, for dumps…if they’re lucky. Maybe you live in the country and only pay $250 a month for a trailer, but city folks are getting hosed.

        Move to cheaper places, you say? Sure. Find them. Let me know where they’re at. Oh, btw, don’t move me too far from my job, since I got to commute to work and all. Don’t want my travel expenses to flow over at the expense of saving 100 bucks on rent…plus, the cost of moving itself.

        Oh, yeah. 8 bucks an hour goes a long way, except, it doesn’t.

        Working on a degree myself, btw. Oh, that’s another expense…tuition fees. Trying to do better, but…it costs money to do better. :-/

        Should’ve taken being an athlete more seriously.

        • Horsethief666

          you didn’t understand a thing I said. You liberals need to learn to read and comprehend. I’ve paid rent and bills for 9 years and make hardly anything. But I’m almost there. Minimum wage can be beaten. ANd I never said a highschooler should flip burgers his whole life. You’re completely missing the point. Calm down and just read my damn post before you reply.

          • Carter Fox

            Echo box losers… KeepITreal speaks a bunch of logic and sense, and Horsethief replies calling him a ‘liberal’, like a tired ass joke, and he gets a like…

            So typical.

          • Stef

            It’s a one-trick-pony. Any time someone makes a valid point, just call them a “libtard” or any variation.

      • It isn’t just limited to burger flippers either. There needs to be entry level jobs that are affordable to employers. If I have to pay a non skilled person $15 an hour but can higher a skilled person for $20 an hour, why would I ever higher and train the lesser skilled person? Wouldn’t the entry level person be better off in the long run if he had to make $8 an hour for a year or 2 in order to learn a skill that will pay him $20 plus an hour down the road?

    • “proper distribution” is the dumbest thing I have heard in a while. We live in a free society where individuals have the right to the fruits of their products and services. It is completely evil to believe any one has the right to distribute their money.

      • Jenna

        Profit can still be made without forcing employees to earn so little that they cant afford a one bedroom apartment. What is evil is how greedy ceos profit so hugely off the backs of underpaid employees. How does the ceo deserve all that money when s/he didnt do all the work?

        • There is a difference between entry level positions and careers that can feed a family. Employers have ZERO obligation to pay ALL their employees a living wage and it is moronic to think they are.

          A CEO deserves what ever the market value is for that position, just like everyone else. Qualified CEOs are a lot more rare than a stock person or cashier. Any moron can do those jobs. If you don’t like the wage, don’t take the job.

          This whole mentality of entitlement and being owed something is a HUGE problem in this country.

          • Jay

            CEO’s are not worth what they make in this country, no European of Japanese company pays CEOs the compensation they make here. Many of them even loose the company money.

          • What makes you so special that you get to decide what is fair? People make what others are willing to pay them based on their value. No one gets to decide what another person should be paid. That is just moronic.

          • Jay

            Our crony capitalism is fair to anyone. The compensation provided to CEO’s isn’t fair to shareholders, and board members. Running companies into the ground isn’t fair to employees or shareholders especially not with the golden parachute options that they receive.

            Also the CEO’s and other executives belong to backhanded unions they call professional associations who artificially pump up CEO compensation across the board. While these same group of associates block working class people from organizing at ever opportunity.

            And yes reasonable people can determine whats fair and what’s not it’s called having morals, values and common sense .

          • Jay

            Our crony capitalism isn’t fair to anyone. The compensation provided to CEO’s isn’t fair to shareholders, and board members. CEO’s who run companies into the ground isn’t fair to employees, shareholders, or the country, especially not with the golden parachute options that they receive.

            CEO’s and other executives belong to backhanded unions they call professional associations who artificially pump up CEO compensation across the board. It’s the classic you scratch my back and I’ll scratch your routine. Board members are often appointed by CEO’s so they have little incentive to protect the assets of the company from their benefactor. While these same group of associates block working class people from organizing at ever opportunity, they seem to feel they have every right to judge what is fair. Maybe they feel it’s their class privilege.

            And yes reasonable people can determine whats fair and what’s not, it’s called having morals, values and common sense . It’s the basis of our jury system after all.

          • Fair is the battle cry of liberals. The world isn’t fair and you can’t dictate YOUR view of fairness on me or anyone else.

            If you think limiting what people can earn to what you think is fair is moral, than you morals are messed up. What is not fair is people thinking they should be able to dictate how much other people make or how much a business is willing to pay some one to get them to work for them.

            What about actors and athletes, do you get to decide what is fair for them to earn, relative to owners of a business? An actor can make $20 million for one movie. I suppose that isn’t fair in your world. So what is fair, when their movie can bring in $1 billion world wide.

            Instead of being jealous or envious of what other people make, maybe you should focus your efforts on making yourself more valuable. You’re earning potential in the US is only limited by your skills or entrepreneurship.

          • Jay

            Really aren’t isn’t this arictle about determining what’s fair to pay unskilled workers aren’t you jealous and envious of of people you consider yourself better than? Aren’t you making assumptions that I’m a liberal? I consider myself to be a social conservative.

            I’m talking about a nation wide looting operation here and you presume to bring in Hollywood as if its relavent to the subject. You need to put your country and the people in it before the narrow band of self proclaimed oligarchs than presume to run this place.

          • Stef

            I have a medical license and restart people’s hearts for a living and I’m living paycheck to paycheck in a 1 bedroom apartment. So being “valuable” has nothing to do with it.

          • Goldberg

            The minimum wage may assist you then! Is that an entry-level position? Take a course in budgeting.

          • Stef

            You think paramedicine is entry-level? LOL

          • Goldberg

            Reality says they are worth what they are being paid…otherwise they’d be canned. The only people that should worry about excessive senior executive pay are that company’s shareholders, no one else.

          • Jay

            Anyone with a retirement plan or a stock portfolio then.

        • Karmen Prince

          Yep, welcome to the real world. We are all experiencing the same thing. And those CEO’s Started at the bottom just like you did. Went to school, put in the hours and paid school det. They make millions due to sacrifice. Uber is half the price as a taxi and no car payment. its allot cheeper. Its hard making it in the world. Average rent here is 2000.00 for a two bedroom apartment with no bells and whistles. I feel the pain.

          • Stef

            The issue with CEOs is that, yes, they started at the bottom just like anyone else, but then suddenly take a 350% pay increase for absolutely no reason at all. And since they’re the CEO, they’re the ones who decide their pay. And when the company starts losing profits, the CEO doesn’t think, “Hmmm, I should take a pay cut.” No, it’s, “Hmmmm, everyone else should take a pay cut. Or get laid off.” People are literally struggling to put food on the table and here’s some CEO giving himself another $20,000 bonus. Sacrifice, my ass.

      • maxblockm

        Everyone has the right to distribute their own money as they see fit. I believe you meant “It is completely evil for any one to believe they have the right to distribute someone else’s money.”

    • Daniel Campos

      If left to society, and not to politicians and bureaucrats, money will go to those who produce more *value* to society. It is merely Say’s Law, really. You have to give something to society to have a claim on things on this same society. People don’t get rich by merely working, no matter how physically hard that work may be, but by how much and how many people their work satisfy.

    • James

      A businessman offers you a product, in which you may voluntarily pay for. A politician rips money out of your paychecks without your consent. To an adult it should be clear which you’d rather have.

    • maxblockm

      Yes indeed, lack of proper distribution! Everyone should stop distributing their money at the ballgames and on tv/concerts, and distribute it differently!

    • Goldberg

      Minimum wage regulation is mandatory, while all your other examples are voluntary!
      Apples to Oranges comparison.

    • Dana Dawson

      Go tell that to your local mom& pop grocery store or restaurant….or do you eat at Mcdonalds and shop at Walmart?

  • Ranger One B5

    Not raising or flat out not having a minimum wage is not just conservative bs to keep poor people poor. Technically forcing a minimum wage interferes in the free market by taking negotiating power that employees would otherwise have. If you are having trouble getting hired with your skill set you can always offer to work for less. Not 100% true if there is a minimum wage.

    In theory wages would only go so low in the absence of interference because demand for unskilled labor in many fields would force employers to offer competitive wages.

    We aren’t a third world country and we have a robust consumer economy so there is enough money in the system to where we wouldn’t see sweat shop wages.

    Some peoples wages may seem insane but people get paid what a corporation of people decide they are worth to the group at large. There are almost certainly cases where anti-competitive corporate collusion is used to artificially under pay certain skill sets to inflate profits. These are situations where the government should step in and try to reignite competition.

    Melding in the natural flow of a free market by applying arbitrary caps and rules across broad sectors is a dicey game. Giving everyone more money does not change supply and demand and may actually alter the cost of living.

    I am not saying I know enough to recommend one course of action over another but it is easy enough to recognize some of the real consequences of having a minimum wage, especially a relatively high one.

  • wasup23

    If you feel like you “aren’t being paid enough” QUIT YOUR DAMN JOB AND WORK SOMEWHERE ELSE! Go somewhere else! You aren’t in any way or by any means FORCED to work there. Ask for a raise if you really think you are “Worth it.” If you aren’t then the cold hard truth of life will let you know. If you want to increase your income, increase your asset worth. If you can work twice as much as someone, you are worth twice as much. If you are lazy and slack off and feel entitled to your hourly wage because you simply are just there, then don’t be surprised that you don’t get paid more. If you cannot economically get paid more for the job that you are in because people will do it cheaper, do something else. Why should you get paid the 15 that I went to school for years and worked my ass off sacrificing everything I had to move up to. If you are capable, then do it. Stop being lazy.

  • George B.

    I suggest we cut government wasteful spending at all levels, federal, state, county and city, which is in the billions, then put a cap on all elected and appointed government employees salary packages, renegotiate all government empleyee contracts to reduce the excessive retirement obligations payments, then slowly start phasing out the current welfare system, and then we can cut taxes to all workes thus resulting on an increase in inome for everyone.

  • disqus_KpRcmaiSos

    This article is bs
    https://www.dol.gov/featured/m
    “Across the country, the world’s most successful fast food chain has started replacing people with robots—automated
    screens—to “give customers more options as they order.” Undoubtedly,
    these
    electronic menus may actually provide more options—but they certainly
    present the franchise with a slightly cheaper bill.”
    This^^^will happen
    whether the minimum wage increases or not.

  • Karmen Prince

    What? No freakin way. Minimum wage pushing is from workers in fast-food, retail, etc and 15.00 an hour is way to high for a job meant to me a stepping stone and not a job to retire at. Work had and move up the later like the rest of had to do for 20 years. Kids now days want too much for no effort. Im a skilled worker 20years in banking making 19.00 an hour. the pay is terrible for living in southern California.. So, teenagers working their very first job at Taco Bell will be making 4.00 less than me? Disgrace.

  • Kardes21

    I’m very much against raising the minimum wage, and I struggled for a long time working at minimum wage as a teenager. There are other problems not mentioned here. The economic advantages are short term as inflation will catch up and the same problems will persist. If they don’t, it’s because companies have moved offshore, hired robots, and found ways to remove locals from the equation. Also, it incentivizes people to stay at low level jobs and to not specialise, so you have a less skilled workforce in the long term. For lack of space, and time, I won’t start listing alternatives, but there are a lot of them.

  • Tamiep

    Lies.

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  • Libster

    Unfortunately, the current minimum wage is not a LIVING wage – people cannot live on it: they don’t earn enough to put a roof over their heads or food on the table. If the top execs in most of these companies that underpay their employees were willing to cut their million+ salaries, then they COULD afford to pay a living wage without eliminating jobs. If we really want to employ Christian values into the workplace, we should tie top pay grades to their lowest pay grades, which some companies do: Ben & Jerry’s, for example, had a policy where their top employee could make no more than 7X what their lowest paid employees made.

  • Anthony Back

    Even though I agree with raising minimum wage. This will undoubtedly create a increased price with all the tradesman. Like plumbers, framers, roofers, and labor forces that do home improvements and other jobs like landscaping and general labor. I hear all kinds of talk on many other pro’s and con’s about raising minimum wage but this seem to be not discussed. Which most of these jobs besides the boss and foreman type positions are paid just above minimum wage. Usually around 10 to 15 dollars an hour for grueling hard work with long hours. This will definitely have a huge impact on these types of jobs. You will have a very hard time trying to find someone to do your roof for $12 an hour when you can make more than that to be a greeter at walmart or cashier at McDonald’s. Even though I Agree! Tradesman with these type of jobs will have to be paid accordingly. Otherwise there is just no way a person choose to abuse their bodies on strenuous labor for either less or equal pay than the much much less labor intensive work. I hope it gets raised though, better for all worker’s, but look at everything it will effect especially the jobs where the minimum wage would equal to jobs being performed at the that cost . I’m sure alot of people will be shocked to see what important job’s and pay scale with years of traing will immediately have to be raised along with raising minimum wage .

  • crz6662

    Hung drywall for $7hr., no benefits, Sold tires for $6hr. +commission, served in the military for 6yrs and made less than $20,000yr although with benefits. Don’t tell me some un-ambitious person flipping burgers for a lifetime career deserves $15 an hour. Get off your ass , learn a skill or go to school and work your way up like a normal f ing person. Dig your own ass out and stop looking for handouts. McDonalds is not supposed to be a career. There are many other “skilled” workers not making $15 an hour. Why should the unskilled?

  • Haley Lattomus

    Minimum wage is NOT $9/hour, that’s the problem!! 75 cents makes a difference

  • Original6

    Minimum wage was not designed for someone to make a living wage from it. If you wish to upgrade you must increase your skills. Unfortunately increases of minimum wage will result in more student unemployment and hurt the small businessman who already is financially stressed

  • Ronnie Wrenchbiscuit

    This article is typical capitalist propaganda. The truth is, a company like McDonalds can afford to pay their workers $30.00 an hour! But if they do so the people at the top of the pyramid may only be able to afford one private jet, one full size in-ground pool, one high-priced prostitute a week, one Lexus, and only three $500.00 suits! That’s right folks! It’s called American Greed. In order for capitalism to work a poor underclass must be maintained.

    Common sense tells us that if everyone were rich then no one would be rich, because there would be no power or leverage with money and wealth . This is why the greedy do what they do, so they can remain on the top. The only solution is the “cold turkey solution”. The working class must stand in solidarity and boycott all major corporations. In fact, the workers must outlaw these major corporations themselves if corrupt congressmen and women are unwilling to do so. This will take planning, commitment and great sacrifice. But this is the only way. Otherwise, future generations will continue to be wage slaves. I have coined the term “Slave State of the Second Order” to define the period in the United States that followed the antebellum, and that has continued unto the present.

  • Brandon Wade

    The real issue has never been the minimum wage. An increase in the minimum wage will be quickly devoured by inflation and have no effect on income inequality. On the other hand, legislation regulating how much a company’s highest paid employee can make in relation to it’s lowest would eliminate income inequality. Imagine a world where the CEO can’t make more than 3 times the income of the janitor…It would also unite the management with the employees in the fight to keep corporations accountable.

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