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At present, all low paid workers have to claim taxpayer help to survive. After the raise, let's say (for the sake of argument) half the low paid workers lose their jobs. This half will continue to claim benefits. The other half though are not only off benefits and thereby saving taxpayer money, but are now paying taxes and contributing to the taxpayer pot. Not only that, but they'll have spare cash to spend and the only people to benefit from that are the businesses. Just think of how much businesses would flourish with all that spare cash being spent with them.
originally posted by: sdcigarpig
a reply to: doobydoll
Increasing pay is not a bad thing; however, this is not just one state, but just a city. And the entire country is going to watch and see what happens. There are many questions and problems that will come of this. And it will reflect in different areas.
The first area will be the unemployment rate. What impact and change to it that will occur? As I stated, many businesses will have tough decisions to make, and this could either make or break the city. What if it backfires, does the city have a backup plan?
What if businesses close up, could or would people be happy with say another Detroit Michigan, where businesses pack up and leave, because they refuse to pay their employees 15 an hour? Big and small businesses have some decisions that they are going to have to make, and with good reason.
I don't get all this 'who should get more' talk. At present, skilled workers are not struggling to live, are happy with their pay and say they are worth what they get and they deserve it. But they think low paid don't deserve to be paid enough to live on.
Who should get paid more, a person who went to college and is able to program a computer, or a janitor who just cleans the toilet? Do you think those who are currently working, do you think those with the skills are going to be so willing to accept that now someone who is unskilled makes the same rate as they do? Or do you think that they will start sending their resumes out to other companies and move away, further making things hard on the area?
Well, I guess they'll do what they gotta do. It's daft to close doors though, isn't less profit better than no profit? But hey-ho, those who stay will have less competition to enjoy the extra cash being spent with them.
And small business are going to have to make decisions that will also affect the area as well. To either raise the price of goods and services to cover the costs or close their doors.
There are no real answers, and thus this is why Seattle is going to be watched. People are going to watch to see how things go, and what happens. If it succeeds or fails, it is going to be highly politicized, and pointed to.
Personally I think that the city went too far, and that this is going to back fire, that the unemployment rate is going to go up, as many of the small businesses will either close their doors, or lay off employees to cover costs, as the owners are not going to want to pay that much. It means that there will be a changing dynamic in the city and some industries will simply raise the price for their goods and services to cover the costs of such. And employment will ultimately stagger for a bit, when this goes into effect. And that is if the law survives the law suits up to the Supreme Court, and the US Supreme Court decides in favor of this law.
I also believe, if it was a raising up to say 9 an hour, it would have been a lot better all around, as then it would have been more gradual and easier to adjust to.
Only time will tell and show.
originally posted by: sdcigarpig
a reply to: doobydoll
As I have stated, only time will tell.
Business, is not there to be charitable, and believe me it is not going to be the godsend as many people think that it will be. A bigger pay check, and these people will lose benefits, along with now having a large amount taken out of their pay every payday to pay for the nice benefits, such as federal tax, unemployment, medicare and medicade. And they will lose in the long run, all of the benefits that they have been getting. So yes they get a bigger paycheck, but when all of the different items are taken out, they may very well find that they are no better off, if not worse with that higher rate of pay.
Think about it, and start adding up what they lose in exchange for that bigger paycheck. Rent assistance, gone. Public health, gone. Food Stamps, gone. A majority of the public assistance will be gone and that will now have to be paid by the person, so you figured that they will have to take out all of that from their paycheck.
General numbers:
600 a week, about 2400 a month.
Average monthly cost for a family of three is still 4410 per month. If 2 people were working, it will give them just enough to cover all of the bills and still leave them with a short, every month.
So how is this giving the poor a leg up again?
originally posted by: doobydoll
But the reason their gov benefits stop is because they'll be earning enough to pay their own way in this life. If they're going to be worse off then obviously the increase isn't enough to live on, is it? Should they be asking for more? Isn't it better that these workers are able to pay these things themselves, instead of the taxpayer paying for it all?
~People have to start changing the way they think or we'll have poverty forever and things will never change. Instead of looking at the negatives and amplifying them, try looking at the positives. Let's look after ALL working people and demand that no working person should have to claim any sort of benefits, and make this the first step for change. Make it very clear to bosses that this is the new bottom line, let them deal with it and adjust (or not) from there.
Taxes are imperative to modern society and everyone who works should be earning enough pay tax. You can't have so many working people all taking out and paying nothing in. Bosses should ensure all their workers can fulfil required tax obligations. Businesses profit from citizens and society, and therefore should ensure that those citizens and that society is not worse off as a result of that business being there. Exploiting citizens and society, reaping profit from them, and contributing nothing in return, is what is going to backfire on them.
Benefits should only be claimed by those whom are either unable to work, or between jobs/unemployed.
Low paid workers don't want to claim benefits, they would prefer to be paying taxes. Everyone else would be happy that more people are paying taxes. Gov would be doubly happy at more taxes coming in AND less paid out in benefits.
The only ones who don't like it are, coincidentally, the very people who are directly profiting from working poverty.
For indeed we live in a world of fundamental abundance, a world where vast quantities of food, energy, and materials go to waste. Half the world starves while the other half wastes enough to feed the first half. In the Third World and our own ghettos, people lack food, shelter, and other basic necessities and cannot afford to buy them. Meanwhile, we pour vast resources into wars, plastic junk, and innumerable other products that do not serve human happiness. Obviously, poverty is not due to a lack of productive capacity. Nor is it due to a lack of willingness to help: many people would love to feed the poor, to restore nature, and do other meaningful work but cannot because there is no money in it. Money utterly fails to connect gifts and needs. Why?
Things we once never dreamed of paying for, we must pay for today. Pay for using what? Using money, of course—money that we struggle and sacrifice to obtain. If one thing is scarce, it is surely money. Most people I know live in constant low-level (sometimes high-level) anxiety for fear of not having enough of it. And as the anxiety of the wealthy confirms, no amount is ever “enough.”
I don't know about the USA but here in the UK subsidised rents are part and parcel of 'low income benefits'. So if workers in the USA still can't afford to pay rent then they obviously aren't being paid enough, they'll still have to claim 'housing benefits'. And who do you think pays this? The taxpayers yet again.
And there is one other small detail that I forgot to look at and it should be interesting, and that is low income housing, boy I guess those people if they are working, will have to find new places to live, as they will no longer qualify to live there or in rent controlled places.
If bosses can't afford to pay workers enough to pay their own way in life, then that business is unprofitable and should be closed down, because allowing them to continue operating is costing us a fortune in payments to their workers.
originally posted by: Phage
a reply to: doobydoll
If bosses can't afford to pay workers enough to pay their own way in life, then that business is unprofitable and should be closed down, because allowing them to continue operating is costing us a fortune in payments to their workers.
Ok. Shut down the business. Those jobs are gone.
Now what?
originally posted by: ldyserenity
I think that they should shut down all government assistance, point blank, except for those that can't work like the disabled.
originally posted by: ldyserenity
If they did that business would have to pay a living wage (and fraud and illegal immigration would end overnight) I guarantee that. No one would take "so called" minimum wage anymore and sure as hell wouldn't be able to get illegals to do it for less because they wouldn't have welfare. They'd either be paid fairly or leave America. I believe this is our only recourse.
I'm not against welfare, but I am against businesses using it as a reason to pay poorly, when they damn sure can afford to pay better! Also we'd see prices go rock bottom because government handouts has artificially propped the economy for so long.
However, before this is done we need to bring the manufacturing industry back, which is not an easy task.
originally posted by: Christian Voice
Here's my .35 cents (hyperinflated also)....
I went to college, then into the USAF, then to the phone company. I have extensive training in communications and IT and I am worth my pay however jobs like working the counter at McNasties are not worth more than $7 or $8 an hour.
originally posted by: sdcigarpig
a reply to: doobydoll
Have you ever owned or ran a business before? Do you know what all is require for such to take effect and work on, or what is considered profitable? Most of the time, a lot of the small businesses operate on a tight bottom line, and all profits are considered after all of the bills are paid. That means the electric, water, garbage, and the insurance, along with the fixtures. Then the products, and finally the labor. And of that there are the taxes. In most business’s labor is the biggest cost, and the most important. So any and all profit has to be considered after all of the bills are paid, and if business is slow, how much of a profit margin is there? May be not as much as what some would thing. Does it mean that the business is unsuccessful, no, it means that there is a tight bottom line.
originally posted by: Phage
a reply to: doobydoll
If bosses can't afford to pay workers enough to pay their own way in life, then that business is unprofitable and should be closed down, because allowing them to continue operating is costing us a fortune in payments to their workers.
Ok. Shut down the business. Those jobs are gone.
Now what?
originally posted by: MoonBlossom
I think many herein are missing an obvious truth:
Whether or not minimum wages increase anywhere, YOUR cost of living WILL continue to go UP and up and up - ad nauseum - until every tier except for the very elite will have difficulty making ends meet. That is the reality of wage slavery...the problem is, that because some folks think that things are ok NOW (and do not see themselves as wage slaves, even though they are), they are wearing rose-coloured glasses and forgetting that their future too is in jeopardy.
Nobody's wages are keeping pace with inflation (except for the 1%) and the bottom WILL fall out one day for most because this insanity cannot continue unabated. Now I will not profess to know all the answers to create the balance that is needed, but people really need to stop blaming the poor for increases in the cost of living that occur REGARDLESS of a minimum wage hike.