obama to change minimum wage to $9.50 before 2011

obama to change minimum wage to $9.50 before 2011

www.whitehouse.gov

Increase the Minimum Wage: President Obama will raise the minimum wage to $9.50 an hour by 2011 and index it to inflation so full-time workers can earn a living wage that allows them to raise their families and pay for basic needs such as food, transportation, and housing -- things so many people take for granted.

(visit the link for the full news article)

Straight off the whitehouse website...its under the poverty section.

I gotta say thats pretty impressive but the value of the dollar being a sham now doesnt give me that much hope...given the economic crisis as well- I just don't know. Had heard about this awhile back but can confirm it. I suggest you all visit the site as there are alot of changes =)

*cough*no bush*cough*

www.whitehouse.gov
(visit the link for the full news article)

Raising minimum wage doesn't help the poor. It raises the operating costs for employers which in turn raises the price of the goods they are offering and forces them to run with a smaller crew. This equates to less jobs and higher prices. How does this help the poor? Higher minimum wage leads to a higher cost of living, its that simple. Look at some of the most expensive cities to live in, they have some of the highest minimum wages (San Fransisco for example).

Well that will most certainly put all those small business (that everyone screams about disappearing) out of business.

Everyone better start loving Walmart.

reply to post by greeneyedleo


So, what do you propose as a counter policy that will actually help the bottom line? You will be amazed at how even the big corporations pay minimum wage.

What this equates to is a $14.00 hamburger at mcdonalds, a $9.00 frostey at wendey's and a $7.50 taco at taco bell. This is crazy! plain and simple and the people who support this are blind to see what will happen, imagine a night out to dinner at say applebee's ( family of four) avrage cost at present, $40.00 including tip, cost after raising MW to the above mentioned level, about $100.00 whithout the tip!

You know, I enjoy working at Wal-Mart thank you. I would not mind something more fulfilling as a permanent career, but I dont really plan on being here forever anyways. I am more irritated with uneducated clientele than the management to be honest with you. I get to see many of my friends and relatives throughout the week from the area. And I meet so many new people.

You probably should not work in a floor position though if you are not a people person. then all youll do is complain all day about how people are not as good as you, well thats the impression I get from some of my co-workers anyways.

The cost of energy has already gone down and yet the price of goods has not. The only reason is because noone wants to explain to the shareholders why dividends have gone down even if we are still profiting I assume.

Originally posted by DYepes
You know, I enjoy working at Wal-Mart thank you. I would not mind something more fulfilling as a permanent career, but I dont really plan on being here forever anyways. I am more irritated with uneducated clientele than the management to be honest with you. I get to see many of my friends and relatives throughout the week from the area. And I meet so many new people.

You probably should not work in a floor position though if you are not a people person. then all youll do is complain all day about how people are not as good as you, well thats the impression I get from some of my co-workers anyways.

The cost of energy has already gone down and yet the price of goods has not. The only reason is because noone wants to explain to the shareholders why dividends have gone down even if we are still profiting I assume.

Not an attack but what does this have to do with the increase of minimum wage?

Originally posted by greeneyedleo
Well that will most certainly put all those small business (that everyone screams about disappearing) out of business.

Everyone better start loving Walmart.

Wallmart would have to raise their prices as as well, so I don't see any connection here in terms of saving money.

Minimum wage has been rising for decades. Obama's just going to do it 2 decades sooner than it would take.

January 1980 $3.10
January 1981 $3.35
April 1990 $3.80
April 1991 $4.25
October 1996 $4.75
September 1997 $5.15
July 24, 2007 $5.85
usgovinfo.about.com...

[edit on 1/21/2009 by AceOfAces]

reply to post by alyosha1981


Wal-Mart could hold out longer on raising prices while the small business owners would suffer having to pay the higher wages, forcing them to raise their prices a lot sooner, which in turn would drive customers away to the large scale companies putting the small guy out of business.

Originally posted by rightuos
reply to post by alyosha1981

 

Wal-Mart could hold out longer on raising prices while the small business owners would suffer having to pay the higher wages, forcing them to raise their prices a lot sooner, which in turn would drive customers away to the large scale companies putting the small guy out of business.

Some of the companies that wallmart solicits could be considerd "small businesses" in terms of size and production. raising the minimun wage rate that fast will adversley effect Wallmart's prices as well ( raise them) almost immediatley.Consider the number of Wallmart employees.

[edit on 21-1-2009 by alyosha1981]

I think this is risky but I support the idea. If everyone had money in their pockets people would spend more. I think that Obama realizes this and Obama is trying to stimulate the economy-- I think this will help in the long run if inflation doesn't rise an equal amount with the raise in minimum wage.

Originally posted by Frankidealist35
I think this is risky but I support the idea. If everyone had money in their pockets people would spend more. I think that Obama realizes this and Obama is trying to stimulate the economy-- I think this will help in the long run if inflation doesn't rise an equal amount with the raise in minimum wage.

If the minimum wage ammount goes up that drasticly, everybody will not have money in their poskets because the price of everything will go up, don't you see? start at the bottom and rationally work your way up what happens? Prices go up above wages and the economy suffers, also add supply and demand in there too.

[edit on 21-1-2009 by alyosha1981]

I worked at Wal-Mart for some time and a majority of the people there already made an average 8.50 hr, so again I believe Wal-Mart would hold off for sometime, of course some prices would go up, mainly perishables, food, things made here in the US but only because those companies would be raising their cost of product as they take on the extra pay raise.

from 1980-2007 (27 years) it went up a whole 2.75

now he wants to go up 3.65 in 3 years? That doesn't sit well with me. There will be more small guys shutting their business down because of this.

reply to post by alyosha1981

Not really. Supply and demand isn't always about price-- sometimes if an asset is low priced it will not be high priced because there is low supply for it-- and alternatively-- in several cases-- an asset isn't necessarily low priced because of high supply for it. There are tons of markets where that theory just isn't true. So... there is little reason to assume that all prices will raise simultaneously because of people buying more... there are a lot of factors going on here. I don't fully understand it myself but just because people are buying more doesn't mean prices will go up!

"obama to change minimum wage to $9.50 before 2011"

This ain't going to do much when Hyperinflation kicks in and it costs a day's wage for a loaf of bread.

Just sayin'...

Originally posted by Frankidealist35
reply to post by alyosha1981

 

Not really. Supply and demand isn't always about price-- sometimes if an asset is low priced it will not be high priced because there is low supply for it-- and alternatively-- in several cases-- an asset isn't necessarily low priced because of high supply for it. There are tons of markets where that theory just isn't true. So... there is little reason to assume that all prices will raise simultaneously because of people buying more... there are a lot of factors going on here. I don't fully understand it myself but just because people are buying more doesn't mean prices will go up!

Look at what happened when the price of gas went up, and yes supply and demand does efect price, because as the demand goes up so does price, and if you give the millions and millions and millions of people who earn minimum wage a sudden increase, they will buy more(creating demand) while employers raise prices on goods ( to compensate for the increase in labor costs)

Originally posted by Exuberant1
"obama to change minimum wage to $9.50 before 2011"

This ain't going to do much when Hyperinflation kicks in and it costs a day's wage for a loaf of bread.

Just sayin'...

I doubt it will ever get that bad, that's a bit extreme is all I'm saying not to attack you or anything.

Why not produce another law, which prevents businesses from increasing their prices? Down with corporate America! Up with consumer surplus! Wasn't there a popular thread on ATS a few months ago about the USSA (United Socialist States of America)? Think we're getting there?

On a more serious note, I can only see the short run benefits of this. Does Obama intend to gradually reduce the minimum wage again a couple of years later?

[edit on 21-1-2009 by cognoscente]