Friday, August 17, 2007

$7.25 > $5.15


in case you haven’t noticed, congress in all its wisdom increased the minimum wage from $5.15 to $7.25 over the next two years. the first increase raised the current minimum wage rate to $5.85. george miller, democrat – calif, and the bill’s author, gushed about those who will “benefit” from higher wages - "Today we finally release them from being frozen in time, stuck at that wage level when their gas prices are higher, their education prices are higher, when their medical costs are higher." it amazes me that he (and the others who passed this asinine increase) doesn't really get how economics works. who does he think is going to fund the increase? certainly the employers are not going to take a hit at the profit margin. instead, prices of goods and services will increase. here are two examples from my personal life. many sundays after church, my lovely and beautiful wife, my daughter, and i frequent ci ci’s pizza. we go so often that i know what to write the check for before we get there. two adult buffets and two drinks prior to congressional meddling ran about $12.00. the week after congressional jackassery, the cost increased to just over $13.00. in the second example, my daughter’s day care bill before was roughly $400.00 a month. now, it runs $460.00. democrats claim the minimum-wage increase will lift the income of 13 million workers . so – if such shifts in goods and services across the board affect my life-style, i can’t help but doubt how much the minimum wage increase will actually help those 13 million workers who will also face rising prices of goods and services.

2 comments:

Bezner said...

It's funny. When I was in high school I remember being excited about minimum wage going up. I thought, "Awesome! More money!"

When I heard about the most recent bill I immediately reached the same conclusion you did: It sounds good on paper, but it ends up biting you on the backside. Like you said, the CEO isn't going to take a paycut. Or the middle manager. Or the store manager. So prices have to go up to cover their margins.

laura g said...

*applause*

it kills me. there's not a chance that employers will take a hit at the profit margin - not a CHANCE. so the obvious result is an increase in the cost of goods and services for EVERYONE. why, WHY, are there so few people in this country who get that? raising minimum wage does not magically lift people from poverty. but i guess the elected have said it out loud for long enough that they believe it as truth.