Why the U.S. can afford to raise minimum wage

fat-cat-index-minimum-wage

The U.S. minimum wage has failed to keep up with inflation and productivity, and adjusted for inflation (which you always should do) is lower than it has been in the past.  So there is no good reason to fear that current proposals to increase minimum wage will result in higher unemployment.

The following link has good background information.

http://www.addictinginfo.org/2013/10/05/federal-minimum-wage-productivity/

realnominalminimumwageto2012

fig3_scenarios

chart-minimum-wages-feb-2011

One Response to “Why the U.S. can afford to raise minimum wage”

  1. Holden Says:

    I don’t care for the idea of government getting in the business meddling with wages (or prices for that matter), but I don’t see how pacing min wage with inflation would hurt anything.

    If anything, we’d at least return to a time when it was worth a kid’s time to work a weekend job. When I was part of the min. wage market (working retail in High School/College) I at least could afford gas and car insurance. Today those wages have risen very little while the cost of gasoline has more than tripled.

    It simply isn’t worth most anyone’s time to work a min. wage job at current rates, especially those who would primarily find themselves in these jobs (students).

    (((($7.25 * 8 hrs) * .75 for after tax pay) – $7 fast food lunch expense) – $4 gallon of gas to drive to/from work expense….) = $32.5 for a min wage worker’s entire day of work!!!

    Just stay home and play video games!

    Like

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