Federal Minimum Wage going up today

[Seeker]

Sorry, that was $6.55 last year.

[maat55]

It works the same as an tax increase because it basically is one. This administration will stop at no tax to get what it wants. The american economy is trying to push a ton of bricks while dragging another ton behind, between taxes, debt and entitlments, were screwed.

[tzsgti]

NO ONE CAN LIVE OFF minimum wage (read the book nickel and dime). That being said i think this will only make a difference in areas where people make minimum wage working 40 hours or more. In the NY/NJ/CT area anyone working for minimum wage is working a lot less then 40 hours. Generally the people making 7.25 are the PT people. I work in the Retail supermarket industry where most make minimum wage but they all have union contract raises so really the extra .10 would have come with in the next six months. Also here in NJ and NY minimum wage was 7.15 for quite some time so no big difference. I am sorry but at even 28 dollars a month extra for those states that were paying 6.55 is not going to all of a sudden make living off minimum wage easier.

[Seeker]

NO ONE CAN LIVE OFF minimum wage (read the book nickel and dime). That being said i think this will only make a difference in areas where people make minimum wage working 40 hours or more. In the NY/NJ/CT area anyone working for minimum wage is working a lot less then 40 hours. Generally the people making 7.25 are the PT people. I work in the Retail supermarket industry where most make minimum wage but they all have union contract raises so really the extra .10 would have come with in the next six months. Also here in NJ and NY minimum wage was 7.15 for quite some time so no big difference. I am sorry but at even 28 dollars a month extra for those states that were paying 6.55 is not going to all of a sudden make living off minimum wage easier.

That's $28/week if a 40 hour week.

The individual states within the US, have the option to exceed the minimum Federal requirements. California state laws have higher hourly minimum wages as well as other states with high COL.

It will yes affect student and lower paid people... but a minimum is required in order to prevent abuse on the part of employers.

Not many people are going to notice this, or will attribute rising prices to another factor.

Truthfully, how many of you knew that this 70 cent increase happened last year, and the year before ?

[Seeker]

Oh, and Maat -- "this administration" didn't do this.

President Bush and Congress instigated this several years before "this administration" took office and even before the current "economic crisis" came to light.

[Inkstain82]

I've read the book Nickel and Dimed, and she made some big mistakes, such as insisting on living in an urban area and (iirc) refusing to consider a roommate.

It is possible to live on minimum wage.

[GREENBACK]

It is possible to live on minimum wage.

It's possible, as I've done it quite a long time ago when it was much lower. The problem is that somehow it's become a "living wage" issue. This level of pay shouldn't be acceptable to the average worker who has a family or is just trying to succeed in life. It is that person's responsibilty to seek upward mobility whether it be from that job or another they're seeking while the MW job pays the bills. Remember when we use to actually have to work our way "up the ladder"; what's happening to that concept?

The majority of politicians(whichever side of the isle) who vote this nonsense into law have never experienced working for minimum wage or employing those who do, or even the dynamics involved in how this all works for employers and employees. They do; however, know how to count votes and that's how this stuff gets passed.

It's common knowledge among economists that most who make the minimum will spend it right away which gives the economy a nice temporary boost(maybe) but isn't real sustainable to long term growth of anything since inflation catches up to it everytime.

This raising the MW is like a dog chasing it's tail to me. We're going in circles and never catching that which we're chasing. The politicos are catching what they're after(votes). Americans, who pay no attention to this dynamic, keep voting these people in time after time.

The minimum wage shouldn't be treated as a locked in for life living wage. Somehow, it's being viewed that way. Those flipping burgers and sweeping floors(been there, done that) shouldn't expect to earn enough to live well on. Employers shouldn't be expected to pay them more than they're worth. Politicians with no experience in this area should butt out of this stuff.

[maat55]

Oh, and Maat -- "this administration" didn't do this.

President Bush and Congress instigated this several years before "this administration" took office and even before the current "economic crisis" came to light.

This administration is control now, it decides what influences are necessary and which are a detriment to todays economy. It chose to allow this increase(no surprise).

Will it be a detriment? We will see.

[disneysteve]

They can raise prices slightly and incrementally to the point that few notice

On thing the supermarkets are doing more and more, and we've discussed here, is shrinking package sizes but keeping the shelf price the same. I saw another example of this recently. I buy store brand cereal. A few weeks ago, they were out of the variety I wanted. A week later, it was back in stock. Sure enough, the price was the same but the package had changed from 14oz to 12oz.

[tzsgti]

On thing the supermarkets are doing more and more, and we've discussed here, is shrinking package sizes but keeping the shelf price the same. I saw another example of this recently. I buy store brand cereal. A few weeks ago, they were out of the variety I wanted. A week later, it was back in stock. Sure enough, the price was the same but the package had changed from 14oz to 12oz.

This is true but they are doing more then that. A report came out that people are choosing the supermarkets own brands vs the brand names saving alot of money. In example if you look at detirgent a brand name can cost $12 where you can get the store brand for about 8 dollars. Its boosting the supermarkets own brands profits but really killing procter and gamble

[tzsgti]

I've read the book Nickel and Dimed, and she made some big mistakes, such as insisting on living in an urban area and (iirc) refusing to consider a roommate.

It is possible to live on minimum wage.

Well there are homeless living as well

Living in complete poverty is not living IMO. Its not easy if possible at all IMO.

[Inkstain82]

Well there are homeless living as well

Living in complete poverty is not living IMO. Its not easy if possible at all IMO.

"Complete poverty" is a very moving standard. It is quite possible to live a simple, comfortable life on minimum wage that would be better than even the richest of society lived a century ago, and "poverty" by American standards puts you in the global elite in terms of standard of living.

All that said, I still have no problem with regular minimum wage increases. I'd like to see it indexed to Congressional pay.

[wnlbutterfly]

My husband made the comment to me the other day that poverty here isn't the same as poverty in most other countries.

Complete poverty would be homeless.

We lived on minimum wage back in the 80's when it was $3.35. We still had a roof over our heads (not living with family), we had food, TV, car. It wasn't easy and we certainly did without a lot of stuff that we now consider necessary (all "wants" I admit).

Usually minimum wage is the teen work force or the second income job. Not always of course, but usually.

The other aspect that isn't mentioned is that it also pushes up other wages. I know my mom that owns a company makes sure her employees get a certain amount ABOVE minimum, so when it gets bumped, she will feel the need to bump up her payroll as well, and yes, it just might mean hiring one less employee.

Yes, this was a Bush Admin thing, but Obama is talking about wanting to do another raise by 2011, just don't recall how much.

[geojen]

This administration is control now, it decides what influences are necessary and which are a detriment to todays economy. It chose to allow this increase(no surprise).

Will it be a detriment? We will see.

Obama can't just decide it doesn't want to enforce certain laws. That law was passed years ago by the congress and signed by Bush. He can't just say "Sorry, I don't feel like doing this law." That isn't how it works. If it were, what we would really have is a monarchy, not a president bound by checks and balances.

[GREENBACK]

From what I've seen, this admin. has been a little quiet about this being a great thing. Could it be because it wasn't their idea? I'll bet they trip over themselves to make noise when they themselves raise the minimum and I'm sure the proposal will be around election time.