Tuesday, March 5, 2013

VIDEO: Obama's $9/Hour Minimum Wage

Economics Professor Robert P Murphy looks at the proposal.

1 comment:

  1. I would like to comment about the minimum wage.. Please those of you that do not believe in a minimum wage please do not spread misinformation about it Did you know that in states where their minimum wage laws mirror the federal minimum wage laws you can hire and pay anyone under the age of twenty 4.25 hour for the first ninety days that they are employed. Let me repeat that Did you know that in states where their minimum wage laws mirror the federal minimum wage laws you can pay anyone under the age of twenty 4.25 hour for their first ninety days that they are employed. Well now you know ok. Did you know that most states make Excemptions to their minimum for very small companies that have sales below a half a million dollars a year. These companies are not even required to pay the minimum wage. This would most likly be over half of all small businesses in other words over half of all the small businesses in the country are exempt from paying the minimum wage. Well now you know. I would suggest a simple solution to the minimum wage do not spread misinformation about it.wage issue. Instead of requiring a company to pay the starting minimum wage of 7.25 hour allow them to phase it in by simply starting a employee out at 6.00 hour 5.75 for anyone under eighteen and than increasing their pay by 25 cents a month until it reaches 7.25 hour. It will take five months to reach 7.25 hour by doing this it will give the employer a little bit of time before they are required to pay the full amount. In other words while the employee is learning the job and is not yet as productive as the more experenced employees they can be pay a lower rate of pay for up to five months. I would also make exceptions for seasonal workers that are employed only for 60 days or less they can be paid 6 dollars an hour for up to sixty days. 5.75 hour if their under eighteen. I believe that this is a very reasonable compromise between the employee and employer. One other thing their is overwhelming public support for the minimum wage. Illinois had a referendum on increasing the minimum wage on the ballot over 85% of the voters supported increasing the minimum wage.

    This argument about the minimum wage gets a little silly. How is it that a company or a employer thinks that they can pay whatever they want for labor. Minimum wage or no minimum wage. The price of labor unskilled or less skilled is really set by the market not the government or the employer. So the argument about the minumum wage makes little sense. The fact of the matter is if their was no minimum wage very few employees would be willing to work for five dollars an hour so in order to attract employees businesses would have to pay higher wages or they could not fill positions. Or their turnover would be so very high that they would be employing personal that would have absolutly no idea what their doing because they would only stay their a week or two or three. In other words it would cost them far more to pay the minimum than to pay more than minimum. The fact of the matter is anyone that works for a firm for a week or two or three is less than half as productive as someone with two or three years with a company doing the same thing. The fact of the matter is any business that attempts to pay wages which are far below the prevailing wages for the work being done will have astronomical turnover thats a fact thats a fact' thats a fact. Can't argue with that. I suggest a very simple solution to this problem and argument. Allow all businesses to phase in the current minimum wage over a five month period instead of requiring them to pay the full 7.25 an hour all at once. Example 6.00 dollars an hour to start and increase this amount by 0.25 cents every month until you reach the federal mimimum of 7.25 This would take five months.