“The White House says 15 million workers would benefit directly from a higher minimum wage, but many economists say that millions more would gain too after taking into account the ripple effect as the whole wage scale moves up.” http://www.npr.org/2013/02/13/171897858/obamas-call-for-higher-minimum-wage-could-have-ripple-effect
Now what could be wrong with that?
I am no economist but I do understand the 101’s of the science. If we raise the floor wage other wage scales would have to rise as well. But doesn’t that mean we have allowed inflation to rape our dollar?
From my point of view, we have. History does show that the value of the dollar drops with time and, thus, buys less but what type of inflation pushes college tuition to hundreds of thousands in a four year span and makes a college text book cost two hundred and twenty five dollars?
Of course printing money will not be the answer, because the inflation will now be in favor of the goods and services and not the availability of money. Then we’ll have more money than we have goods and services so that scarcity will cause the price of that text book to rise even more astronomically.
The President’s proposal to raise minimum wage at the Federal level is in keeping with the social responsibility he has promised. With higher minimum wage, then the health care pool of services will be more available for employees – though I am still hoping that he gives us the universal healthcare he had campaigned upon in 2007. If employers would be able to buy health care services for their employees, then we wouldn’t have to pay for the Medicaid coverage, many minimum wage employees, like those from Walmart, are forced to resort to.
The opponents to a wage hike feel that the increased cost of hiring would reduce the number of people hired. That could be easily off set if there is an increase in the number of jobs available.
So the wage increase should ride with the infrastructure repair plan that the President is still to get approved through Congress.