The minimum wage hike has driven the wages of teen employees down to $0.00.

[Revmitchell]

Yesterday's September labor market report was lousy by any measure, with 263,000 lost jobs and the jobless rate climbing to 9.8%. But for one group of Americans it was especially awful: the least skilled, especially young workers. Washington will deny the reality, and the media won't make the connection, but one reason for these job losses is the rising minimum wage.

Earlier this year, economist David Neumark of the University of California, Irvine, wrote on these pages that the 70-cent-an-hour increase in the minimum wage would cost some 300,000 jobs. Sure enough, the mandated increase to $7.25 took effect in July, and right on cue the August and September jobless numbers confirm the rapid disappearance of jobs for teenagers.


The September teen unemployment rate hit 25.9%, the highest rate since World War II and up from 23.8% in July. Some 330,000 teen jobs have vanished in two months. Hardest hit of all: black male teens, whose unemployment rate shot up to a catastrophic 50.4%. It was merely a terrible 39.2% in July.

http://online.wsj.com/article/SB100...74402820278669840.html?mod=wsj_share_facebook

 

[Deacon]

...he did say he was the candidate of change.

Look for more in the future.

Rob

 

[KenH]

Anyone who understands economics knows about this impact of the minimum wage.

 

[Salty]

Anyone who understands economics knows about this impact of the minimum wage.

and every time the minimum wage goes up, more people only make minimum wage

 

[donnA]

and every time the minimum wage goes up, more people only make minimum wage

fewer jobs, everything costs more, get less for the money, service still lousy as usual.

 

[Twizzler]

and every time the minimum wage goes up, more people only make minimum wage

I love this quote, SCB. I'm going to steal it for my Facebook status. Truer words were never spoken.

 

[Trotter]

Thanks to this increase many jobs now being ofered have been cut back to part time instead of full time. Why? Because employers can't afford all the extra payroll.

 

[just-want-peace]

But, as usual, the "overseers" of our well-being (HA!) are so lofty (?????) minded that they will continue to "kill us with their good intentions". (This is the optimistic view - otherwise it's intentional---- your choice)

 

[Jim1999]

That's all you pay on minimum wage; $7.50 per hour?? How can anyone afford to even go to work at that low rate?

Cheers,

Jim

 

[donnA]

If minnium wage were any higher we couldn't afford to live.

 

[Salty]

That's all you pay on minimum wage; $7.50 per hour?? How can anyone afford to even go to work at that low rate?

Jim

First, minimum wage is normally meant for entry level positions with no experience - and as noted by the forum title - it is for teenagers - it is not necessarily meant for a "living wage"

Second - many jobs for entry level are not worth minimum wage.

Third, keep in mind that in Washington DC $7.50 may buy you one hamburger, but in Tim-buck-tu, $7.50 will buy an entire meal.
Another words , DC has no business making a minimum wage. If any govt level has a minimum wage, it should be at the county level.

Salty

 

[Revmitchell]

Minimum wage is not in a vacume. Either the employer has to pay out less hours or charge more for his products and services. If the clientele are not will to pay more than that leaves on a single option.

 

[Nonsequitur]

That's all you pay on minimum wage; $7.50 per hour?? How can anyone afford to even go to work at that low rate?

Cheers,

Jim

This is a PERFECT example of you not knowing how the American economy works.

Canada's great. My parents go through there all the time on their way to Alaska, and have a great time.
And yet, they still don't make negative comments about Canada like you do about America.
Guess it's because they don't talk about things they don't know about. Like you are doing about how the American economy works.

 

[Spear]

Minimal wage is a necessity, and i guess that by increasing the income, they intend to keep the " low paid people " in the idea as as their income increased, thay can consume more, and buy goods, to help maintain the economical activity.

That's my idea about the fact of raising the minimal wage in times of crisis.

 

[Revmitchell]

Minimal wage is a necessity, and i guess that by increasing the income, they intend to keep the " low paid people " in the idea as as their income increased, thay can consume more, and buy goods, to help maintain the economical activity.

That's my idea about the fact of raising the minimal wage in times of crisis.

It backfires as the employers will decrease hours and hire less. As is evidenced by the current conditions. The assumption that if employers are forced to pay more they will then also maintain the same work hours and employee level is a bad one.

 

[Spear]

It backfires as the employers will decrease hours and hire less. As is evidenced by the current conditions. The assumption that if employers are forced to pay more they will then also maintain the same work hours and employee level is a bad one.

I disagree Revmitchell, employers are not philanthrops and shouldn't, at least not in my way of thinking. With or without a minimum wage, why would you pay someone 8 hours a day if you only need 5 ?

If you are working in a factory, and you need 8 guys 8 hours a day to produce 1 engine per day, and your activity is correct, you can't reduce their working time, or you won't be able to produce the engine, or will have to employ an additional guy, wich would lead nowhere in terms of money and salary.

 

[Johnv]

That's all you pay on minimum wage; $7.50 per hour?? How can anyone afford to even go to work at that low rate?

The minimum wage is not intended to be a living wage. It's intended to be the minimum amount that an employeer must pay person for hourly work.

I dont' have a particular problem with an established minimum wage, but I have problems with the way it is administered. First, too many people think it should be a "living" wage, which is ridiculus. Second, I have a problem with the fact that the minimum wage is not tied to the rate of inflation. Rather, it is static until changed by statute. This makes every review of it a political and partisan issue. If it is tied to the rate of inflation, then it would adjust regularly without the need for legislative review.

 

[Revmitchell]

I disagree Revmitchell, employers are not philanthrops and shouldn't, at least not in my way of thinking. With or without a minimum wage, why would you pay someone 8 hours a day if you only need 5 ?

Don't know where this came from or why.

If you are working in a factory, and you need 8 guys 8 hours a day to produce 1 engine per day, and your activity is correct, you can't reduce their working time, or you won't be able to produce the engine, or will have to employ an additional guy, wich would lead nowhere in terms of money and salary.

Sure they double the load on other employees and or do without. However, factory jobs in the US do not pay minimum wage. But in the end it matters not what you disagree with. This is not a matter of personal opinion. It is fact.

 

[Spear]

Don't know where this came from or why.

That's when i read " It backfires as the employers will decrease hours and hire less. " that i understood you were meaning employers would reduce the number of hours done by their employees to compensate the raise of the salary.

Sure they double the load on other employees and or do without.

They can't double the load on other employees. Raising significantly the load in time means more people get sick, and i guess there is a limitation of the number a hours an employee is obliged to make per week (by the way, how many can your boss oblige you to do a week ?).

 

[Revmitchell]

That's when i read " It backfires as the employers will decrease hours and hire less. " that i understood you were meaning employers would reduce the number of hours done by their employees to compensate the raise of the salary.



They can't double the load on other employees. Raising significantly the load in time means more people get sick, and i guess there is a limitation of the number a hours an employee is obliged to make per week (by the way, how many can your boss oblige you to do a week ?).

You just do not know what you are talking about.