The federal minimum wage increases to $7.25 today. Many champion minimum wage increases a a way to help the poor. Unfortunately, some get helped while others may lose their job. In the current economic situation, companies are unlikely to raise prices to cover this increase, so they will have to cut costs instead which probably means layoffs. Here is true example of how this worked for Neal Bortz when he was in high school.
"When I was in high school I got a job bagging groceries at the A&P on 9th Ave. in Pensacola, Florida. I was being paid the minimum wage. After a few months on the job the minimum wage went up by 25 cents. The manager of the store fired me. He said that the increase in the minimum wage increased his bag boy budget over the limit, and since I was the last hired I would be the one who had to go."
Friday, July 24, 2009
Minimum Wage Increases Today
Posted by CRCHAIR at 8:52 AM
Labels: minimumwage
Subscribe to:
Post Comments (Atom)
1 comment:
My grandfather owned a diner. He used to pay a couple of kids like 25 cents to sweep up the parking lot (this would have been in the 50's). It was a job that wasn't required, but was nice to have done. He was able to pay the kids something for the job, and they had a little extra money.
When the minimum wage requirement came in, he couldn't hire them because the job wasn't worth paying them that much. So he didn't get a swept parking lot (again, not really needed, but nice to have) and the kids didn't get to make any money.
I have no problem with ensuring that people get paid just compensation, but I am not sure the minimum wage is the way to to it.
Post a Comment