Last night in a speech in El Paso, Hilary said she would raise the minimum wage to $9.50 an hour.
So much for being friendly to businesses. (Disregarding the issue of illegals for a moment...) If a business can hire a person for $6.00, then that job is worth $6.00. If an employee feels that he or she is worth more, then that employee should improve themselves so that they can be hired for a job that is worth more.
Hypothetically, if a business has 10 employees at minimum wage, they would get about a $4.00/hour bump (or $40.00/hour to the overhead cost of the business). Then the 5 people currently at $7.50/hour would get at least an extra two bucks, but that would make them minimum wage and not make 5 happy employees. So add that $20.00/hour bump to the business, and Hilary has now cost this company $60.00/hour just to stay in business. And who would that business pass their costs onto?
Right. You, me, and the guy now making $9.50 an hour who still can't afford the product because the cost of goods has (at bare minimum) gone up the cost of the labor.
Speaking of me, lets say that in my hypothetical situation, I make $11.00 an hour. I don't get a raise. But my expenses on EVERYTHING I BUY goes up. Has my life improved? I had improved myself to make double minimum wage, but the economy has just kicked my rear end. I am a loser in this scenario. My budget for groceries, clothes, home items, etc., goes all kittywumpus and now it may increase my debt (or at minimum, it kills my discretionary income). So now I don't have money for the food, the clothes, the ball games (stadium workers make minimum wages, too), the movies (ushers and concessionaires) which are now more expensive. Because less people will have money to pay for those items, business will suffer and either cause layoffs and go out of business. I think that is called a recession.
Do these politicians think before proposing dumb ideas? How about no minumum wage. If I am a businessman that wants to offer a job at $2.00/hour, and if I can't get any takers, I would have to increase it until I hit a level in which I get a taker. If that level is $4.25/hour, then that is what the free market dictates, and now I have a lower cost of doing business. My business with lower costs can sell its goods or services at a lower price, increasing my business and improving the economy.
Makes sense to me.