In response to:

A Minority View: Higher Minimum Wage

GOOD OL' BAD GUY Wrote: Feb 27, 2013 10:22 AM
Is anybody asking who will pay for the pay increase? If employers are forced to raise wages plus pay more in payroll taxes the have to chose from the following as offsets: 1. Reduce their profit margin. (don’t count on this one) 2. Reduce the number of employees. (likely) 3. Increase prices. (very likely) 4. Close facilities or even the business. 5. Stop producing items with low profit margin. 6. Use offshore labor. (I’ve considered this one) 7. More options that don’t come to mind. If minimum wage laws are so effective, why not set the minimum to $100 or $200 per hour?
Arley2 Wrote: Feb 27, 2013 10:54 AM
A superior post Mr. Bad Guy! Good job.

Businesses are in the business of making money so as to employ people and ultimately to pay the nation's bills. So when government squeezes business they have to adapt or die. When government imposes higher costs, there aren't too many options for business other than raise prices which means consumers will pay for the increases.

In the same way taxes on businesses are passed through in the form of higher prices and paid by consumers.
Kibitzer Wrote: Feb 27, 2013 10:49 AM
"If minimum wage laws are so effective, why not set the minimum to $100 or $200 per hour?"

Well with that minimum wage, unemployment would likely go over 50% because almost no one would buy things that had the prices that would be required to allow such wages to be paid.

In his State of the Union address, President Barack Obama proposed raising the minimum wage from $7.25 an hour to $9 an hour. That would be almost a 25 percent increase. Let's look at the president's proposal, but before doing so, let's ask some other economic questions.

Are people responsive to changes in price? For example, if the price of cars rose by 25 percent, would people purchase as many cars? Supposing housing prices rose by 25 percent, what would happen to sales? Those are big-ticket items, but what about smaller-priced items? If a supermarket raised its prices by 25 percent,...