(e:paul) - your thing about the braces - I have always believed that doctors are guilty of trying to drum up business for each other. The first question I would have asked is, "If this isn't medically necessary, explain to me why I should be interested in this let alone pay $4200 out of my own pocket for it?"
I was checking out a message board today and there was a discussion about the upcoming minimum wage increase and how it is going to affect American manufacturers. You all (well, most of you) have an idea of what I do and as a result its hard for me, or really pointless in the end, to break out with the "full disclosure" and let people know that because of what our company does I have a direct and privileged access to information about this particular subject. Its one thing to be a message board warrior and try to provide web page links to make a point - its completely another thing to see it on a daily basis in person and have your knowledge come from that kind of direct experience.
My viewpoint on the minimum wage increase is that generally I don't see why we shouldn't. In truth, many states (including New York) have been raising the minimum wage despite what is going on at the federal level.
Advocates of the minimum wage increase claim that a meaningful segment of society will benefit positively as a result of the increase but are being dishonest about exactly WHO will be the biggest beneficiaries. Anybody that has read a collective bargaining agreement know what I'm getting at.
The people who poopoo the idea claim that there will be job losses and price increases. Who is right?
They are both right to an extent, but the truth about all of this is that we are talking about a relatively insignificant number of the American workforce. According to a study done by the Bureau of Labor Statistics -

Creating law to satisfy a very small minority is generally bad law, but on the other hand, what will the argument be in another 10 years if the feds didn't raise the wage - that after another 10 years its still an insignificant number and therefore we still shouldn't bother raising the minimum?
Numerous states defer to the federal minimum, but just as many if not more legislate on their own a minimum wage that is $1.50 or higher than the federal minimum. Most of these states that defer to the federal amount are concentrated in rural areas, and most of the states that have a significantly higher minimum wage are concentrated in the populous states. The most interesting thing to me about the study is that two of the states with the highest minimum wages (California and Washington) by proportion actually have the lowest amount of minimum wage workers. So what does this mean - are we talking about a cosmetic or an effective law?
2.5% of American workers earn at or below the federal, but a whopping 12-14% will be affected by "spillover effects." They are talking about union workers, friends. I know this because I've read countless collective bargaining agreements and correlating wage increases when a minimum wage is increased is PART OF THE CONTRACT! We are talking about people who are earning double, triple, sometimes quadruple or more of the minimum wage, that have a contractual obligation agreed upon by their employer that will allow them to get an extra $2.10 an hour by 2008 if the feds raise the minimum.
So, who are the real beneficiaries of the minimum wage increase? Decide for yourself but knowing what I know and having seen what I seen, and especially after reading federal studies on this subject, I am convinced that the biggest beneficiaries to such an increase will be those who truly do not 'need' the money. Politicians are selling this as an initiative that will help "the little guy" but when only less than 500,000 American workers earn the minimum and the other 1.4 million in the study are service workers that in truth earn significantly more than minimum because of tips.
Opponents of the increase suggest that layoffs will occur and prices will increase, this affecting the entire middle class... and as a result the standard of living will decrease. In my view they aren't entirely incorrect, but are we talking about a massive decrease in our standard of living? Hell no. Layoffs will occur, but not like you would think. Lets take a company that is unionized and has 50,000 hourly employees as an example. With a $2.10 increase per hour, that is $105,000 per hour that the company will pay after a contractually mandated increase. Not including any overtime, this is $4.2m per week and $218.4m per year in wages! I'll give you one guess who is going to end up paying for that extra 9-figure wage bill.
Generally, a minimum wage increase will end up affecting relatively few people and isn't going to cause the benefit or the downfall that people on both sides of the argument have suggested.
Here is my take on it - we should do this because the states are already ahead of the federal government in this regard... the fact that the feds are behind the states is a bit ridiculous. We should do this not because of how many people may or may not be affected, but because its simply the right thing to do. So what if only 2.5% will be affected - for that matter, who cares if 14% will be affected? Just remember that this debate is largely driven by special interests so do not let it cloud your judgment. The federal minimum should be increased, as far as I'm concerned, because there are some in our country, even if it is only a relative few, that can benefit from it. The unions be damned - their part in this can be summarized in how wages and benefits are affecting companies like Ford... they are actually costing their members jobs - my concern is for the 50-year old lady working at BK because no other jobs exist in her area. Aren't people like her the people we should be focusing on?
Thoughtful and thought-provoking post. I agree that a federal minimum wage increase would not affect that many workers -- although I did learn something from your post, I did not know about the corresponding mandatory wage increases written into union contracts for skilled labor. Interesting.
I am surprised to see that you're frustrated that the feds are lagging behind individual states on this issue. Thought you'd be more "states' rights" and less concerned with the need for federal regulation...
First of all interesting post. I'm kinda split on if a raise in the federal minimum wage is a good idea. I think that it would help those across the country that work at that wage. I have heard the argument the raiseing the state minimum wage is a bad idea because it hurts small buisniess that pay people that wage and about that some buinesses compete for buisness from other states and so if they pay there workers more they are less competive. I think that the arugement comes down to what economic theory you belive. One of them says that inflation happens on its own and that America is always behind on raising peoples wages to the proper level for inflation. The other theory is that when you raise the minimum wage then that causes buisnesses to spend more money on workers. Since they spend more money then they increase prices. To me they both kinda make sense. It is kinda the wich came first the chicken or the egg kinda problem. What I would like to see is the federal minimum wage go up and along with that the federal amount of money you have to pay people who get tips or other compansations that makes them make less the minimum. The one thing you have to be carefull about is some companies may decide to move work to another country where the work comes cheaper so you can't make the minimum wage to high.