2014 Candidate for MI Governor proposes raising Minimum wage to $9.25.

[wolverine]

Currently the minimum wage in California is $8.00 per hour. It will increase to $9.00 per hour in about 2 months [[effective July 1, 2014).
The wage will then increase to $10.00 per hour effective January 1, 2016. However within the state, the city of San Francisco has a minimum wage of $10.74 – the highest in the country. Fast food restaurants are still standing...

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People also forget there's other variable costs like commercial rent and even local or state regulations on food content or overlay taxes that could potentially raise costs. People shouldn't be so quick to blame rising prices on labor costs....even if prices went up a couple cents

[bailey]

People also forget there's other variable costs like commercial rent and even local or state regulations on food content or overlay taxes that could potentially raise costs. People shouldn't be so quick to blame rising prices on labor costs....even if prices went up a couple cents

So labor cost increases DONT afffect price because other things do?

Look, its pretty simple... make the cost of the inputs, in this case the worker, more expensive the price of the good or service is going to go up and businesses will look to hire the fewest possible workers. The problem here is that because the minimum wage has not kept pace with inflation, prices at McJobs type places are artificially low. The low wages are subsidized by SNAP..etc. The Populace is conditioned to expect a $1.00 value meal and will freak the fuck out when that goes away. Personally I think its about time there is a shock to the system. That is going to suck for a lot of people though because luxury goods and staples will get more expensive.

[ghettopalmetto]

So labor cost increases DONT afffect price because other things do?

Look, its pretty simple... make the cost of the inputs, in this case the worker, more expensive the price of the good or service is going to go up and businesses will look to hire the fewest possible workers. The problem here is that because the minimum wage has not kept pace with inflation, prices at McJobs type places are artificially low. The low wages are subsidized by SNAP..etc. The Populace is conditioned to expect a $1.00 value meal and will freak the fuck out when that goes away. Personally I think its about time there is a shock to the system. That is going to suck for a lot of people though because luxury goods and staples will get more expensive.

That's a great theory, but the reality [[based on past experiences with increases in minimum wage) doesn't correlate. The earnings of minimum wage workers are such a small fraction of GDP, and the amount of the proposed increase is so small, that you're looking at price increases of a fraction of a percent.

[Papasito]

I think feel-good legislation is nice and has good intentions but it has repercussions.

For example, raise the min wage, and costs for food and fuel, goods and services go up. It's all connected. So that raise you got only covers the difference in costs increases.

Another example is - for public assistance, reduced or free school lunches for your kids, for food stamps or other programs, you can only make a specific amount to qualify. Bump wages over that amount and you've devastated that low income family.

Think about what you're doing before you do it.

[bailey]

That's a great theory, but the reality [[based on past experiences with increases in minimum wage) doesn't correlate. The earnings of minimum wage workers are such a small fraction of GDP, and the amount of the proposed increase is so small, that you're looking at price increases of a fraction of a percent.

I agree.. and that is part of the issue. going from 14k a year to 19k [[if you get to the $10.10/hr) isn't going to be lifting anyone out of "poverty". 19k IS poverty for a family of 3. It isn't going to take us back to those halycon days of a head of household working a minimum wage job supporting a family. I guess my point is the discussion of raising the minimum wage is missing the point about the difference between a minimum wage and a living wage. Tinkering with the minimum wage doesn't fix the problem of a lack of jobs that pay a living wage.