5 Things You Didn’t Know About the Minimum Wage

[Danno 1,228]

5 Things You Didn’t Know About the Minimum Wage

1.

For every 10 percent increase in the minimum wage, teenage employment at small businesses is estimated to decrease by 4.6 to 9.0 percent.1

According to the U.S. Bureau of Labor Statistics, teen unemployment is at 24 percent, its highest rate in 17 years.2

2.

For every 10 percent increase in the minimum wage, estimates show employment may fall as much as 8.5 percent for young black and Hispanic males age 16-19.3

African American teen unemployment is currently at 38 percent, which is four times the national unemployment rate and 27 percent higher than last year.2

3.

According to U.S. Census data, only 16.5 percent of minimum wage recipients are raising a family on the minimum wage. 83.5 percent are teenagers living with working parents, adults living alone, or dual-earner married couples.2

Raising the minimum wage is an ineffective tool to fight poverty.

4.

Economists found that 35 percent of minimum wage benefits go to the richest 40 percent of families.4

The average annual family income of those earning the minimum wage in 2009 is over $48,000.2

5.

According to a 2003 study by economists at the Federal Reserve, a 2-3 percent decrease in employment can be expected from a 10 percent increase in the minimum wage.5

The federal minimum wage goes up July 24, 2009.

On Friday, July 24, the federal minimum wage is set to jump for the third time in three years to $7.25 per hour. Yet, decades of research have shown that minimum wage hikes take a sledgehammer to the entry-level job market. As employers are faced with higher labor costs, they hire workers who have the most experience or high skill levels. That leaves unskilled applicants, particularly teens, without that critical first job experience. Since Congress began implementing the 2007 wage hike, over 480,000 teen jobs have disappeared across the country.

http://www.epionline.org/index_mw.cfm

[Peikko 1,575]

What's the point of having an entry level job that doesn't pay enough to live on, exactly?

[rebeccajo 14]

According to U.S. Census data, only 16.5 percent of minimum wage recipients are raising a family on the minimum wage. 83.5 percent are teenagers living with working parents, adults living alone, or dual-earner married couples.

I'm scratching my head trying to interpret this statistic.

[Peikko 1,575]

It means that even the minimum wage isn't enough to live on for many people but let's scrap it anyway, because it's stopping business succeeding.

[Dan J 277]

5 Things You Didn't Know About the Minimum Wage

1.

For every 10 percent increase in the minimum wage, teenage employment at small businesses is estimated to decrease by 4.6 to 9.0 percent.1

According to the U.S. Bureau of Labor Statistics, teen unemployment is at 24 percent, its highest rate in 17 years.2

2.

For every 10 percent increase in the minimum wage, estimates show employment may fall as much as 8.5 percent for young black and Hispanic males age 16-19.3

African American teen unemployment is currently at 38 percent, which is four times the national unemployment rate and 27 percent higher than last year.2

3.

According to U.S. Census data, only 16.5 percent of minimum wage recipients are raising a family on the minimum wage. 83.5 percent are teenagers living with working parents, adults living alone, or dual-earner married couples.2

Raising the minimum wage is an ineffective tool to fight poverty.

4.

Economists found that 35 percent of minimum wage benefits go to the richest 40 percent of families.4

The average annual family income of those earning the minimum wage in 2009 is over $48,000.2

5.

According to a 2003 study by economists at the Federal Reserve, a 2-3 percent decrease in employment can be expected from a 10 percent increase in the minimum wage.5

The federal minimum wage goes up July 24, 2009.

On Friday, July 24, the federal minimum wage is set to jump for the third time in three years to $7.25 per hour. Yet, decades of research have shown that minimum wage hikes take a sledgehammer to the entry-level job market. As employers are faced with higher labor costs, they hire workers who have the most experience or high skill levels. That leaves unskilled applicants, particularly teens, without that critical first job experience. Since Congress began implementing the 2007 wage hike, over 480,000 teen jobs have disappeared across the country.

http://www.epionline.org/index_mw.cfm

Correlation does not imply causation. We have also seen a huge loss in jobs due to the recession.

[Peikko 1,575]

I don't read it any other way than that it is doing the job it was intended to, that is removing jobs from the market place that are not jobs because the wage is meaningless.

[NickD 203]

All I know about minimum wage it's minimal, always part time, no benefits like paid holidays, sick leave, or health insurance. Very typical like at Wal-Mart to only work 39.5 hours per week with those hours spread over a 168 hour week. May be called in just to work an hour, don't show, and you are fired, show, the price of your transportation is ten times what you earned and non-tax deductible.

State minimum wage nor does our very strict state immigration laws apply to corporation owned farms. As long a corporation that can own many farms employs a maximum of three illegals, they are exempt from inspection, but are after a family with a bunch of kids that also can work where only the father is considered the employer. They are expected to work 24/7, definitely the 7 for a diary farm, cows have got to be milked three times a day, plus field work and getting rid of manure so more typical to only work an 18-20 hour day, for a hundred bucks a week. All this stuff came from our republicans that claim family values. Have to agree with that, working 140 hours a week does keep a family together.

[SMR 368]

What's the point of having an entry level job that doesn't pay enough to live on, exactly?

In a word, experience. If you are unemployed, you will only ever qualify for entry level jobs, by definition. If you take an entry level job, then you will gain experience and eventually qualify for a non-entry level job.

You may complain that this person will starve to death before they qualify for a higher paying job, but think about it. People don't just materialize with no support system, no skills, and no experience. Of course, most people will have to rely on family, friends, and perhaps charity organizations(which there are enough of to help people that are really down on their luck and trying to get back on their feet) while they're working that first job. Read the post. Most of them are teenagers living at home.

There will be something very screwed up in an economy if we expect a 16 year old working at target to be paid enough to support a family.

(I predict that the effect would be something like every target will be equipped with auto-stalking machines and a bunch of self checkout lines. The remaining two employees will make 20 dollars an hour to help people whose shoes scan wrong. They still can't buy much because everything in the store costs twice as much because they have to pay for the auto-stalking machines.

These machines will be designed by a handful of engineers making well above minimum wage. We're not sure what country they are in, but we'll give it the benefit of the doubt and say America. The machines, however, will be produced in Mexico and Taiwan. Of course, this is only one hypothetical and isn't really the point. The point is that you can't simply change the law and expect business owners to say, okay, let's give everyone a raise. They'll figure out how to hire fewer people.

By the way, it's no accident that I bring up outsourcing. International outsourcing has been caused by labor laws and minimum wage.)

[Peikko 1,575]

Entirely wrong, on all counts but good try.

[Mr. Big Dog 10,747]

That's awesome. This piece of wisdom is from the same man that runs www.mercuryfacts.org - a website that urges pregnant women to consume more mercury infested fish, www.sweetscam.com - a website (and now a million dollar ad campaign) that tells you that HFCS are good for you, tanning is not at all dangerous either, by the way, according to www.sunlightscam.com, another one of Berman's PR pearls. The list goes on, see for yourself what a character this guy is:

Berman Exposed