Better Pay Now

Better Pay Now

“So can anything be done to help these workers, many of whom depend on food stamps — if they can get them — to feed their families, and who depend on Medicaid — again, if they can get it — to provide essential health care? Yes. We can preserve and expand food stamps, not slash the program the way Republicans want. We can make health reform work, despite right-wing efforts to undermine the program.”

“And we can raise the minimum wage."

First, a few facts. Although the national minimum wage was raised a few years ago, it’s still very low by historical standards, having consistently lagged behind both inflation and average wage levels. Who gets paid this low minimum? By and large, it’s the man or woman behind the cash register: almost 60 percent of U.S. minimum-wage workers are in either food service or sales. This means, by the way, that one argument often invoked against any attempt to raise wages — the threat of foreign competition — won’t wash here: Americans won’t drive to China to pick up their burgers and fries.”

“Still, even if international competition isn’t an issue, can we really help workers simply by legislating a higher wage? Doesn’t that violate the law of supply and demand? Won’t the market gods smite us with their invisible hand? The answer is that we have a lot of evidence on what happens when you raise the minimum wage. And the evidence is overwhelmingly positive: hiking the minimum wage has little or no adverse effect on employment, while significantly increasing workers’ earnings.”

“When it comes to the minimum wage, however, we have a number of cases in which a state raised its own minimum wage while a neighboring state did not. If there were anything to the notion that minimum wage increases have big negative effects on employment, that result should show up in state-to-state comparisons. It doesn’t.”

“Institute estimated that an increase in the national minimum wage to $10.10 from its current $7.25 would benefit 30 million workers. Most would benefit directly, because they are currently earning less than $10.10 an hour, but others would benefit indirectly, because their pay is in effect pegged to the minimum — for example, fast-food store managers who are paid slightly (but only slightly) more than the workers they manage.”

 “Now, many economists have a visceral dislike of anything that sounds like price-fixing, even if the evidence strongly indicates that it would have positive effects. Some of these skeptics oppose doing anything to help low-wage workers.”

“In short, raising the minimum wage would help many Americans, and might actually be politically possible. Let’s give it a try.”

FIRST OF ALL I am not against or for raising the minimum wage.

I am against absence of real economical analysis by economist. In this case it is Mr. Krugman. In other cases it will be “many economists”, as describe them Mr. Krugman.

If we will increase minimum wages for 30 millions workers from $7.25 to $10,10 it will need at least $17,100,000,000.

Who will pay money? I am doubt, that owners will reduce their profit. It will be customers, which will pay for this rosy project.

Let not forget that we still have 7.2% of unemployment. We must create possibilities for job for everyone. It will increase numbers of customer, which in result will create profit for owners and resources to increase minimum wages. It will be done by “the law of supply and demand”. Than more possibilities of finding high pay jobs, than more must pay owners of businesses to keep their workers inside any business.

Politically motivated blindness is making from smart economist useless part of political propaganda machine.