Budget office: Raising federal minimum wage would cost private businesses $15 billion

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  • liberty or ...? Ogden, UT
    April 18, 2014 11:56 a.m.

    Hey Mcdugall check out Schnees post for a little micro economics lesson. However, I am also accounting for something I don't even think she is accounting for. The cost you are reporting from the article does not include the compunded cost and profit each middle organization your goods travels through to get from raw materials to final product on the shelf your being disingenuous because the numbers in the article only account for the salary cost in wages paid it does not take into affect the increase on all others departments associated with the costs in producing that good. when those are accounted for the cost increases even more than the 11% she's mentioning. My quote is if the cost is passed strictly on to the consumer it will go down to between 13-20% when you add in the positions that will be eliminated not to mention the people now not working will be costing you even more because they add to the wellfare roles which again has to come from somewhere such as your pocket in taxes or businesses who again have to compensate for those costs again somewhere. So yes 20-35% increase when all is said and done.

  • GaryO Virginia Beach, VA
    April 18, 2014 2:09 a.m.

    I understand the need for people to make a living wage, but raising the minimum wage will spur inflation, which is not something we need right now. Heavy debtors will benefit as is always the case with inflation, but responsible people with little debt will bear a greater burden BECAUSE of their responsible behavior.

    That doesn't seem right.

    I'm not sure the economy is healthy enough either.

    We don't need stagflation.

  • Kings Court Alpine, UT
    April 17, 2014 6:39 p.m.

    Wages have been naturally suppressed due to globalization and automation. I try to do my part of fight lost jobs by not using the self-service check out machines at stores. Basically, stores are getting free labor from customers and jobs are lost as a result, hurting the economy.

  • Schnee Salt Lake City, UT
    April 17, 2014 6:36 p.m.

    "The total cost,... is approximately 15 billion dollars, which in terms of wages, is 0.003% increase, which does NOT even come close to the ~30% increase you mentioned."

    It's a lot more than .003% if we were just focus on the affected sectors. My math in my previous post gave 14 cents per person a day.

    Now for hand-wavy math...

    Let's assume the average person is spending around 14 dollars a day on food and everything else affected by the low wage economy; 14 cents more is a 1% increase. The difference between 10 and 15 is 2x that of 7.5 to 10, and there's many more workers that'd be affected. So... I can guesstimate

    1. Increasing wages from 7.5 to 10. -> 1% increase
    2. Increasing wages from 10 to 15. -> 2% increase
    3. Much higher # of people affected by the 10 to 15 wage boost than the 7.5 to 10 wage boost -> assume 4x more people affected, multiply row 2's result by 4 -> 8% increase

    Guesstimate: 11% increase for things like food affected by the change to $15/hr.

  • the truth Holladay, UT
    April 17, 2014 6:21 p.m.

    And where is that 15B going to come from?

    Not from the pockets of business owners and management.

    But from the increased prices, inflation, and from the reduction of jobs.

    End result nothing is changed for the poor.

    Yippee. The people win again. [read with sarcasm]

  • Fitness Freak Salt Lake City, UT
    April 17, 2014 4:11 p.m.

    IF the government wants the minimum wage to go up, ALL they need to do is start enforcing immigration laws.

    It (minimum wages)would rise dramatically, and almost overnight.

  • mcdugall Murray, UT
    April 17, 2014 3:32 p.m.

    @liberty or ...? - Where did you even come up with those numbers? The total cost, as outlined in this article is approximately 15 billion dollars, which in terms of wages, is 0.003% increase, which does NOT even come close to the ~30% increase you mentioned.

  • liberty or ...? Ogden, UT
    April 17, 2014 3:13 p.m.

    I have had this conversation with many who support this policy and they're all for it until you start explaining the consequences. You want 15$ an hour okay are you willing to pay an extra 20-35% more at the store for food and products and your dollar buys less than it used to (By the way this does not include expenses tacked on to the price for benefits, Health care, or regulation)congradulations that 2.50 box of cereal just went up to 4-5.00 or went from 17oz to 11oz want to know how much that Big mac is going to cost? "I'm Lovin it" less often. Or when you have a group of employees look at each other and justify to themselves and their co workers on why 25% are going to lose their position to compensate for the others higher wages. Then watch as they cannabalize and turn on each other each trying to justify their own position while depriving their neighbor.Learn the lesson people when you stick it to someone else for your own greed your going to get stuck.

  • mcdugall Murray, UT
    April 17, 2014 3:00 p.m.

    The minimum wage should be raised to a level that workers no longer need government assistance programs to provide for the basis needs. Currently, we as taxpayers, provide a subsidy to businesses to pay their workers wages below market rates because the government backstops the difference been working wage and livable wage.

  • John Locke Ivins, , UT
    April 17, 2014 2:48 p.m.

    Don't think so. Businesses, as we all know who have owned one or own one now, pass the additional costs on to the customer. Always.

  • worf Mcallen, TX
    April 17, 2014 2:29 p.m.

    The work of many, are not worth $15 an hour. Employers will pay for employees who benefits the business.

    To under pay would hurt the business.

  • Schnee Salt Lake City, UT
    April 17, 2014 2:22 p.m.

    15 billion divided by 300 million Americans would mean that, if 100% of this cost is passed on to the customers, it'd be an average increase in cost of 50 dollars per American per year or $4.13 a month per person, or 14 cents a day per person.