Will Biden raise the federal minimum wage from 7.25 USD per hour to 15 USD?

[davis196]

https://www.cnbc.com/2021/01/14/biden-calls-to-raise-the-federal-minimum-wage-to-15-per-hour.html

The federal minimum wage is poised to get its first update in more than a decade.

President-elect Joe Biden on Thursday said he will ask Congress to boost the federal minimum wage to $15 per hour from the current $7.25 per hour. The federal minimum wage has not been increased since 2009.

The call to raise the federal minimum wage is part of a larger $1.9 trillion coronavirus aid package called the American Rescue Plan aimed at helping boost the U.S. economy from the damage of the pandemic.

“There should be a national minimum wage of $15 an hour,” Biden said during a Thursday night speech. “Nobody working 40 hours a week should be living below the poverty line.”

Will the US business suffer from the increased labor costs?
Will Biden and the democrats keep their promise?
Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?
Some economists say that the current federal minimum wage is way lower than the labor productivity,so increasing the minimum wage will lower the profits of the business,while boosting the consumption of the working class.

[Lorence.xD]

Will the US business suffer from the increased labor costs?

US business have been in the comfort far too long, those wage raise are needed, if they are planning on increasing the taxes then they should make the wages a little bit higher, it is not a question of whether this will hurt business, it is a question of when will this abuse of labor will end, you know how tipping in restaurant services is almost a norm in the US? That is because they want to cover up the fact that they underpay their workers and abuse their labor by paying an unlivable wage for longer hours.

Will Biden and the democrats keep their promise?

I do not know much about US Politics as I am not living there but one thing that I know and hopefully everyone that has reach the age of reason and rationality is that politician's promise is nothing more than just words.

Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?

I won't say that this question is stupid but this is actually a good question to be honest. My theory is if there are more money for this workers to spare, I think that they will be considering saving money or investing but with the coming administration trying to put a short leash on bitcoin, I think that it will be difficult to get a definite answer.

Some economists say that the current federal minimum wage is way lower than the labor productivity, so increasing the minimum wage will lower the profits of the business, while boosting the consumption of the working class.

If the wages are made to be livable, I think that productivity will increase which is good for business because you will be able to get more product output into the market if you have a productive staff and laborers, look at Dan Price, with his company having a good wages for his workers, the productivity increased which in turn made a good profit for company. The only people who will consider increasing the wages of their workers will cost them profits are the greedy capitalist of USA, like Bezos and other uber rich businesses.

[Rruchi man]

We are again expectant that Biden will do the most and fulfill his campaign promises. we are certain and hope that he will do his best to make policies that will put smiles on the faces of the American people. Bitcoin enthusiasts like I, hope strongly that his tenure will be super favourable for our darling btc.

[Coyster]

Will the US business suffer from the increased labor costs?

I don't think the employers of labor in the U.S. are going to suffer, the thing in business is about making profits and if the minimum wage is increased, businesses that prolly can't afford to pay all their workers that particular amount will have to make some changes, cutting down on workers is one option, or increasing the cost of the service they render to their customers, one way or another a business must make profit or else it's going to close down. So by and large, the increase is good for the workers, whilst their employers will seek a means to get the most out of this too.

Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?

Prolly those who are already Bitcoin Investors, yes, they could prolly increase their stash if they earn more money, which increases their spare cash, and it could go into buying more Bitcoin.

[semobo]

The sudden increase in wages may cause demand and supply shock and people won't be willing to do business if they aren't making enough profits.

If a country wants to shine then they need to support the entrepreneurs as well as the workers. So increasing the profits making opportunities to the owners should be done first before increasing the wages or else it will end up in a mess.

Well, Promises are just promises for the political leaders so don't have hope that will become true.

[jaocoincrypto18]

The sudden increase in wages may cause demand and supply shock and people won't be willing to do business if they aren't making enough profits.

Agree, For the small companies which have a smaller margin. Many of them simply cannot afford to absorb the impact of high minimum wages. In fact there are small business owners out there who if they hire full time workers at 15 dollars an hour those workers will actually make more money than the owner. Someone said that if the government raises minimum wage too much he will shut down his cleaning business and apply for work at a larger company. But then of course he will then have to compete with hundreds of other unemployed people.

[chrisculanag]

Will the US business suffer from the increased labor costs?

Yes , because many businesses are suffered also in pandemic then if Biden did not pair for this happen many businesses are going to close and shutdown.

Will Biden and the democrats keep their promise?

I dont know if Biden and her fellow partners do the promise in US but if we do, there are many bad effects to the economy of the US.

Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?
Some economists say that the current federal minimum wage is way lower than the labor productivity,so increasing the minimum wage will lower the profits of the business,while boosting the consumption of the working class.

About that we dont know because if American Worker know about Bitcoin why not , if im a worker then my salary increased because of Biden promises i then i buy more Bitcoin to hold.
Yes , the increasing of wage can affect mostly in businesses , this time we need be fair to businesses and workers. Biden need to study more if what is the good in their county.

[bitquad]

Will the US business suffer from the increased labor costs?

I don't think the employers of labor in the U.S. are going to suffer, the thing in business is about making profits and if the minimum wage is increased, businesses that prolly can't afford to pay all their workers that particular amount will have to make some changes, cutting down on workers is one option, or increasing the cost of the service they render to their customers, one way or another a business must make profit or else it's going to close down. So by and large, the increase is good for the workers, whilst their employers will seek a means to get the most out of this too.

Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?

Prolly those who are already Bitcoin Investors, yes, they could prolly increase their stash if they earn money, which increases their spare cash, and it could go into buying more Bitcoin.

Which means everything will become more expensive. And then the cost of living for minimum wage earners has not changed. They are now just paying more for stuff. So it cancels out whatever raise they received. And then they will just keep increasing it until we hit hyperinflation?!

[exstasie]

Sure, why not? When it starts driving businesses into bankruptcy en masse, the Fed can just keep the printer on, keeping corporate America afloat via the bond market.

So what if zombie companies become the new norm? Japan did it.

[bitquad]

The sudden increase in wages may cause demand and supply shock and people won't be willing to do business if they aren't making enough profits.

If a country wants to shine then they need to support the entrepreneurs as well as the workers. So increasing the profits making opportunities to the owners should be done first before increasing the wages or else it will end up in a mess.

Well, Promises are just promises for the political leaders so don't have hope that will become true.

There has been a war on small businesses. The Covid lockdown hurt small businesses more than big businesses. And now if they increase the required minimum wage it will hurt small businesses more than big ones.

[Taskford]

https://www.cnbc.com/2021/01/14/biden-calls-to-raise-the-federal-minimum-wage-to-15-per-hour.html

The federal minimum wage is poised to get its first update in more than a decade.

President-elect Joe Biden on Thursday said he will ask Congress to boost the federal minimum wage to $15 per hour from the current $7.25 per hour. The federal minimum wage has not been increased since 2009.

The call to raise the federal minimum wage is part of a larger $1.9 trillion coronavirus aid package called the American Rescue Plan aimed at helping boost the U.S. economy from the damage of the pandemic.

“There should be a national minimum wage of $15 an hour,” Biden said during a Thursday night speech. “Nobody working 40 hours a week should be living below the poverty line.”

Will the US business suffer from the increased labor costs?
Will Biden and the democrats keep their promise?
Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?
Some economists say that the current federal minimum wage is way lower than the labor productivity,so increasing the minimum wage will lower the profits of the business,while boosting the consumption of the working class.

We don't know and this one needed a deep study since it can possibly hurt the business profitability since not all of the company are capable to pay such huge amount to their employee's. Remember their are small businessman so before conducting a raise a proper assessment should be done since if that amount would be approved we can possibly some of the worker lose their jobs since for sure many companies will do a cost reduction and that will be the consequences of this actions.

[Miaallen]

Increasing the minimum wage with such percentage is not a thing any government can embark on without due considerations and consideration of what the effects the increased purchasing power that will happen as a result be on the market. If care is not taken, that might result in general inflation which will in return bring about reduction in the value of money except proper policies that will absorb the cashflow the increment will cause is put in place.

[mu_enrico]

Welcome to socialist America. The first thing it will do is make small businesses that cannot afford the wage to fire their employees. Unemployment will rise significantly due to covid and this policy.

Well, I agree with Thomas Sowell more than leftist economists/politicians who said the minimum wage is good because his rationale was straightforward.

[semobo]

The sudden increase in wages may cause demand and supply shock and people won't be willing to do business if they aren't making enough profits.

Agree, For the small companies which have a smaller margin. Many of them simply cannot afford to absorb the impact of high minimum wages. In fact there are small business owners out there who if they hire full time workers at 15 dollars an hour those workers will actually make more money than the owner. Someone said that if the government raises minimum wage too much he will shut down his cleaning business and apply for work at a larger company. But then of course he will then have to compete with hundreds of other unemployed people.

Shutting small businesses is not a great idea because they are also the ones contributing to the tax economy of every country so I don't think increasing wages won't happen all of a sudden. There are chances to increase it step by step and maybe that wage rate will be achieved in the next decade while the inflation overcomes the increase due to loss of purchase power so nothing going to be changed at all.

[Smartprofit]

Socialist principles in a capitalist society can lead to negative consequences. 

In fact, enterprises will have to pay high wages to workers.  But who, amid the global economic crisis and the coronavirus pandemic, can guarantee high profitability to small and medium-sized businesses?  It turns out that Joe Biden's ideas are populism (destruction of the economy).  We are now seeing the destruction of the market economy in the United States. 

This will likely lead to an increase in the price of Bitcoin.

[stompix]

I don't think the employers of labor in the U.S. are going to suffer, the thing in business is about making profits and if the minimum wage is increased, businesses that prolly can't afford to pay all their workers that particular amount will have to make some changes, cutting down on workers is one option, or increasing the cost of the service they render to their customers, one way or another a business must make profit or else it's going to close down.

I will bet on the second.
If raising the minimum wage was such a good solution, why not raise it to 100$?
Everybody would be happy, have thousands of dollars to spend...on a 100$ pizza since now if the pizza boy takes 20 minutes to deliver your order just his wage before takes is 5$, not adding all the taxes and the profit the company has to make. Go to a car wash, 100$ as there are two guys taking care of your car for an hour, and suddenly you will realize that you make triple but all the prices have tripled also.

Why has all the manufacturing gone to China, Vietnam, and a lot of other countries in Southern Asia?
But no problem, now you will have more money to spend on stuff produced by others while you produce nothing but debt, how could this utopia fail?  
Germany had no minimum wage till 2014 yet people from all over the world wanted to come there to work.

The only people who will consider increasing the wages of their workers will cost them profits are the greedy capitalist of USA, like Bezos and other uber rich businesses.

Down with the kulaks and their greedy profit fueled capitalism..
But when you seek a product and it's cheaper on Amazon you forget about everything and place your order.

[Jawhead999]

The increase is doubled from the current wage, this will be make many significant factors changed in US.

1. Inflation, money will go brrrrrrr and become worthless.
2. Small business will be bankrupt soon since they can't pay the employees or fire their employees.
3. Imbalance of economy since the labor cost is changed, so they need to set new price.
4. Increasing unemployment.

Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?

Yes it should be though since USD value will be decreased due to inflation, so it's more safe convert to Bitcoin or Gold.

[Lucius]

I would first single out the way Biden said it (if the text is correct in OP), and these are the following words:

-"President-elect Joe Biden on Thursday said he will ask Congress.
- “There should be a national minimum wage of $15 an hour”.

I will ask someone about something, and there should be something are very common words of politicians, but in at least 90% of cases it is pure populism, because one of the skills of politics is to say what people want to hear. If it was something Biden could do without Congress or the Senate it would be a whole other matter - he has a proposal that depends on a lot of interest, and we all know that lobbying has been brought to perfection in US politics.

I wonder why go with the idea of a 100% increase right away? It is something that will definitely be approved by the workers, but how will the employers deal with it? I assume that employers have to get some tax relief or some other benefits in order to be able to pay a worker a minimum of $15 per hour - or maybe the state will co-finance workers' salaries?

[bitgolden]

I doubt that it could go from 7.25 to 15 that easily. I feel like Bernie Saners being the head of budget committee will be a great addition to this Biden presidency, it is very easy to lose the senate, democrats won it very very difficulty even after 4 years of trump hate, we are talking about 4 years of mocking, hating, humiliating and everything you can find against someone who has committed literal crimes that would put you in federal prison if you did it as citizen, and in the end there was a storming of capitol which would have resulted with people killing elected officials (we literally saw people with zip ties to get elected officials as hostages) and yet senate is 50-50 right now.

This is a clear indication that democrats could lose senate in 2022 on the next elections, which means they have a very limited time to take the federal minimum wage higher, and if they do not act quick, they are going to fail.

[jaysabi]

https://www.cnbc.com/2021/01/14/biden-calls-to-raise-the-federal-minimum-wage-to-15-per-hour.html

The federal minimum wage is poised to get its first update in more than a decade.

President-elect Joe Biden on Thursday said he will ask Congress to boost the federal minimum wage to $15 per hour from the current $7.25 per hour. The federal minimum wage has not been increased since 2009.

The call to raise the federal minimum wage is part of a larger $1.9 trillion coronavirus aid package called the American Rescue Plan aimed at helping boost the U.S. economy from the damage of the pandemic.

“There should be a national minimum wage of $15 an hour,” Biden said during a Thursday night speech. “Nobody working 40 hours a week should be living below the poverty line.”

Will the US business suffer from the increased labor costs?
Will Biden and the democrats keep their promise?
Stupid question:Will the American working class buy more Bitcoin,if they have bigger salaries?
Some economists say that the current federal minimum wage is way lower than the labor productivity,so increasing the minimum wage will lower the profits of the business,while boosting the consumption of the working class.

Biden doesn't have the ability to raise the federal minimum wage.  It will take a new law passed by the Congress in order to do so.  The best Biden can do is advocate for it and attempt to broker a deal to get enough Republican support to pass it.  Although now that Democrats control both houses and the presidency, this is more likely than it was under Trump.