Is raising the minimum wage the right approach

[Dogedegen]

Do not believe in only what you are reading in X, you can do more research. Seattle want to increase minimum wage just because of the usual reason countries are increasing minimum wage which is high inflation in a way that everything in the country is costly already and their fiat has fallen so much in value. Other reasons can be included but this is the major reason.

The main issue if they are doing it to fight inflation is that it does not do anything to solve inflation. Often these custom changes in income that are forced through law actually increase inflation. It is actually a loop that keeps continuing with proposals like this, it does not solve anything. Here is how it goes. First you have high prices, workers demand an increase in wages. Second you increase the minimum wage. The workers have a temporary improvement in purchasing power, but the consequence of this is that business costs are now higher. Third as the business costs are higher one thing that businesses do is increase the prices. As the prices are increased again, the purchasing power of the workers starts falling again and there is renewed pressure for more wage increases.

This is mostly a short term measure. If you see that often the average workers where minimum wage is very high don't live much better than workers in place with lower minimum wage, that is because the prices of everything where they live are very high compared to the other place.

[mirakal]

Most of the people are stuck with high cost and lower pay. The high living costs, expensive housing rental and daily needs, yet with lower salaries become the biggest burden of the citizens.

However, I don't think increasing the salary rate will be the best approach but this will be a good start to attract the workers to work responsibly on their different job descriptions. The government as well should also make a good counterpart so that not only their country's economy will soar, but also to get rid of the inflation slowly by creating life balance through controlling the prices of basic commodities and services that somehow contribute to the burden of the people.

[Rruchi man]

Seattle are facing economical crisis at the moment and several businesses, establishments and setups are facing very difficult times.
But According to this report Seattle is planing to raise its minimum wage to fight against this crisis.

Raising the minimum wage would only increase the spending ability of the citizens in the country, and that can actually help several businesses to be able to get more profits from individuals who would increase their spending from the increased minimum wage they are now receiving. But on the twist side, smaller businesses will suffer the most because in order for them to still be able to maintain profit, they may have to cut costs in some way to ensure that they are not running at a loss while trying to run a business in an economy that demands them to pay a high minimum wage to their workers who may not be generating enough profits for their business.

If this is the government's approach to helping the economy, they do not need to stop at this alone.

[goldkingcoiner]

minimum wage should be adjusted for inflation, regularly. I really do not understand why people pretend like fiat is not being constantly inflated by the government's dumb financial and political decisions?

I do not think it will have a negative effect on the economy more than the damage a too low living standard does.

[lombok]

Seattle are facing economical crisis at the moment and several businesses, establishments and setups are facing very difficult times.
But According to this report Seattle is planing to raise its minimum wage to fight against this crisis.

Raising the minimum wage would only increase the spending ability of the citizens in the country, and that can actually help several businesses to be able to get more profits from individuals who would increase their spending from the increased minimum wage they are now receiving. But on the twist side, smaller businesses will suffer the most because in order for them to still be able to maintain profit, they may have to cut costs in some way to ensure that they are not running at a loss while trying to run a business in an economy that demands them to pay a high minimum wage to their workers who may not be generating enough profits for their business.

If this is the government's approach to helping the economy, they do not need to stop at this alone.

Undeniably, raising the wage rate for employees adds new money to the national economy. The money that is being spent by consumers will be converted into income of companies, as companies can now fulfill the increased demands of the market.

The increase in labor expenses is placing a tremendous pressure on cash flow of small business entrepreneurs. It is vital for the government to have an integrated policy of stimulation in order to save small businesses from bankruptcy.

[Roseline492]

Seattle are facing economical crisis at the moment and several businesses, establishments and setups are facing very difficult times.
But According to this report Seattle is planing to raise its minimum wage to fight against this crisis.

But I don't completely concur to this strategy, the problem will be invincible if this is the approach they choose to follow, a big factor in any business closing up is the poor financial state to keep the business running increasing the minimum way that they businesses who are fighting financial battles can't meet won't solve the problem.

I think you are right because even if raising the minimum wages will increase the earning of people who are currently working but considering the crisis they're trying to tackle they should have suspended the wages increase because it doesn't seem much important right now, the main thing they should have been thinking is how to create more opportunities for people to have jobs since there are so many people without a job in the country, actually increasing it will result to more business closure in the country and that's how more people are going to loss the jobs they're currently managing, so I believe Seattle government is definitely not going to accomplish anything good if they raise it.

[RockBell]

minimum wage should be adjusted for inflation, regularly. I really do not understand why people pretend like fiat is not being constantly inflated by the government's dumb financial and political decisions?

I do not think it will have a negative effect on the economy more than the damage a too low living standard does.

What makes us think if they should increase the minimum wage it will still not affect the situation of things or even make it worse because the prices of things can still go up and that is why I feel like things can even be much more better when we just increase our means instead of just allowing the government increase the minimum wage to me nothing will. Hange things will only get worst because the government ia going to make a lot of adjustments. So it is better to make this kind of move personally because that is the only way things like this can be better.

[STT]

The idea in general is flawed because it ignores the major factors in job creation.     I believe in a bare minimum setting for wages, mostly so people dont get treated like slaves which surprisingly still can happen hence it formalises the felony conditions of exploitation mostly.

   The confusion comes from forcing any wage or price to be true, in a free-market economy this is failure from day one.  The cost of labor is a commodity or input cost to a business, and it can force the business to not exist if the wage were set too high.  So min wage can destroy jobs, reduce opportunity and raise unemployment, its an ironic effect that follows over governance as has been proven countless times.

  If government wants to create an absolute barrier and its far above the lows, gov must pay the difference to ensure no restriction occurs to business. It can't be another tax on jobs, in some cases a business automates the jobs using machines or exports the labor process abroad to ensure a low cost of labor.  Force most often fails, gov can subsidize a final wage in some way and control the budget itself in that way.

[boyptc]

Inflation is unstoppable and the only way to deal with it for most of the people is to have more purchasing power and one way of having more is through increased minimum wage.

That can also give the business have a hard time in adopting especially the small-medium enterprises.

But for the biggest corporations, that's an easy adjustment for them that they need to award to their employees.

For all to benefit with the raise, the government needs to adjust as well their taxation to these businesses and give incentive so that they can comply to the increase of wages.

[Jegileman]

I read that there's a drop in white collar jobs in Seattle because employers are cutting down their workforce. The problem with vast majority of people is that they depend so much on white collar jobs and working for someone instead of establishing their own businesses. In today's world, everyone needs to be business oriented and be creative enough to develop skills that can make you self-employed because if you depend too much on working for people in order to be paid salary, when the job terminates it will only throw you into a state of confusion. You must not be employed before you can earn a living. Even if Seattle increases their minimum wage, those that are currently working will be the beneficiary while those without a job will have to suffer their own fate.

Maybe the increase in minimum wage is to encourage those that left their works or not find interest in working to come back to work. Isn’t this minimum wage same amount they’ll pay to a labourer that works for them? I think it should be the same pay.

If local restaurants are being forced to pay that amount per hour, it’ll cost them too much to be able to pay all their staff salaries and pay tax, so it pushes them to also raise food prices which will affect the salary workers who claim to have had an increase in salary from the addition of minimum wage.

I think where the problem is now is who the cost will affect the most and be able to absorb it. The salary workers/consumers through paying high price, the business owners through paying more tax/pay their workers, or the workers through reduces hours of job? This could be where the real problem is.

[#CapsLOck]

Increasing the minimum wage is good for workers. But the key is whether their purchasing power actually increases. A nominal increase could be negligible for workers if they have to pay higher rents. Food and other costs at the same time. Meanwhile employers with increasing wages might react by increasing their prices. By decreasing their numbers of staff or by cutting their hours actually. I believe it's more appropriate to consider both sides. Safeguard workers from the erosion of their purchasing power on the one hand. And provide small companies with the support they need to offset increased labour expenses on the other. Otherwise the policy could just be shifting the burden from one group to another.

[Obulis]

Increasing minimum wage can be a sort of immediate intervention which somehow will assist but doesn't have a lasting solution to the problem. Increase in minimum wage will trigger interest of workers but should the problem continue, then this becomes as good as nothing. If the reason behind this increase is just to give workers a level ground while handling the probable cause then fine, if not such increase is valueless. Increase in minimum wage is usually the strategy of nations that are not doing well and they do this without efforts to handle their economy.

[LogitechMouse]

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Seattle is planing to raise its minimum wage to fight against this crisis.

I've seen this all the time in our country.
Government increasing the minimum wages in every region (equivalent of state in the US), and it doesn't really solve the solution at all.

I always see this happen every time. Whenever the government implement an increase in minimum wage, what other companies are doing is that, they increase the price of goods as well. Well, this only is applicable for those manufacturing companies who are manufacturing goods, but to those who aren't, what they're doing is that they either lay off some employees or just stop their business completely. A higher minimum wage = higher prices on goods and commodities so in short, it's just useless.

Increasing minimum wage isn't the solution, and while it's still a big help towards employees, it is just for me a band-aid solution.