And now the newspaper is late in arriving. Darn! I was hoping to see some good local news and get rid of the intense anxiety and depression caused by today’s national and international news stories. Let’s see what’s on the Sacbee.com website, “Federal budget cuts would take billions from California programs” That’s probably not what I was looking for…
(And I had to use the San Jose Mercury News for the story link above because the Bee insists on readers registering first. What a drag!)
I did notice this from the article…“ California also faces penalties of $185 million in 2009 and $260 million in 2010 if the state cannot encourage more welfare recipients back to work.” And the minimum wage level is what? Do you think there might be a relationship?
If you keep raising the minimum wage too much it will force the cost of living up thus negating the increase in the minimum wage. I believe in fair wages, the science is in finding the balance where the worker and the empkiyer get the biggest bang for the buck.
ReplyDeleteYou say that is if you knew it to be true. It isn't. It is only a hypothesis distributed by the Chamber of Commerce. The minimum wage has never been high enough to bother anyone. Except for the one receiving it. Here's another...if you increased the minimum wage by $2, do you think the employee would take the $2 and rathole it? Or would they spend it? End of argument.
ReplyDeleteI say it because it's first grade economics, are you saying tax increases aren't passed on to the consumer when they reach a level thqat cuts to much into the bottom line. It's first grade eonomic Steve. It's the same principle.
ReplyDeleteYou say it's never been high enough to bother anyone. I take it you run some small businesses?
That's right...I have. Both small, under a million revenue annually. One was Union and one was not. They ground to a halt because of the poor business climate that Ronnie gave us with his Voodoo Economics.
ReplyDeleteTax increases are only passed on when competition is weak or non-existent. Taxes or higher wages, competition is what decides how much you will pass on to the customer. It's always a question of what kind of margin can you live with? There are just as many answers to that question as there are businesses.