Democrats Options

[knucklehead]

If you didn't read this on CNN yet, this is a new thread in response to that "Congress getting richer" thread I posted.

I'm not a democrat, but I do admire them for this and didn't expect it at all. I just hope they stick to it. After all the shit republicans have pulled recently, I don't even wanna be republican anymore. Doing things like this is what it's all about, whether they're really just vying for public opinion or not.

WASHINGTON (CNN) -- A week after the GOP-led Senate rejected an increase to the minimum wage, Senate Democrats on Tuesday vowed to block pay raises for members of Congress until the minimum wage is increased.

"We're going to do anything it takes to stop the congressional pay raise this year, and we're not going to settle for this year alone," Democratic Leader Harry Reid of Nevada said at a Capitol news conference.

http://www.cnn.com/2006/POLITICS/06/27/con...wage/index.html

[pebkac]

By raising the minimum wage you artificially raise inflation. You push the prices of goods up by "increasing" the standard of living. Economists have been screaming this for a long time.

If the places that pay minimum wage to their employees have to increase that amount they will compensate by first lowering benefits to those people, then raising prices. If they provide a good or service that is common or sought after, those people who got an increase in wage will not see an increase in their ability to purchase goods.

So if Wal-Mart increased their minimum wage, the workers would more than likely see their benefits drop and then the fact that they still couldn't buy stuff at the cheap store they work up.

Heh... I dunno if you've ever worked for a place that pays minimum wage, but the benefits are hardly great.

Secondly, the prices the stores charge are regulated by market forces. The wages they pay aren't quite as much.

It's a lot easier to quit shopping at Wal Mart instead of Albertsons if you're not satisfied with the prices. It's nowhere near as easy to quit Wal Mart if the wages aren't beneficial.

On the other hand, look at things this way: if employers pay their employees a living wage, the economy would also save beaucoups of money in welfare. This means lower taxes, so in the long run, the effect on the economy wouldn't be quite as dramatic.