KiloAlpha

I just saw on the news that the PA minimum wage has increased to $6.25 per hour effective 1 Jan 2007; increasing to $7.15 in July 2007. It is nice to know that in the coming months, I will have the pleasure of experiencing a reduction in my buying power.

What are everyone’s thoughts on increasing the minimum wage?

I am personally against it. The primary beneficiary will be the US government in the form of increased tax revenue. Ultimately, employers will simply pass their increased labor cost back to the consumer and those consumers not being compensated in the form of minimum wage will suffer reduced buying power. On a side note, it’s nice to know that I am earning a mere $500 per month above minimum wage; ahh the glorious life of a pilot.

CE750

I think that those making a living (and many are) at the bottom of the wrung deserved it. Frankly, in a "Free market" economy, if you set a wage at $2.50/hr you'll find some poor desperate soul to take it.. so I see the minimum wage is a no brainer. I used to be a complete free market believer in my younger days, but the free market can only work and work fairly in a moral and Christian (replace that with your religion of choice) society, otherwise human greed with take hold and take advantage.

I mean a good example of the "Free market" is the commuters.. look at the number of guys lined up to interview for $15,000/yr jobs..

Don't you think a minimum wage for an ATP should also be looked into? Sure the airline tickets may go up a few bucks, who cares?

Rant over..

Pilotpip

I don't think an increase in min. wage has a significant impact on the price of goods. I live in Missouri but work in Illinois. The prices for groceries are the same in both states despite Missouri's minimum wage remaining at $5.15 for years. Illinois is higher and I believe that they just raised it again.

How many people actually make minimum wage? Even fast-food joints are paying better than that. There are enough unskilled jobs out there that pay more than that to begin with and this is why I think it will have a marginal impact on the average American at worst.

Corporate greed on the other hand, is another story...

NE_Pilot

People are willing to pay more for a service if you give them a reason to.

CE750

exactly, the truth is .. the fear mongering that the business lobby tries to use to keep min wage down, which is the BS that all things will become more expensive is total BS... what is true, is that their FAT profit margins will just narrow a bit, and that is what gets them worried. I've been on the owner and employee side of the fence, and a good manager can run a profitable business AND pay a good wage.. if the two are not compatible, then the business model is flawed, or there is a windfall to the ownership that is both immoral, and in the long run going to lead to people problems in retention, and quality.

A perfect example is "In and Out" burger.. They pay upwards of $10/hr to start, with better benefits packages than most pilot jobs today.. they're menu is simple, and the quality of their food is top.. YET.. they're growing like gangbusters, and they're employees are among the best paid and happiest in the industry.

Try to walk up to the counter at a In and Out and stand there.. not a few seconds will pass by before someone comes up and asks you if you need anything.. Now, do the same at the local McDonnalds or other bottom dweller minimum wage hugger...... nuff said.

Pilotpip

I recently walked out of an instructing job because of the owner of the flight school. He was exactly the opposite of what you described. He pays his employees lower than any flight school in the area, charges more for services than any flight school in the area, and is willing to loose a customer who would spend a ton of money there long term over a few dollars in a minor dispute. Customers are fed up with this attitude as well and I'm seeing more and more of them at my new flight school. They pay better, charge less, and have been in business for more than 30 years.

Customers are fed up with cost-cutting measures such as outsourced tech help to India (I personally won't buy another Dell because of this). Some companies that have outsourced services like this are bringing them back in-house stateside because the costs they have cut are not enough to offset the loss of revenue.

Another great example, the US automakers. They blame healthcare and union labor for the increased costs. As a result they lay off millions and outsource tons of work to Mexico. Toyota on the other hand, makes many of their cars in the US, pays union employees well, and is making a profit while people are paying a premium for their product. Maybe US auto makers are ashamed of the fact that they've been making the same inefficient, poorly constructed product for years. Gas prices have nearly trippled, and they're still trying to operate like it's 1997. Sounds strikingly similiar to the industry we're in.

I'm a strong believer in the old saying that if you take care of your people they take care of you. Maybe Herb was on to something...

iflyjets4food

I think it is necessary for those who have to try to live on minimum wage, but in the long run, it won't help too much. I was reading in the local PA paper that lots of businesses are afraid on the new pinch it will cause. This means they'll have to raise prices. Now their workers have to pay more to get the goods they already need. This means they'll need another increase in their wage. It is a never ending cycle.

CE750

that is an economic fallacy. Trust me, this is not how it works. Things like economic conditions, savings spending rate, interest rates, and effective tax bracket have a lot more effect on the "cost" of things than minimum wage.

To believe all that crap, is the same as believing the managers of airlines that pilots are over paid and they'd all go out of business if they had to pay more.

ryane946

Well Said!

Even better.

I am pretty much a "laissez faire" capitalist. But there needs to be some sort of a minimum wage. See above quote. There are certain areas that need it to be higher than the federal wage. Try California. We're at $7.50, and its higher in certain cities (San Francisco used to be $8.50, but I think it is higher now).

RedGuy

The problem with US auto makers is the UAW, they've dug their own grave. The average UAW worker is EXTREAMLY lazy and that low productivity combined with very high wages are the cause for their layoffs.

Personally I don't think I'll ever buy a "Japenese" car, even though they're basically all built in the US. I live in Detroit and it's just un-American to drive a Toyota! Plus I've never liked the styling of most foreign cars.

I also don't think the higher minimum wage will effect us much, like others have said there just aren't that many jobs out there that pay minimum wage anyway. I've made more than minimum wage since I was about 15.