Minimum Wage: Not What It's Cracked Up To Be
Some of us might think that raising the minimum wage is going to leave us more money to spend at the end of the week or month. Some of us can think again. Economics 101: The number one rule is businesses do not take a hit sitting down....they pass on the costs.....to the consumer.
At $5.25 an hour, Joe was making $210.00 a week. At $6.50, he is making $260.00 a week. It doesn't take a rocket scientist to figure out that there is an extra $50.00. But, guess what? After Joe pays his bills, buys his groceries, puts gas in the car, and pays the orthodontist for little Joey's teeth....all at the new, inflated prices.....he doesn't even have enough left over to take his wife out to celebrate the new raise. In fact, if he isn't careful, he will be in the hole.
On the other hand, Carlos, who was making $20.00 an hour, which amounts to $800.00 a week, can still afford to pay his bills and take his wife out. But, just to be on the safe side, he will probably get a raise too. After all, one must stay ahead of the Jones'.
And when tax time rolls around, Joe is going to realize that he can't really afford another raise. But, he is still in better shape than the millions of people who are on fixed incomes. They can't wheedle a raise out of any one. They still need the same amount of food and necessities that they used last year, but how can they pay for it? Who's going to help them out? From where I sit, it looks like Joe can't.....and Carlos? Well, you aren't going to get anything out of Carlos. He's trying to work his way to the top.....CEO. That's where you get paid 10 million dollars........for quitting.





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