Wednesday, June 3, 2015

Impact from the rising minimum wage

To illustrate, many working 30 hours before will work two jobs, one for 20 hours and one for 10 hours. The total salary could be higher but you have to consider the commute time/cost for the second job and the idle time between jobs.

The new yardstick for unemployment rate:

- median salary.
- participation rate (counting those not participating due to the unemployment benefits have been exhausted).
- not counting some twice.
- the rates of changing of the above.

Outsourcing is a problem to employment. Globalization allows the companies to hire the best at the least costs in any country. With all the regulations (to 'protect' our workers). welfare, entitlements and the burden to service our debts (that's why excessive printing money is not a long-term solution), the US economy does not look good and we cannot compete in many areas.

Most service jobs cannot provide good income. The days of leading a middle class living style by sweeping floors in a GM plant are long gone.


* Min. wage to $16! In Boston, they ask only for $15.

How much does the recent graduate make? If they make about the same, why they go to college except having a good time, finding spouses and paying the college loans for the rest of their misery lives.

Impacts are: 1. Many wage conscious companies such as MCD will lay off employees. 2. Some welfare assistance could be reduced due to rising salary. 3. We are less competitive in some factory jobs compared to many foreign countries.

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