The Minimum Wage

Discussion in 'Superintendent Forums' started by LarryAylward, Jan 15, 2014.

  1. LarryAylward

    LarryAylward LawnSite Member
    Posts: 69

    Some economists believe that raising the minimum wage will help the economy because the workers getting the raises will spend more.

    But I've talked to some golf courses superintendents who believe raising the minimum wage could really help their businesses.

    Where do you stand?
  2. WenzelOSLLC

    WenzelOSLLC LawnSite Senior Member
    Posts: 709

    I think it could help seeing how prices for things keep going up and wages haven't kept up.

    However, the 100% increases some people want can't happen, at least not over night. Would be too much shock to everyone's pocket books.
  3. Skipster

    Skipster LawnSite Bronze Member
    Posts: 1,074

    I'm not aware of many economists who support the notion that increasing the minimum wage will help the economy. On the contrary, the prevailing economic data tells us that increasing the minimum wage will increase unemployment. Those at the lower end of the employment scale will be priced out of the labor market. Data also shows us that minimum wage is an inefficient and ineffective way to help the "poor."

    Some light reading on the topic:

    Minimum Wage Not Well Targeted at Reducing Poverty

    Help the Working Poor, but Share the Burden

    Most of the Benefits of a Minimum Wage Increase Would Not Go to Poor Households

    Excerpt: "Another reasonable estimate from earlier studies is that a 10 percent increase in the minimum wage would destroy 3 percent of low-wage jobs, an elasticity of 0.3. If that estimate is correct, increasing the minimum wage to $9.50 per hour would destroy 1.4 million jobs."

    So, how would raising the minimum wage help golf? I don't see any upside.

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