Minnesota House panel OKs minimum wage hike, 40-hour workweek for all

  • Article by: Rachel E. Stassen-Berger , Star Tribune
  • Updated: April 29, 2013 - 10:03 PM

House proposal would lift minimum wage, make overtime and family leave easier to get.

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mngopwatchApr. 30, 13 7:01 AM

“Where the hell are the workers in this particular argument?” Mahoney, DFL-St. Paul, asked before the measure passed. Does he mean the entry level workers looking for a summer job or graduating High School? They will be sitting at home wondering why there are so few jobs and why no one will invest in them. Or the Union worker getting an automatic pay raise from this legislation despite earning far more than the private market pays. The DFL is an economic health nightmare for most of us, but they do pay off their supporters.

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pendrakeApr. 30, 13 8:18 AM

1. People demand a raise in Min Wage because cost of living has increased.
2. Employers are forced to raise their prices to pay for higher min wage.
3. Higher costs of goods increases cost of living
4. Go to 1.

And as a secondary effect, the higher cost of living causes inflation, lowering the value of what you have saved, making your retirement accounts, etc worth less and less.

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my4centsApr. 30, 13 8:20 AM

Democrats are creating a perfect storm - raise taxes on those who build businesses and hire others AND force those same people to increase the pay and benefits that they offer. Suddenly, those South Dakota ads will have their impact as the successful flee the state.

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allhailfsmApr. 30, 13 9:25 AM

Successful businesses pay better. "OKLAHOMA CITY, April 16, 2012 /PRNewswire/ -- Hobby Lobby Stores, Inc., a privately held retail chain with more than 500 arts and crafts stores in 41 states, today announced a minimum wage increase to $13 per hour for full-time hourly employees of Hobby Lobby and its affiliated businesses, including Hemispheres and Crafts, Etc!, effective immediately. The company also announced a minimum wage increase for all part-time employees to $9 per hour. This increase for full-time hourly and part-time hourly employees will raise the pay of more than 15,300 employees nationwide. Hobby Lobby's new minimum wage is nearly 80 percent above the national minimum wage of $7.25 per hour. "Our employees are essential to the continued success of Hobby Lobby stores nationwide," said David Green , CEO and founder of Hobby Lobby. "We believe they deserve to be recognized for their commitment to our company."

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exgeronimoApr. 30, 13 9:54 AM

Economic studies have proven repeatedly that higher wages do not necessarily translate to higher costs or hurt business. The reason is that people paid a higher wage tend to work harder so they can keep their decent-paying job. Additionally, it reduces turnover and absenteeism, all of which lower costs to businesses and increase efficiency. It can actually result in lower cost products and more profitable business, a reason that many top companies pay much higher wages than they need to!

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pendrakeApr. 30, 1310:35 AM

"The reason is that people paid a higher wage tend to work harder so they can keep their decent-paying job."

You can always find a minimum wage job. Why work harder at a job that is easily replaced? Now people will work harder if they earn raises.

Labor costs are almost always the highest costs of doing business. Money doesn't grown on trees. Employees can work harder, but that doesn't always add up to more product sold. Demand for that product needs to scale up if supply scales up. If there is an excess in supply, the cost goes down. This is basic Econ 101 stuff here.

There is only 4 outcomes that can pay for an increased min wage:
A: Raise the cost of the goods you are selling. (Inflation, increased cost of living)
B: Lay off employees, employees will work harder to make up for loss of employees. (also increasing unemployment, and reducing 'entry job level experience' for young workers
C: Somehow, people now have a higher demand for your product that will increase profits enough to pay for the increased labor costs. (Wishful thinking)
D: Move jobs over seas (if possible). Why pay min wage here, when you can get the same labor over seas for $1.25/hr? (increase local unemployment).

A, B, and D are the most likely to happen. There is no free lunch. Money doesn't grown on trees.

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my4centsApr. 30, 13 4:03 PM

"Economic studies have proven repeatedly that higher wages do not necessarily translate to higher costs or hurt business." ----- The key word in this statement is "necessarily." In some cases it may not hurt, in other cases it will. If a business CHOOSES to do this, as Hobby Lobby has done, that's great. Government shouldn't be making this decision for everybody.

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