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View Full Version : Colorado's minimum wage becomes 1st in US to drop


Pat
12-31-2009, 05:52 PM
And the sniveling begins.
They weren't complaining when it went up based upon inflation, were they?

http://news.yahoo.com/s/ap/20091231/ap_on_bi_ge/us_minimum_wage_drop;_ylt=AhHU6OQciucqycIIShzVuz6s 0NUE;_ylu=X3oDMTNvNG5xZTlpBGFzc2V0A2FwLzIwMDkxMjMx L3VzX21pbmltdW1fd2FnZV9kcm9wBGNjb2RlA21vc3Rwb3B1bG FyBGNwb3MDNQRwb3MDMgRwdANob21lX2Nva2UEc2VjA3luX2hl YWRsaW5lX2xpc3QEc2xrA2NvbG9yYWRvc21pbg--


Colorado's minimum wage becomes 1st in US to drop
AP
By KRISTEN WYATT, Associated Press Writer Kristen Wyatt, Associated Press Writer – 1 hr 48 mins ago

DENVER – Colorado's minimum wage will drop slightly in the new year — the first decrease in any state's minimum wage since the federal minimum was adopted in 1938.

Colorado's wage is falling 3 cents an hour, from $7.28 to the federal level of $7.25. That's because Colorado is one of 10 states that tie the state minimum wage to inflation. The goal is to protect low-wage workers from having unchanged paychecks as the cost of living goes up.

But Colorado's provision also allows wage declines, and the state's consumer price index fell 0.6 percent last year, so the minimum wage is going down.

The lower consumer price index, attributed to lower fuel prices, would have forced the wage down 4 cents an hour, But no state can go below the federal minimum of $7.25.

Thirteen other states and the District of Columbia will keep a minimum wage higher than the federal minimum, according to the U.S. Labor Department. Alaska will join them Friday when its minimum wage rises 50 cents to $7.75.

Colorado's drop is small — but those among the estimated 48,000 residents earning the minimum shook their heads at the possibility of pay cut.

"It is hard to make it, hard to get by," said John Mullen, 50, an out-of-work construction worker waiting for a bus on a bitterly cold New Year's Eve in Denver. Mullen said he remembers making minimum wage at a factory and having enough for small comforts.

"You'd get paid every Friday, have enough money to go catch a poker game or take your girl out to a dinner," Mullen said. "But the law is the law. What can you do?"

Others said that even a tiny drop for the lowest-paid workers will be felt.

"Yeah, it's 3 cents an hour. But that 3 cents an hour adds up at the end of 12 months," said 59-year-old Gary Foeller of Denver, a house painter who hasn't worked in weeks but usually earns more than the minimum wage when he has a job.

The 3-penny difference would amount to about $62 a year for someone who works 40 hours a week and doesn't take time off. The decline won't affect tipped workers, such as waiters, who already have a base salary below $7.25 an hour.

State labor officials insist that few employers paying minimum wage will drop workers' wages, though they had no figures or estimates.

"We anticipate most employers will keep paying their current wage," said Cher Haavind, spokeswoman for the Colorado Department of Labor and Employment.

About 4 percent of the state's 1.2 million hourly workers earned minimum wage in 2008, state officials said.

At a Dairy Queen restaurant in suburban Centennial, owner Mike Trinh pays his six year-round employees and eight summer workers $8 an hour. Anything less, and the workers don't stay, he said.

"You have to be competitive if you want them to stay on and do a good job," Trinh said.

Other states with adjustable minimum wages are Arizona, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont and Washington. But the minimum wage isn't expected to drop in any other state next year. Most states that tie the wage to inflation make no provision for lowering the amount, so the minimum wage stays flat if the cost of living falls.

In other states with adjustable wages, the cost of living hasn't dropped, or the wage is already at the federal minimum.

In Florida, for example, a declining consumer price index would drop the wage 4 cents to $7.21. But that's less than the federal minimum wage of $7.25 an hour, so paychecks won't change for Florida's lowest-paid workers.

Foeller, the Denver house painter, said he hopes employers won't drop wages, especially for adult workers.

"It's impossible to make it on minimum wage now. How can you survive?" he said.

Pat
12-31-2009, 06:12 PM
It took me a while to find some facts about the number of people that actually have minimum wage jobs, but I did find this snippet in a WSJ article.
According to new numbers from the Labor Department, in 2008 only 1.1% of Americans who work 40 hours a week or more even earned the minimum wage. In other words, 98.9% of 40-hour-a-week workers earn more than the minimum. The data also show that teenagers are five times more likely to earn the minimum wage than adults. Minimum wage jobs are nearly all first-time or part-time jobs, and an estimated two of every three minimum wage workers get a pay raise within a year on the job.
Full article is here, http://online.wsj.com/article/SB10001424052970203440104574402820278669840.html

Socialist_Revolution
12-31-2009, 06:14 PM
And the sniveling begins.
They weren't complaining when it went up based upon inflation, were they?

http://news.yahoo.com/s/ap/20091231/ap_on_bi_ge/us_minimum_wage_drop;_ylt=AhHU6OQciucqycIIShzVuz6s 0NUE;_ylu=X3oDMTNvNG5xZTlpBGFzc2V0A2FwLzIwMDkxMjMx L3VzX21pbmltdW1fd2FnZV9kcm9wBGNjb2RlA21vc3Rwb3B1bG FyBGNwb3MDNQRwb3MDMgRwdANob21lX2Nva2UEc2VjA3luX2hl YWRsaW5lX2xpc3QEc2xrA2NvbG9yYWRvc21pbg--
Ohio's minimum wage increases are based on inflation as well, Ohio voters inacted the wage increase in 2006 with the first one on Jan 1 2007, the states wages will not go up tomorrow as well, it was to have jumped to 7.50 an hour from the current 7.30 an hour. I make the 7.50 rate at my job so i am just above the state and fed wages.

Pat
12-31-2009, 06:29 PM
Ohio's minimum wage increases are based on inflation as well, Ohio voters inacted the wage increase in 2006 with the first one on Jan 1 2007, the states wages will not go up tomorrow as well, it was to have jumped to 7.50 an hour from the current 7.30 an hour. I make the 7.50 rate at my job so i am just above the state and fed wages.
I was perusing the Bureau of Labor Statistics website to see if I could find the actual percentage of people making minimum wage, and the demographics of those people. I couldn't find anything. The WSJ article only mentions percentage for full time workers. I have a feeling that there aren't very many people trying to maintain a household on a minimum wage salary.

After over 30 years in the workforce, I have never worked for minimum wage. Neither of my kids has ever worked for minimum wage either.

Socialist_Revolution
12-31-2009, 06:39 PM
I was perusing the Bureau of Labor Statistics website to see if I could find the actual percentage of people making minimum wage, and the demographics of those people. I couldn't find anything. The WSJ article only mentions percentage for full time workers. I have a feeling that there aren't very many people trying to maintain a household on a minimum wage salary.

After over 30 years in the workforce, I have never worked for minimum wage. Neither of my kids has ever worked for minimum wage either.
My wife and i are still struggling a bit to make it but we are doing ok. She makes the state minimumof 7.30 an hour at her job...she is a housekeeper for best Western, but I have to say her boss is a greedy asshole, VERY frugal and it is not like he does not have money, he owns not only the hotel she works at but also an apartment complex but he refuses raises to his employees and provides no health insurance coverage, my wifes only raise would have come tomorrow when Ohio's state min. wage woul have gone up.

That being said we will have made around 22 grand combined for 2009 which still is not good but going on a definite upswing.

Pat
12-31-2009, 06:53 PM
My wife and i are still struggling a bit to make it but we are doing ok. She makes the state minimumof 7.30 an hour at her job...she is a housekeeper for best Western, but I have to say her boss is a greedy asshole, VERY frugal and it is not like he does not have money, he owns not only the hotel she works at but also an apartment complex but he refuses raises to his employees and provides no health insurance coverage, my wifes only raise would have come tomorrow when Ohio's state min. wage woul have gone up.

That being said we will have made around 22 grand combined for 2009 which still is not good but going on a definite upswing.
I sure hope you and your wife aren't counting on the government to improve your lot in life.
That's a losing proposition.
Take ownership of your own life and seize it. You'll do far better that way.
Employers will pay what one is worth. Make yourself valuable and more money will come.

MintJulep
12-31-2009, 06:54 PM
So what's up SR or should I say, Spamalot? :lmao2: :lmao2:

doctordog
12-31-2009, 06:59 PM
I sure hope you and your wife aren't counting on the government to improve your lot in life.
That's a losing proposition.
Take ownership of your own life and seize it. You'll do far better that way.
Employers will pay what one is worth. Make yourself valuable and more money will come.

Besides internet service and computers, I wonder what other extras this guy has that prevents him from having insurance?

Pat
12-31-2009, 07:09 PM
Besides internet service and computers, I wonder what other extras this guy has that prevents him from having insurance?
Perhaps this Medicaid (http://www.freequotesusa.com/pz2006?gclid=CMDqzNfygZ8CFRMhnAodg3_XKw)

Pat
12-31-2009, 07:23 PM
http://economics.gmu.edu/wew/articles/09/CollusionAgainstOurYouth.htm

A MINORITY VIEW
BY WALTER WILLIAMS
RELEASE: WEDNESDAY, DECEMBER 16, 2009

Collusion Against Our Youth

I've grown somewhat weary writing about the devastating effects of minimum wage laws but The Wall Street Journal's "Black Youths Miss Out on Good Job News," (Dec. 4, 2009) warrants another try. Today's overall teenage (16-19) unemployment rate, at 25 percent, is the highest since World War II. Black teenage unemployment, at 50 percent, is also the highest since World War II.

How do you think the Reverends Jackson and Sharpton would explain the unemployment difference between black and white teens? You can bet the rent money they would say: It's racial discrimination. Let's investigate. Was racial discrimination in 1948 greater or less than racial discrimination today? In 1948, the unemployment rate for white 16-17 year olds was 10.2 percent while that for blacks was 9.4 percent. Among white 18-19 year-olds, unemployment was 9.4 percent and for blacks it was 10.5 percent. During that period, not only were the unemployment rates similar, black teenagers were either equally as active as whites in the labor force or more so.

According to the widely shared Jackson/Sharpton vision of the world, racial discrimination must have been less during the late 1940s than it is today. In fact, as early as 1900, blacks as a group were more active in the labor market, a statistic known in economics as labor force participation rate, than whites. This was true up until the late 1950s. Anyone with one ounce of brains would reject the argument that less racial discrimination accounts for the lower black teen unemployment rate and greater labor force participation during earlier periods.

So what might help to explain? The major villain is the minimum wage law. With each increase in the minimum wage, black teen unemployment rose relative to whites and teen unemployment rose relative to adult. Why? Put yourself in the place of an employer and ask: If I must pay to whomever I hire $7.25 an hour, plus mandated fringes such as Social Security, vacation, health insurance, unemployment insurance, does it pay me to hire a worker who is so unfortunate so as to have a skill level that allows him to contribute only $5 worth of value an hour? Most employers would view hiring such a person a losing economic proposition. Therefore, the primary effect of a minimum wage law is that of discrimination against the employment of low-skilled workers.

Teenagers tend to be low skilled. They lack the experience, knowledge and maturity of adults. That means they will be the primary victims of a minimum wage law. But why are black teens more heavily impacted than white teens? Black teens are far more likely to come from broken homes and attend some of the worst schools in the nation. Therefore, a law that discriminates against the employment of low-skilled workers will have a greater impact on black workers. Moreover, the minimum wage subsidizes racial discrimination. After all, if you must pay $7.25 an hour to whomever you hire, you might as well hire people you like the most, even if they are of identical skill.

The little bit of money a kid could earn after school and on the weekends is not nearly as important as the other benefits from early work experiences. Any kind of job, paying any wage, teaches a youngster that he must be on time, respect supervisors, develop good work habits, plus there's the self-esteem and pride that comes from being at least financially semi-independent. Early work experiences benefit any kid but are far more important for kids from broken homes, who reside in crime-ridden neighborhoods and attend rotten schools. If they are to learn anything that will make them a more valuable employee in the future, it will have to come from work; they won't learn it at home or in the schools. For Congress to enact higher and higher minimum wages, to benefit their union supporters, is shameful and cruel.

Walter E. Williams is a professor of economics at George Mason University. To find out more about Walter E. Williams and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.

COPYRIGHT 2009 CREATORS.COM

Socialist_Revolution
12-31-2009, 08:05 PM
Besides internet service and computers, I wonder what other extras this guy has that prevents him from having insurance?
You mean the computer that my father in law built for me and gave to me for free and the cheap 10 dollar a month dial up service we have from netzero?

As far as you "comment" on what we make from the other post...my wife works THREE jobs basically at the hotel, housekeeper where she gets paid a flat rate of 4 dollars per room, laundry where she makes 7.80 an hour AND front desk where she makes 7.30 an hour.....I also earn every penny I get working an average of 35 hours a week at my job at the diner for 7.50 an hour, we dont have alot of "extras" other than maybe the cable we got not even a month ago, unless you call phone service an extra, we pay more for that because we live a distance away from family and friends and need unlimited long distance to be able to call anyone.