Friday, November 22, 2013

Rising the Hourly Rate, A Tactic of the Democratic Party in the 2014 Elections

Tampa, (Fl) --- It doesn't sound as a bad idea to raise the minimum wage from US$7.25 to the proposed US$10.10. In essence it could be a good stimulus for the economy but at the same time it can develop some serious consequence into some part time jobs as well products that the sellers would have to increase the prices of the items in order to cover the difference between the sales and the salaries.

The initiative proposed by Sen. Tom Harkin was supported last week by President Obama last week. As so far 31 Democratic senators and 1 Independent from Vermont have come in support of the legislation. The legislation would tie the minimum wage to inflation so the Congress wont have to debate the wage increase a few years; beside that, the tipped workers would get 70% of that rate (I guess Papa Johns Pizzas will go even beyond the roof, such as Papa John blood pressure and his lack of care of his employees.)

Talking about retail as well other business that are in sales, and the margin of hours a part timer can get depends of the profits, the raise could be problematic as the hours of part timers could drop significantly in order from the "fiscally conservative" business owners that are trying to protect their assets from any employee that is looking over time as well any full time option.

There is a small margin that if this happens, the Consumer Price Index per multiple items will increase as well, as it was stated previously with Papa John example.

Probably an initiative that can generate support and weight to the legislature of raising the minimum wage is to boost local business and small entrepreneurs instead of chains as WalMart, Exxon, just to name a few; because the key of the market economy doesn't lie in lowest prices but equal opportunities to everyone who wants to help their communities because they will have the initiative and support from the government instead of looking for a job in a company that the funds from the profits earned in a day are not going to be invested locally.

Maybe that is the main issue, is not about raising the minimum wage but find a way, create a legislature that will stimuli local economy more than corporations. Not only stimulating the people for creating job but since the money would be spinning locally also to help local banks as well credit unions; then, when the government stop looking at obvious solutions and looking at the real problems and their possible answers, then the economy will improve.

If they plan to rise the hourly rate, another problem they should tackle is the gas prices, the CIP items (food and consumables). It's impossible to pay for gas when you earn the minimum wage and less is almost impossible to buy a car when you earn nothing. If the government can put their difference to the sides, find a legal and logical way to solve all those puzzles pieces that aren't fitting in the puzzle, then the economy will improve. 

The move to make this issue a focal point, it is because it can mobilize low-income voters and to put the Republicans as a caucus who has lose their way of working for the poor and the middle class. During a February interview with The Washington Post, Democratic Congressional Campaing Committee Chairman Rep. Steve Israel of New York said the minimum wage <<could be a major wedge issue in the suburban congressional districts where Democrats hope to take seats from Republican in 2014>>.