Quote from Maverick74:
Let me jump in here. I have said this before and I will say it again. The issue here is not inflation. The issue is raising the minimum wage prices out the lowest skilled workers among us. The higher wages go, the more competitive their jobs become. Unemployment among the least skilled will skyrocket.
Now here's the rub. In Europe, and yes Bit, even the UK, their systems have a large social safety net so that when the lower skilled workers can't find jobs, they become children of the state. We have no such system set up here. We would literally have to completely change our government. In the UK and France and Germany, you can actually live very well on welfare, this is not true here in the US.
unemployment here is at more or less constant 5% and for those claimin' jobseeker allowance the payslip is just miserable. not everybody also qualifies to get benefit as default if unemployed..u gotta be livin' here for ages, have worked for ages and bein' fired from your job. the welfare system caters well for those incapacitated or disabled and is most recognized for that. for people survivin' on income support life is terrible harsh: cost of life here is more than double than over there in the us...look at goods, transports, etc.
Also, in the US, we have a huge surplus of mexican labor that is willing to work for almost nothing. If Europe had Mexicans taking all their low skilled jobs that would mean more and more of the low skilled workers in Europe would live off of the state. This would put an huge burden on the state. BTW, this is starting to happen now with the influx of cheap arab labor coming into France and Germany. I have a lot of family in Europe and they say the job market is atrocious. The reason for this is because of all the immigrants from both eastern Europe and the Arabs coming in. Germany and France are not able to support that many people on welfare and their countries are going broke and they are cutting back social services and even talking about raising the retirement age for seniors.
it is freakin' true the situation, especially here is extremely tough...we aint no better off than u for what concerns immigration and illegal workers. that doesnt justify payin' a meger 1quid a hour innit.
The bottom line is comparing the US to Europe is very tricky because of the immigration issue. But like many of the posters mentioned here previously, we have a huge underground labor market here. The higher minimum wage becomes, the larger the underground labor becomes. We simply cannot raise minimum wage without increasing our capacity to finance a larger more encompassing welfare system. It simply is not possible.
the same is here...every freakin' foreign biz wether a restaurant or a mini cab service hires people that either havent got a work permit or force those who have it to avoid fillin' their p45...and has been like that since well before labor introduced the first raise in min wage. these problems are not correlated with the min wage never been and never will.
What we should be doing in this country is instead of raising minimum wage is closing off our borders to keep our jobs here for Americans. And improve our educational system so we produce an educated workforce. I agree with some here that say we should possibly lower minimum wage as a deterrent to kill the black underground labor market and keep the Mexicans out and help the workers who have no job skills. Wages really should be set by the marketplace, not the government.
this is madness; look i tell ya, sooner or later they gonna raise it, theres no 2 ways about it and u'll see that all your fears were completely unfounded, trust me.