It works for congress and most govt employees

uscitizen

uscitizen

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Proposals Link Wages to Inflation
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Nov 1, 2:01 PM (ET)

By DAVID A. LIEB


JEFFERSON CITY, Mo. (AP) - When residents of Missouri and five other states vote Tuesday on an increase in their minimum wage, they will essentially be deciding whether to raise their pay not once, but again and again and again.

That's because the ballot measures include not only a one-time increase in the minimum wage, but also an automatic annual adjustment to keep up with inflation.

If all of the measures pass, the number of states with minimum wages tied to inflation will reach 10.

Supporters view the automatic cost-of-living adjustments as the best way to get around the political resistance that has kept the federal minimum wage unchanged for nearly a decade.

Business leaders warn that tying wages to the consumer price index could make labor costs prohibitive and lead to layoffs, inflation and business closings.

http://apnews.myway.com/article/20061101/D8L4EU585.html

I have not noticed the govt going out of business :)
 
uscitizen said:
Proposals Link Wages to Inflation
Email this Story

Nov 1, 2:01 PM (ET)

By DAVID A. LIEB


JEFFERSON CITY, Mo. (AP) - When residents of Missouri and five other states vote Tuesday on an increase in their minimum wage, they will essentially be deciding whether to raise their pay not once, but again and again and again.

That's because the ballot measures include not only a one-time increase in the minimum wage, but also an automatic annual adjustment to keep up with inflation.

If all of the measures pass, the number of states with minimum wages tied to inflation will reach 10.

Supporters view the automatic cost-of-living adjustments as the best way to get around the political resistance that has kept the federal minimum wage unchanged for nearly a decade.

Business leaders warn that tying wages to the consumer price index could make labor costs prohibitive and lead to layoffs, inflation and business closings.
Click to expand...
The bigger concern is that if you ever ended up getting in the situation we had under Carter with galloping inflation, you would struggle to contain inflation because wages are constantly feeding right back into it.

They should just abolish minimum wage and let the market set the rate.

uscitizen said:
I have not noticed the govt going out of business :)
Click to expand...
Yes, well if you make it law that for my business I can use guns and lock up those who choose not to pay me for products I decided they will get, I seriously doubt I would be out of business either....
 
Well we should also drop all CPI indexed raises for all govt employees then too.
Fair for the goose is fair for the gander.
 
One big issue most do not understand on the minimum wage thing. It is not just burger flipping high school kids we are talking about here. Over 80% of people making the minimum wage bring in over 50% of their household income....
Think about it folks.
 
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