Tuesday, January 28, 2014
People likely are surprised and dismayed by this, but he is well within his right for federal contractors. Pity he can't just raise everyone's pay rate. People scream about how it will tank the economy, but they forget salaried employees don't make anything near minimum wage, depending on the hours they work. Sometimes they make 15-20 dollars an hour, sometimes 3 dollars an hour, as they do not get overtime.
But here is the next thing about this, at $7.25 an hour someone will earn a massive $290 a week. Which means they bring home around $217 a week after taxes (figured at a 25% tax rate for state and federal, social security, unemployment, etc). At $10.10 an hour someone will earn a slightly better at $404 a week, bringing home $303 a week after taxes. So that is a bank breaking $86 dollars a week, per employee.
Something else people are not taking into account is that companies will raise the prices for their wears before the minimum wage increase hits the general public. When the minimum wage increased here the last time, the earnings for my little $.25 an hour, were spent before I got it, because the price of almost everything jumped by thirty cents an hour.
The contracts that most employers have with companies also include language for this occurrence. IE; If I operate a security company, any contract I have with another company to provide my service has a clause that allows for me to increase my fee based on any wage increases I am forced to undertake.
But this would not be such an issue if people would get off the bare minimum pay for people outside of the truly unskilled, uneducated workers, but this is not the true picture of what the GOP tells you. The truth is, many employers would rather pay the bare minimum to their employees. +Larry Dillon, said it a while back GREED. They can maximize profit by paying employees chump change, so they think. More on this from an I/O perspective later.