Quote:
Originally Posted by woj
I don't see how raising minimum wage to $15/hr resolves this in any way... you are making an assumption that she gets $15/hr and so no longer needs government assistance?
but that's only if she keeps her job, or even gets one in the first place... and that's a big IF...
for example, your Jane is lets say 18 years old, straight out of high school, knocked up like you said... with zero experience... and wants to work at McDonalds? do you think McDonalds will hire her for $15/hr or would they rather hire some 20 year old who already has some fast food experience and doesn't have a kid (=more reliable), etc? or perhaps they will buy a self checkout machine? or setup a call center to take orders in another state?
also, at $15/hr there will suddenly be more people interested in work, all the housewives for example who couldn't be bothered to work for $7/hr, at $15/hr will enter the work force... so there will be fierce competition and so the bar for getting a job will be raised...
so, chances that your "Jane" will end up with a job, are pretty slim... and so, as a result, the cost to taxpayer will be even higher than before...
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While I agree with much of what you say, it is a different scenario than what I suggested above. I suggested that government programs are being promoted by companies as a way to subsidize their low pay. In your scenario this person can't get a job to begin with and is getting government assistance.
In theory, if she gets and/or keeps the job and can make $15 she will no longer need (or likely qualify) for government assistance so she can get off of it. Of course, this all depends on how the raise affects the economy. If the cost of living skyrockets as a result of it then she won't be any better off. We will soon be finding out just how it works out.