Wage Cuts Increase Applications for Instant Money

A Close Shave

Colorado announced that starting January 1 2010, the state minimum wage will be reduced by $0.03 per hour. Colorado officials state that the annual difference in wages after the reduction will be $62. The figure may seem like small change to some, while others may ignore the news altogether, because it does not affect them due to their larger salaries. However, many people will not know what is happening, bury their head in the sand and head to the nearest computer to make an online application for some instant money. These people live on minimum wage, and the figure of $62 is certainly big enough to make a difference in their income level.

The Stubble Leads to the Shave

Colorado links their minimum wage to the current rate of inflation, so the figures that led to the minimum wage decrease from $7.28 per hour to $7.25 are directly connected to the 0.6% decrease in the consumer price index. If the consumer price index was the only indicator available to encourage a decrease in wages, things are certainly wrong in that state. The consumer price index gives an indication about certain prices in the market, but it does not take into account the other factors that lead to higher than normal expenses. How does one explain the charges of a doctor by a sick person, or that of a lawyer who will not lower his fees because the consumer price index has decided to go down by 0.6%? How are those who work on minimum wage going to understand these factors? And why would they even care about the consumer price index?

Shaving Excuses

The state has made it clear that the annual decrease in wages will only amount to $62, but they go on to say that the amount of the decrease is subject to someone who works the full 40 hours a week with no time off. Are they suggesting that someone who is working for minimum wage isn't supposed to get sick? If not, then that figure of $62 will begin to increase drastically. If that is the case, there will be many people who will get extremely worried and head for some instant money.

The After-Shave

Now that the law has come into force, the average, blue collar employee will be facing some rather large difficulties. Colorado should have considered all aspects of this plan, rather than concentrate on the consumer price index alone, because there are people in the state who cannot afford the so-called small decrease when all the other costs associated with this wage cut are added. They will be left with a huge hole in their wallet along with a debt from the instant money they had taken.

Coming at a time when people were looking forward to a better year, it seems that even more problems have gone to the people who least expected the decrease in minimum wages. The very people who took millions as assistance from the federal government are now the ones who have created this new law.