Legislature approves $1 minimum-wage increase
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#1 Jun 25, 2006
To most people with a simple grasp of economics understand that the minimum wage is a bad idea. On paper, and in our hearts it seems like a great idea, however under closer examination one can clearly see how it adversely effects our economy.
First, increases in minimum wage effects workers. At most mom and pops businesses (places I choose to support) a minimum wage increase means jobs will be lost. This means more teens will be on the streets (usually up to mischief because that's what teens do). This also means that those people trying to rise above minimum wage may get their jobs cut. The reasons are simple. Businesses need to make a certain profit to keep their businesses running. This means they have a fixed amount of money to pay salaries. These businesses usually pay the highest salaries they can while retaining profits that can in turn get invested to grow the business, in turn creating more jobs, or higher wages. When the minimum wage gets instituted or increased this means the number of employeees that can benefit from the same amount of cash flow is limited. People will inevitabley loose their jobs.
Second, is that the increase in wages will balance itself out after the initial blow to employees. Business owenrs will adjust prices and fire employees to cover the costs. This hurts the lower income middle class the most, and adds to inflation.
Third, minimum wages prevents unskilled workers from gaining crucial skills for gaining momentum in the workplace. Instead of paying thousands of dollars for a college or vocational education these employees could earn while they learn, or learn for free.
Fourth, it allows unscrupulous politicians to play on our emotions to gain votes. Only a very small percentage of workers (mostly teen and unskilled) work for minimum wage. We all want to see people be able to earn a great living and pull themselves out of poverty, but the minimum wage prevents this.
The world is tough enough without uneducated politcians making economic decisions that unnecassarily control businesses. It perverts the marketplace, and inevitabley the cost of living will go up, and the quality of living will go down.
#2 Jul 3, 2006
It's been proven that the average household income of minimum wage workers is over $40,000. So it's your neighbors kids that are getting the benefit, not the poor.
#3 May 1, 2008
That extra dollar won't even buy a cup-o-gasoline anymore.
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