Enough playing politics with the minimum wage

Posted By on November 4, 2014

There is a populous push coming from Democrats and the Obama administration to increase the Federal minimum wage B1jCSpcCAAEOEQ3… instead of letting markets to set the proper levels. It’s understandable with all the negatives facing the Whitehouse and failing policies being pushed by Democrats to create jobs, that politicians resort to simpleton tactics that appeal to primarily their constituents  …unfortunately like government assistance programs, artificially changing wages creates more problems than solving them.

First of all, a $10 or whatever minimum wage doesn’t work nationally. The cost of living in one area of the country is not comparable to costs in other areas. Wages seek a level based on the availability of workers … supply and demand Economics … but I’ll concede that “forcing minimums” is the option that is left for Democrats due to the Obama administrations failed economic policies. A laser focused recovery based on job creation would have been far better policy than one that continues to increase business cost in the U.S.

The minimum raise is still a small issue in the big picture, but raising it does not encourage more jobs. No, it will reduce hiring and increase costs for small businesses that rely on inexpensive labor. The options are to raise prices, reduce labor or shutter a business … none are great for the U.S. economy. Let’s say employers with payroll increase are able to raise their price and continue to operate profitably – if so, who pays for the items being made or served by minimum wage workers. Often its fast food or services purchase by the same workers stuck at minimum wage … or those who were slightly above minimum wage and now find their wages back at the new minimum while prices rise. Then there are those on fixed incomes … how do they pay higher prices? What’s next … increases in Social Security and government assistance benefits due to higher prices? Who really wins?

Again … market forces need to set the wages … not the bureaucrats. Make the U.S. the most attractive place to innovate, locate and manufacture and we’ll see job creation and wages rise. Look to history and how this country became the envy of the world.

  1. Corporate Tax reform – at least in line with other countries
  2. Reduced governmental red tape – small business is hamstrung
  3. Ease regulations from EPA and mandatory health care laws
  4. Educate with more attention to vocation
  5. Encourage work and discourage long-term entitlements

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  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
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