Well, it happened--minimum wage went up...again, at least for 18 states in our fair union. Unfortunately, my state, Ohio, is one such state. For many this is a time of jubilation as they celebrate the instantaneous raise that they did nothing whatsoever to earn, but for those of us who have brains that are even remotely economically-inclined, we know that the minimum wage going up is not a good thing. For those of you who don't generally think about economics, here's why Uncle Sam (or, in this case, Uncle Sam's little brothers) raising the minimum wage is not a good thing:
1) It's a sign of the decline of our dollar. We can argue over whether or not it's good for the economy to raise the minimum wage, but one thing is clear: it's not a sign of a thriving dollar. Raising the minimum wage is the logical result of inflating the dollar, so, once again, the problem we're trying to fix is of our own making. Many economists seem to think some inflation is a good idea, but the fact that you have to continue raising minimum wage to maintain a "living wage" should pretty much tell you that inflating your currency is not a great idea for the long-term viability of your economy.
2) It's not the government's job to guarantee you a living wage. Speaking of a living wage, why is the government in the business of guaranteeing you a living wage? Are we really going to try and interpret the "general welfare" bit of the Constitution to mean that the government, whether local or federal, was created to guarantee that every constituent has a job that provides a living wage? That, my friends, is socialism. That ain't what made America great, amiright?!
3) It's not your employer's job to guarantee you a living wage. You ever had two jobs? I have. It's fun, if you're into cold meals and endless exhaustion. Your employer is obligated to pay you whatever he has promised to pay you. That's it. An employer who wants decent employees will pay them enough to keep them satisfied. A smart employer will pay his employees at least the median pay for the services they render him. If he wants loyal, hardworking employees, he is free to motivate them by offering more than that. No one has to work for another person, and, conversely, no business owner should have to employ someone or compensate them beyond what he desires.
4) Everybody else gets a pay cut. Economics, people. It's really not that difficult to grasp. If you require McDonald's to pay their people more, they will charge their customers more (or fire people). Companies are not going to stop making a profit, nor should they, since businesses that don't make a profit can't hire new employees or compensate existing employees well. When the government forces Starbucks to pay your barista $.15 more an hour, they are taking that directly out of your pocket. Don't believe me? Go order a small Frosty at Wendy's and tell me I'm wrong. It's a rip-off, but I don't blame Wendy's. As I stew over my micro Frosty, I curse inflation and the minimum wage, not Dave Thomas (may he rest in peace).
5) Not everyone needs a living wage. Some people would work for less than a living wage. Teenagers are the clear example of this. Now, there are a variety of laws in the U.S. regarding minors, but the principle still applies--for those who would be willing to work for less, the minimum wage eliminates the opportunity to work altogether. There are plenty of people who are looking for a second job or income to supplement their retirement that can't find it because companies can't afford them to pay them the minimum wage to do menial jobs. Others who own their homes or whose housing is otherwise provided might only work for spending money. The minimum wage inhibits companies from hiring these outliers.
6) A living wage is relative. How many times have you seen a "poor" person who just dropped $100 on a new haircut or a new pair of shoes? I'm just sayin'. What you can live on is different from what you are willing to live on. The American economy is basically built on frivolous purchases, so we really have no idea what a living wage really means. Instead of demanding that the government ensures the right to a living wage, maybe people should live within their means or get a second job. The idea that everyone, regardless of their experience or skill-set, should be able to earn a living wage in 40 hours a week, while refusing to spend money thriftily, is economic madness.
That's just a couple of reasons I'm not celebrating the new minimum wage in my state. Economics can get pretty complex, but some aspects of it are relatively common-sensical. If the recent government shutdown was any indication, that might be exactly why our public officials can't figure it out.
1) It's a sign of the decline of our dollar. We can argue over whether or not it's good for the economy to raise the minimum wage, but one thing is clear: it's not a sign of a thriving dollar. Raising the minimum wage is the logical result of inflating the dollar, so, once again, the problem we're trying to fix is of our own making. Many economists seem to think some inflation is a good idea, but the fact that you have to continue raising minimum wage to maintain a "living wage" should pretty much tell you that inflating your currency is not a great idea for the long-term viability of your economy.
2) It's not the government's job to guarantee you a living wage. Speaking of a living wage, why is the government in the business of guaranteeing you a living wage? Are we really going to try and interpret the "general welfare" bit of the Constitution to mean that the government, whether local or federal, was created to guarantee that every constituent has a job that provides a living wage? That, my friends, is socialism. That ain't what made America great, amiright?!
3) It's not your employer's job to guarantee you a living wage. You ever had two jobs? I have. It's fun, if you're into cold meals and endless exhaustion. Your employer is obligated to pay you whatever he has promised to pay you. That's it. An employer who wants decent employees will pay them enough to keep them satisfied. A smart employer will pay his employees at least the median pay for the services they render him. If he wants loyal, hardworking employees, he is free to motivate them by offering more than that. No one has to work for another person, and, conversely, no business owner should have to employ someone or compensate them beyond what he desires.
4) Everybody else gets a pay cut. Economics, people. It's really not that difficult to grasp. If you require McDonald's to pay their people more, they will charge their customers more (or fire people). Companies are not going to stop making a profit, nor should they, since businesses that don't make a profit can't hire new employees or compensate existing employees well. When the government forces Starbucks to pay your barista $.15 more an hour, they are taking that directly out of your pocket. Don't believe me? Go order a small Frosty at Wendy's and tell me I'm wrong. It's a rip-off, but I don't blame Wendy's. As I stew over my micro Frosty, I curse inflation and the minimum wage, not Dave Thomas (may he rest in peace).
5) Not everyone needs a living wage. Some people would work for less than a living wage. Teenagers are the clear example of this. Now, there are a variety of laws in the U.S. regarding minors, but the principle still applies--for those who would be willing to work for less, the minimum wage eliminates the opportunity to work altogether. There are plenty of people who are looking for a second job or income to supplement their retirement that can't find it because companies can't afford them to pay them the minimum wage to do menial jobs. Others who own their homes or whose housing is otherwise provided might only work for spending money. The minimum wage inhibits companies from hiring these outliers.
6) A living wage is relative. How many times have you seen a "poor" person who just dropped $100 on a new haircut or a new pair of shoes? I'm just sayin'. What you can live on is different from what you are willing to live on. The American economy is basically built on frivolous purchases, so we really have no idea what a living wage really means. Instead of demanding that the government ensures the right to a living wage, maybe people should live within their means or get a second job. The idea that everyone, regardless of their experience or skill-set, should be able to earn a living wage in 40 hours a week, while refusing to spend money thriftily, is economic madness.
That's just a couple of reasons I'm not celebrating the new minimum wage in my state. Economics can get pretty complex, but some aspects of it are relatively common-sensical. If the recent government shutdown was any indication, that might be exactly why our public officials can't figure it out.
Comments
Post a Comment