Minimum Wage

People like to suggest that raising the minimum wage is in response to inflation.  I would suggest that raising the minimum wage causes inflation.

If a gallon of milk cost one dollar ten years ago, and today a gallon of milk costs four dollars we recognize that the gallon of milk has not changed.  Rather, we look at it as inflation and consider it to be a bad thing.

When minimum wage changes, the product itself, a basic hour of low-skill work hasn’t changed.  The cost has been inflated.

Another way of looking at it is to say that what two dollars used to purchase, now requires seven dollars to purchase.  The thing being purchased hasn’t changed.  The value of the dollar, what the dollar will buy, has changed.

When we increase the minimum wage, we devalue the dollar.

I am not an economist and I am not going to go back over the last fifty years and see the precise changes in minimum wage and the effect on the economy.  I have, however, been living through the last fifty years, and in my observation, raising the minimum wage causes economic turmoil.

The minimum wage is meant to be a starting point for employment.  As workers develop skills and demonstrate a solid work ethic, they may be rewarded with higher paying jobs.  New workers entering the job market take their place and the process moves onward.

When the minimum wage is raised it has an affect on what other employees are paid as well.  People often view their pay in relationship to the minimum wage so to keep employees, wages across the board need to go up.  Higher wages means higher operating costs.  These costs are passed on to the consumer, resulting in inflation.

Currently, people who make minimum wage may be eligible for a variety of assistance programs from the government.  These include food stamps, rent assistance, utilities assistance and other programs.  These programs help people to live a better life while making minimum wage. Perhaps we could add an option of financial training.  We should help to teach people how to live on their income, rather than beyond their income.

People should look to better themselves by finding better jobs, not by trying to force employers to pay more for an hour of basic labor.

Raising the minimum wage is a bad idea.

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