Minimum Wage ... Maximum Penalty

It is important to help the general public realize how policies our legislators forward affect them. One of the issues being considered is the minimum wage that employers are required to pay employees. Should we support those that suggest the minimum wage should be raised, and should it be indexed to inflation? Would the general public benefit mandates that force employers to compensate their employees a higher starting wage? How will this affect the economy?

Obviously, from my subtitle, you realize I believe raising the wage is detrimental to those in need. Raising wages might seem to be intuitively beneficial, but it belies the reality of economy. Further, I am appalled that we lack the leadership, and journalism, that would exact the truth.

If we simply look at local economies, we realize that the price of goods is subject to supply and demand, but it also includes the consumer agreeing to the value. Absent the intrusion of government, product cost is what the consumer is willing to pay. Fundamental economics will make a correction when companies try to exact an unfair price, because consumers will refuse to engage them, and other investors will realize opportunity. Perhaps a better way, a less sophisticated way, to explain this is to invert the argument. If we instead allowed, or supported, legislation that said eggs MUST cost $5.00 a dozen, because it sounds like a ”fair” amount, it doesn’t follow that people will buy the eggs.

That is one aspect, lets consider another. Mechanisms have a cost, and at a time they are not worth the investment because the cost to do the same thing without the mechanics is more affordable. If we artificially increase the cost of labor the mechanics become more affordable. Labor is reduced.

Additionally, most of the focus seems to be addressing those markets that are intimate. They must be done by locals. What is overlooked is that the majority of labor, and our economy is not intimate. It can be performed anywhere ... even outside our borders.

The reality of this action ... minimum wage law ... is that we have reduced labor opportunity over the years, and we have provided other Nations to be more competitive as a result.

I‘ve only opened the dialogue - but we should engage a reasonable discussion ... the needy depend on leadership and wisdom to help them decide what they should support ... absent a true examination, they will find the temporary increase is a long term detriment.

One other issue to be recognized is that some are not interested in working very hard, but they are interested in doing some things that won’t require a lot of effort or responsibility. They might be Senior citizens, as an example. They aren’t allowed to accept lower wages with these mandates, and they aren’t interested in working hard enough to earn the higher wage ... so ... well ... I guess we don’t care about them, either.