Forget which party you pledged allegiance to and start thinking for yourself!
Who does the minimum wage hurt?
1) Our most unskilled workers: Because they are unskilled, employers would have a net loss by employing them at the artificially high wage mandate. The result is unemployment for all workers who productive value falls below the minimum wage. Such low skilled workers could otherwise be employed in the absence of a minimum wage law and gain the work experiences needed to work their way to higher wages. This argument also applies to teenagers looking for their first job.
2) All consumers: Forcing employers to pay more for labor will result in higher costs passed on to consumers. Low income consumers will be hurt most by this.
Who does the minimum wage help?
1) Some lower skilled workers: Simply, they get paid more as minimum wage rises. However, there is a hard-to-quantify benefit as some of the goods and services that these workers consume can also similarly rise as other employers are passing on the cost of higher wages to consumers.
2) Labor Unions: Labor unions often peg their negotiated wage rates to a premium above minimum wage. So as the minimum wage rises, so do many union wages. This not only enriches union workers, but also protects union worker jobs as the barrier for entry into union membership remains at a high spread over the minimum wage.
3) Supporters of minimum wage feel good about themselves: Generally speaking, these are people with good intentions but lack sufficient economic education to see the error of their position.
4) Politicians that feed upon the preceding groups.
How do we help our low skilled work force?
1) Reduce the tax burden: Let workers and employers keep more of their money. Is there any dispute that our tax burden is too high while Congressional spending is out of control?
2) Stop crony capitalism: All the rules have been rigged to benefit big corporations. Tax codes, regulations, licensing, protectionist laws are built to protect those at the top. Congress allows itself to be purchased for the highest bidder. This needs to stop. Ending the two party monopoly might be a good place to start.
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