Tuesday, July 23, 2019
Today we will address the Minimum wage. Folks, with all the fuss by radical Dems to raise the minimum wage let’s talk about some actual facts. I see a lot of misinformation propagated by the LEFT, out there. Here is some context for one state, PA. Dem proponents are complaining about all these families affected by it, First fact: Those earning minimum wage in PA represent about 2.5 % of total employment a very small amount, and FACT 2: 80% of those earning minimum wage have no children. So now we are down to a number less than 1 % of total employment. Dems contend you can’t raise a family on minimum wage. Of course it was never intended to. Most of those jobs are low skilled or introductory positions intended for young people or workers looking for second employment. In Addition, Fact 3: almost 70% of those on minimum wage work part-time. Then we have the assertion that min wage earners are all low income that need help. Fact 4: 17% come from household incomes of over $100,000, and nearly 30% from households over $75,000, only 34% come from households under $30,000. So again we are talking about a very small number and we have many welfare programs like SNAP that when utilized boost their income well over a living wage, in some cases to as much as $50,000. Raising the Min wage would help thousands of workers in demographics that do not need the help of the rest of us. Another important point, reginal differences. $15 an hour is different in NYC than North Dakota. It does not make sense to force one standard on the entire country. Raising the minimum wage hurts small business as Bernie (economic ignoramus) Sanders found out recently with his own campaign team when after a call to pay them $15 he was forced to reduce hours. Let me provide another example, a wonderful young business woman in my area started a dog grooming business and has now expanded to three locations. She employs over two dozen, mostly young people, that can make over $40,000 per year if they hustle. Their base wage is less than $15 but far higher than minimum. If forced to raise the minimum wage to $15 she will have to let go many of her employees and raise prices which could reduce her gross intake possibly even forcing closure of one of her locations. There is no reason for government to interfere in anyone’s business, in fact there is sound reason NOT to. Raising the minimum wage has a ripple effect on other employees in the business. Recently, An IHOP manager explained how he would have to cut hours and automate to cover employees he would lose. “Fifteen dollars at the busboy level means considerably more at the cook, and head cook level.” Not only does this policy harm workers but it contributes to inflation which has been mostly held at bay. There is another dirty secret why Dems are pushing this issue. Many wage contracts for skilled workers are tied to the minimum wage. So if the min wage rises so does the wages of a plethora of jobs already earing much much higher wages. Raising the minimum wage is a bad idea. The market works well when left to itself in this regard. Some companies already choose to pay much higher than the minimum already and that is fine but government using the force of law to set wages is a counterproductive policy that actually hurts far too many of the people they propose to help. It is clear many law makers do not understand basic economics and rank among some of the most misinformed people in authority. For others this is clearly an arbitrary political decision under the guise of wanting to help people while playing to the emotions of those thinking they will receive free money. Let's let the free market determine wages in the private sector.