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Jul24
Who Does Minimum Wage Really Help?

The minimum wage issue always comes around and is used by some politicians as a political football. When it comes down to it, it really doesn't do any good. The only ones it hurts in the end is small businesses, not big business, who will always pay beyond it. That's why you rarely, if ever, hear big business opposing it.

One thing you don't hear much about is the relationship to wages to entry level positions. When you have advocates of the minimum wage saying how children are going hungry and people can't pay their rent because the minimum wage hasn't gone up for 10 years, it can't even begin to be taken seriously.

For example, one minimum wage advocate Thomas Geoghegan said, "Yes, I'm glad it's back up, but it's too late now for all sorts of working poor who couldn't pay the rent, or had to cut back groceries for the kids. It's a disgrace that we let the minimum wage drop, in real terms, for so long."

How many people that enter in the labor market when they're young, stay at that position at the minimum wage level for years? HOw many minimum wage positions are held by college students and single people earning money while they learn?

who%20does%20minimum%20wage%20really%20help.jpg

To imply that people are homeless and children are starving because the minimum wage hasn't been increased can't even be taken seriously.

This is just a ploy to get people to rely on government and get a few votes - nothing else. This type of nonsense shouldn't be even part of the conversation concerning the working poor.

Another big brother advocate, EPI's Liana Fox said "We know there are situations where the free market failed and the low-wage labor market is one of those situations."

To say the free market has failed is about as socialist a statement that can be made. Look at Russia and China as they've adopted free markets, their economies have exploded in growth, along with personal income.

Entry level low-wage positions were never meant to be where workers end up. It's meant to be a temporary starting point where people can develop good working habits and pay expenses while they're learning.

What's stunning about all of this, as Steven Davis, of the Chicago School of Business says, is the "biggest tax paid by low-wage workers is payroll tax not income."

The government takes their money away, and then says let's pay you more because we're taking away so much. That's not a free market failure, that's the what happens when the government steps in and tries to be the answer to everything.

Who does the minimum wage help the most? Certain politicians that stir up emotions based upon half-truths.

The minimum wage will only affect about 10% of the nations workers. When you take out high school workers and college students, how many are really left?

If someone is in a minumum wage job and stays there for years, we have to ask the question if they're taking responsibility for themselves. In the United States especially, there's no reason why someone can't increase their skills, learn a trade, go to college or start a business. Anyone with a little desire and work ethic will go far beyond the minimum wage level.

When it comes down to it, small businesses will have to raise the prices of their products and services when they have to forcibly and artificially raise the wages of their workers. That will even make them less competitive with their larger counterparts, who aren't affected by this at all.
 
The government should just leave its hands off of the free market and let it define what workers are worth. Anybody can move up if they want to with all the job options available. They simply need to increase their worth in the market. Those that do that will never have to think about low or minimum wages.

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2 Comments/Trackbacks




» Who Does Minimum Wage Really Help? from BizzBites.com
The minimum wage issue always comes around and is used by some politicians as a political football. When it comes down to it, it really doesn't do any good. The only ones it hurts in the end is small businesses, not big business, who will always pay wa... [Read More]

» Minimum Wage Increase Spurs Debate At Know More Media from Know More Media
This week, Know More Media writers took differing stabs at the new U.S. minimum wage increase.  Here's a sampling:Minimum Wage Increase News and InformationAt MarketingBlurb, Susan Gunelius lays out the basic facts about the new minimum wage.L... [Read More]

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