Published: Wednesday, Sept. 4 2013 12:00 a.m. MDT
Minimum wage laws are well-intentioned but destructive. When government
meddles in economic matters, this distorts healthy economic forces and usually
creates worse problems. Such is the case with minimum wage laws. They sound
good, but end up putting many people out of work, because businesses have to
raise prices, hire fewer workers, or close the business.Entry-level
jobs are a springboard of opportunity to higher-paying jobs. But minimum wage
laws mean FEWER jobs, thereby DESTROYING that springboard for many unskilled
workers who are trying to get a job.Another silent effect of
artificially raising wages by mandate is that it also raises PRICES all around.
So the resulting inflation means that the promised “greater purchasing
power” is a cruel hoax.Promoting minimum wage hikes makes
people feel good and compassionate, especially if they ignore the principles of
economics. But in reality these mandated wage hikes do a lot of damage to a lot
of people, and to the economy in general, while making little true long-term
In reality "minimum wage" has nothing to do with fairness. It is merely
an attempt to give the perception that workers will be paid fairly. The
real problem is still the same as it has been for centuries. That problem is the
"Greed" of certain people and the "Sloth" of other people. While
it is true that many people will work hard and many employers will treat their
workers fairly and with respect we still have a percentage in both groups who
won't do either of these things. And when you triple the population
in a short period of time the situation becomes more visible.
Fairness? The government can not make anything in life "fair". No two
people have the same abilities, intelligence, creativity, drive and work ethic.
The government can not give one person something that it doesn't first have
to take away from another person by force. What's fair is getting what you
actually work for, rewarded for your creativity, paid for the value your produce
and the market place is much more fair than any incompetent, meddling
bureaucracy could ever be. Detroit is a good example of government trying to
enforce what they think is "fairness". Fairness from liberals is code
for more entitlements!
Who would be most harmed by an increase in the minimum wage? Wouldn't it
be those who are paid minimum wage? A business MUST pass along all costs or
that business will not survive. If McDonalds must pay $2 or $3 more per hour,
they will increase the cost of their meals. Who buys those meals? It's
not the "rich guy". It's the minimum wage earner. Gas stations
will be forced to pass along the wage increase. Grocery stores will have to
increase their prices. Wal-Mart, and other "discount" stores will have
to increase their prices. Who will be hit hardest by those price
increases, the minimum wage earner or the "rich guy"?Government has no business interferring with "minimum wage".
Government does not own the businesses. Government is not at risk in those
businesses. The principle purpose of the Federal Government is to protect the
United States against enemies. Personal welfare is NOT a duty of the Federal
Government.Incentive comes in many forms. If a minimum wage earner
wants to earn more money, the most certain way to do that is to increase his
skills. It works everytime it's tried.
I agree. McDonalds et al should be required to pay $20.00 per hour. That way the
public can pay $10.00 for a Big Mac.How would that work for you Mr. Davis.
Didn't John F. Kennedy say life is not fair? Thing is raising minimum wage
raises inflation. Since prices have to be raised to cover anyway. As for try
living on minimum wage are you saying you can't live on a higher wage
without government help? What would happen if minimum wage went away all
together.Way to raise your own minimum wage better education and
skills. I wonder if he had to sign a payroll? Since the only way a business
owner can make minimum wage is if after the many costs of the business enough
people support his product or service to make the money for him. I guess if a
business owner does not get minimum wage than government can give it to him like
they do his employees.
I think we should lower it so the conservatives can complain even more about
food stamp usage increasing, while their overlords set new records for
Labor, especially unskilled or low-skill labor, is a commodity. Anyone who
thinks otherwise is fooling themselves.“According to the
Economic Policy Institute survey, only 21 percent of low wage workers lack a
high school education, and over 40 percent have been to college. Most likely
these are individuals who were laid off during the recession or were unable to
find a job except for one working at a low wage.”So business
owners need to pay the penalty for BO’s mishandling of the economy?
What’s fair about that?What’s fair about forcing an
employer to pay $9/hour for labor that is only worth $5/hour? The employer
won’t do it, and we will have even more unemployed.
@Happy Valley HereticOrem, UTI think we should lower it so the
conservatives can complain even more about food stamp usage increasing, while
their overlords set new records for profits...earned?8:14 a.m. Sept. 4,
2013======== Agreed.NO minimum wage.and Let people starve!Who cares about people, while
WallStreet Money Changers are making RECORD setting profits never before seen in
history?Because that worked oh so well in France.Face
it, Conservative won't be happy until America becomes Somalia.
Blaming everything on greedy republican "overlords" may feel good, but
it paints a very distorted picture not supported by the facts.First,
the largest job-creating sector in the country is SMALL BUSINESS, not large
corporations. So the idea of a few greedy Wall Street tycoons running the
entire economic picture in this country is absurd and impossible. Even
McDonald's, although it has a central corporate mechanism, is primarily a
franchise business. Local franchisees pay a set fee, then set (mostly) their
own prices.Second, over the last several years, we've been
upside down in job creation. The normal trend is for new full-time jobs to
outnumber new part-time jobs by 2-1 to 4-1. Currently, the ratio is backwards
at about 1 full-time job for every 4.5 part-time jobs created. Very few
companies are going to pay much more than minimum wage for part-time workers.Minimum wage was initially intended, at least partly, to keep workers
from being exploited during the Great Depression. $7.25 an hour isn't
Lost in DC:Actually, all labor is a commodity. Even students in MBA
programs are taught to market themselves well. They are products that the
corporate system purchases.Corporations have a dual pay system. They
pay one group (the owners and a select few executives) as much as possible. They
pay the other group as little as possible. Not until this system is understood
for what it is will we have any kind of economic democracy in this country. We
will be saddled instead with a form of corporate feudalism that has very subtly
turned capitalism into the very thing it was designed to destroy: aristocracy.
"There is one rule for the industrialist and that is: Make the best quality
of goods possible at the lowest cost possible, paying the highest wages
possible."- Henry Ford
Let's see, 88 percent of the low-wage workers are over age 20, and most of
them work full-time. Thanks for this information, Richard. It sure isn't
what we've been told by people who oppose a minimum-wage increase.And thanks, Kent C. DeForrest, for the comment on corporate feudalism. The
minimum wage is just one of many tools needed to keep greedy corporations from
Define "Fair".We always run into problems when somebody
tries to decide what's "Fair" for everybody else (especially when
you put a politician in charge of deciding what's "Fair").In a "Fair" and perfect world we would all earn the same, because we
would all be equally talented, and equally skilled, and equally educated, and
equally motivated. But we all know that world doesn't exist. Trying to legislate that the world be "Fair" rarely works. That said... there needs to be a minimum of what an employer can pay.
Otherwise many jobs would only go to illegal aliens willing to work for way less
than the minimum and qualified American citizens would sit unemployed... oh
wait... that's what we already have.
As if minimum wage is going to lift anyone out of poverty? Minimum wage laws is
a subterfuge, a trick, a patronizing wink to the business community by Democrats
and Republicans. Minimum wage laws destroy initiative and keep the government
and business in a cozy protective relationship that insures their profits at the
expense of the poor and industrious. It is not only an affront to liberty and
free enterprise, but insures the long term survival of the business that
supposedly is interested in its employees, rather than profit. Any businessman
worth his salt would be interested in rewarding excellence, not mediocrity.
Excellence is rewarded with financial incentives, something that minimum wage
laws make almost impossible! How is it possible that people can't see
things for what they are? Money rules this world and minimum wage laws insure
that those who have it will continue hoarding it!
Kent,thank you for confirming labor is a commodity.I
would agree, to some extent, with your comment about the dual pay system.
Owners should be paid as much as possible, but not execs.Corporations have a fiduciary duty to their shareholders to return as much as
possible to those shareholders, so yes, they DO pay the owners as much as
possible (while still retaining enough to capitalize and otherwise fund the
business). They are obligated to the shareholders to pay as little
as possible for ANY other cost of doing business, including labor - including
executives. Executive talent requires a premium, and the directors should not
pay execs more than they are worth. Do directors fail in this responsiblity?
yes, often they significantly overpay execs, but that is no excuse for
overpaying common labor.Want more pay, make you labor worth more.
That plain and simpleLDS?lib,face it, liberals won't be
happpy until they turn the US into the USSR.
IMO if the Government is going to get into the "Fairness" game, and
legislate "Fair" minimum wages... they also need to have a legislated
cap on earnings (not just a minimum). That way all those football players,
Kobe Bryant, movie starts, rock stars, and CEOs earning $70Mil can only keep say
$1Mill and we can give the rest of their salary to the poor!Probably
not going to fly is it? You can only take this legislating "Fairness"
business so far before somebody complains and it breaks down.Legislating "Fairness" is like trying to legislate "Morality".
It doesn't work. Because everybody doesn't agree on what's
"Fair" (so everybody complains that your "Fairness" legislation
is not fair to them). Just as everybody doesn't agree on what's
"Moral" (so they complain that your morality legislation doesn't
fit their morals).Both sides get into trouble when they try to
legislate THEIR idea of "Good"ness (especially on a National level).
How long will it take the minimum wage raising proponents to realize that they
shouldn't be using a 40 hour work week to calculate how the minimum wage
could life a person out of poverty? I think I just read that 80% of the jobs
cited in the latest jobs report are part-time, capped by employers at 29 hours
due to Obamacare penalties...
To those of you who want the minimum wage changed as a matter of
"fairness", how are you going to define what is "fair"?You should find the parenting article titled “That’s not
Fair”. It used to be on MSN, but is available at other websites now too.
You sound just like the kids they describe. The author says "Whose kids
haven’t at one point hollered, “That’s not FAIR!” when
they felt cheated out of their supposed share of something?" That sounds
like you and others like you.They go on by stating "Early on,
fairness is typically defined in one of two ways: with everyone getting exactly
the same thing, or the child getting everything he or she wants....Fairness is a
perception about what is deserved or agreed upon,” Rode says. “It is
sometimes very unfair to make things equal.”"If you bother
to read the entire article, you find that fairness is arbitrary, and is a
childish attitude. Why base minimum wage on an attibute of a 5 year old?
for all you Ayn Rand wannabes... the minimum wage and all federal labor rules
for that matter came about due to stupid, lazy, shortsighted, ridiculous,
cowardly, foolish actions by employers back in the day... now certain industries
and corporations are repeating those same ways and they will reap what they
sow... government regulation!
DeseretNews.com encourages a civil dialogue among its readers. We welcome your thoughtful comments.— About comments