Insanity!Legislating economic matters like minimum wage is silly to
start with. But, when done by a state legislature that has conclusively proven
they haven't a clue about even the most basic idea of spending within your
budget it is positively absurd.The entire California economy and the
government which controls much of it will collapse soon enough. Trying to
"fix" the private sector is the last thing they should do.But, if $10.50 an hour would help, why not make the minimum wage $50.00 per
hour, or to keep up with lawyers, make it $500 per hour?
Insanity indeed !!The Federal Minimum Wage has not kept pace with
the CPI for a long time. The true miniimum wage from, lets say the 1960s
adjusted for inflation should be about 16 dollars per hour. This information is
readily available on US Dept of Labor websites. Being that this is
Conference Weekend. Please remember the scripture. "Inasmuch as you do it
unto the least of them. you do it onto ME" . Here the "them" are
flipping Hamburgers and making Hotel beds. Not that these is anything wrong
about flipping burgers or making beds.
The minimum wage will never keep up with cost push inflation initiated by the
federal reserve. Everytime they drop rates down to boost inflation to their 2%
target the people in the lower and middle class get killed. The problem is not
the minimum wage its the Federal reserve.
Every time minimum wage rises, the purchasing power of that minimum wage
actually goes down due to inflation.Think about that for a second.
If you're making minimum wage and your wage goes up, your purchasing power
decreases.Politicians have forgotten what really matters here:
It's not how much money you make, it's what you can buy with that
money. And every time minimum wage rises, what you can buy with it becomes less
Australia did this and guess what? You still can't live on the minimum
wage. I should know, I live here as an American. Increasing the minimum wage
brings with it a corresponding increase in housing, transportation and food. It
simply doesn't work.
Here is a good example that shows more $ doesn't always solve a problem.
1960s the student funding programs kicked in. We Increased the amount of money
a college student has with the Federal Pell grant program and guess what... the
colleges adjust slowly but surely and tuition sky rockets. When
the students should have been saying..." Hold on.. I can't afford
this." and the colleges would have adjusted as they saw their populations
dropped. The colleges would have tightened their belts and cut bad programs
etc, the students were instead saying "oh... no big deal, I've got this
grant or I've got this loan. What's another $25 a credit hour? "
Give people more money they will spent it and get suckered out of
most of it. It's bad decisions that lead to losing money. The
landlords, the food producers, etc everyone will bump it up a little. Milk is
25 cents more. No big deal. I've got $200 more this month than last.
Rent is $50 more. Ouch, but I've got it covered. Before they would have
moved and the landlords would have gone back to the original price. Mainly
Me is right on.
Implementing and then raising the minimum wage definitely hurts the poorest
citizens in the economy by making goods and services more expensive for them to
purchase, as has been pointed out. However, that isn't the worst thing
about the horrible policy. Minimum wage reduces employment among the poorest,
least skilled workers. This proves that Californian legislators are either
ignorant of basic economics or have absolutely no regard for the least skilled
individuals in their economy. Then again, we as a country do it, so I can't
really make fun of Californians too much. In fact, why not raise the federal
minimum wage to $9 or $10/hour, since we already have a minimum wage to begin
with. Better yet, let's one up them. The sky's the limit right? Why
not do $20/hour? Why stop at $20? I'm sure the argument could be made that
even $20/hour isn't a 'fair' wage either. Better do $30/hour.
Better yet, do $40/hour.