Minimum Wage - Here we go again.

When I graduated from High School I worked for a farmer for $150/mo.   I worked 18 hrs/day as he milked 150 cows, in 1966.     I got jobs in college from everything from washing dishes to parking cars. I was glad to have a job.   If I wanted a higher paying job, I just figured I’d have to improve my skills to be worth more.   Free markets determined value and people with a work ethic had to prove their value.

A young girl asked me to sign a petition on increasing the minimum wage for high school and grade school kids.   I asked her.   “Is someone paying you to distribute this petition?”   She said, “Yes.”   I asked, “And how much are they paying you?” She said, “Minimum wage.”   I said, “What hypocricy!” “People have hired you telling you that you’re worth much more than minimum wage, but they won’t pay you more.” In addition, you are saying you are worth much more, but yet, you’re willing to work for minimum wage.”   I said, “Tell me, if you demanded $10.00/hr simply because the government says you’re worth it,   and a restaurant couldn’t afford to hire you, how much would you be making?”   She said, “Nothing!”   So the question is, “Would you rather make $7.50/hr or nothing?”   The right to contract to work for what an employee is willing to work for is called free enterprise.   Why did Burger King and many other companies move out of the country?   It all comes to costs, and taxes and profits.

If money somehow comes out of thin air,   why not require $20/hr or $50/hr and everyone would be economically secure?   Obviously the problem is all these greedy employers, you know, the ones taking the risk to create jobs, who try to make a meager profit selling a product or service,   are taking advantage of all those poor kids who have never worked.   They’re simply worth a high wage just because they are them.  Karl Marx thought all employers were greedy exploiters of the people, and his “divide the wealth” philosophy costs the lives of over 100 million people.    Well here are the facts.   Increasing minimum wages costs jobs. That’s undeniable. Employers have three options:   Don’t give a raise to dependable employees who have been loyal to the company,   Increase the price of their products and services,   or simply don’t hire what you can’t afford.   In the restaurant business for instance employee salaries is 39% of total income.   Their profit margin is often 2-5%   That means 98 cents of every dollar received goes to the cost of running the business.   If minimum wage is increased 20% with a built in increase every year, it means many restaurants and other companies with small profit margins are no longer in business.     There are only 6 million small businesses in America and 2/3rds of them have 1-4 employees. They create 80% of the jobs in America. The very people minimum wage is designed to help are hurt the most.   But since there are more employees than employers, and most people are not risk takers, and don’t understand economics 101, it’s always a lot easier to simply vote for a raise rather than earn it.   NOW ALL WE HAVE TO DO IS PASS A LAW IN REFERENCE TO MINIMUM EFFORT.