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MINIMUM WAGE AND INFLATION

Earning a living wage is important. Seems to me the only people whining about people earning a living wage are the people that neither need or have ever made so low an income. If these rich crybabies want to pay their help more, why do they need the government to tell them they must? Raising the minimum wage is a bad idea. Always has been.

The Democratic leaders want to raise the minimum wage to $10.10 an hour. Fine. Why stop there? When I was a child the wage was $1.60 an hour. You could go down to the Burger Chef and have burger ,fries and a drink for about $.75 . For less then $30 you could buy enough groceries to feed a family of 4 for a week or better. Then in ‘74 the wage went to $2.00. That burger meal went up to $1.50. Groceries for that family went up to around $50 . In ‘09 it went to $7.25 and we have that same burger meal at $4.50 to $6 . You can’t leave a grocery store for less than $200. A value meal that cost me a dollar in ‘75 now cost me 6 dollars today. A motel room was $8 a night ,now costs over $50 dollars. Labor rates at your local car dealership was $15 an hour. Now same labor rates are $75 – $100 an hour .

A living wage? When has minimum wage ever helped the economy? When has minimum wage ever meant to be a living wage? Raising the non experienced labor rates will only aggravate inflation. We will end up paying over $10 for a burger and fries to cover the increased overhead these fast food restaurants will have to pay the untrained labor. Seeing how increasing the minimum wage only increases prices everywhere else, how will it help when the extra money earned will only have to be spent to cover the higher prices that will result?

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2 Comments

  1. A more to home example , for my skill set ,I would have to earn 35 to 40 dollars an hour in comparison to the current inflationary rates. Problem is , in my field of expertise and where I live, the money is just not there. The best I could hope for is $20 an hour. With the move to make the minimum wage at $10 I would feel be taking a real pay cut by no making $30. Employers can’t pay what they can’t recoup.

  2. From “Economics in One Lesson” by Henry Hazlitt:

    Thinking has become so emotional and so politically biased on the subject of wages that in most discussions of them the plainest principles are ignored. People who would be among the first to deny that prosperity could be brought about by artificially boosting prices, people who would be among the first to point out that minimum price laws might be most harmful to the very industries they were designed to help, will nevertheless advocate minimum wage laws, and denounce opponents of them, without misgivings.

    The first thing that happens, for example, when a law is passed that no one shall be paid less than $9.00 per hour [updated) is that no one who is not worth $9 per hour to an employer will be employed at all. You cannot make a man worth a given amount by making it illegal for anyone to offer him anything less. You merely deprive him of the right to earn the amount that his abilities and situation would permit him to earn, while you deprive the community even of the moderate services that he is capable of rendering. In brief, for a low wage you substitute unemployment. You do harm all around, with no comparable compensation.

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