Wednesday, November 08, 2006

Minimum wage question

To those who voted for the minimum wage, I have a question for you.

Would you have voted yes to an increase to $7.50/hr?

How about $10.00/hr?

What about $22.50/hr?

In my mind, to vote for a minimum wage increase is to suggest you know how much an employer should pay it's workers for a particular job. Specifically, a job that requires little to no job skills.

So where do you draw the line?

I'll bet there isn't one person who voted for the increase who pays that wage to a babysitter, lawn mower, gardener, etc. along with the employment taxes related to the pay.

Unfortunately, too many people think companies have this big pot of money available to pay people. That money would either go to the managers or the poor working guy, but that's not how companies operate.

The cold hard fact is; every job pays "x". The "x" is determined by the law of supply and demand. The larger the pool of potential employees, the less the job pays. In a global economy, why would a manufacturer pay "x + $5.00/hr" when they can farm out the job to China where someone will do it for "x"

Every time a government passes some bill that increases the cost of doing business in the city/state/country, they encourage more business to find labor elsewhere.

If you look at a current map of the US and look at which states are growing the fastest, you will see the following. Fewer unions, no minimum wage laws & fewer employment regulations.

If you think it looks different I will leave you with this question; Why hasn't one foreign auto maker moved into Michigan where there is a huuuuuuge surplus of workers available from the old Big Three automakers?

I'm just bummed that a bunch voters thinking they are helping the little guy just voted to do the opposite.

No comments: