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Wednesday, January 10, 2007

Working Ten Years For Minimum Wage

WASHINGTON - The Democratic-controlled House voted Wednesday to increase the federal minimum wage to $7.25 an hour, bringing America's lowest-paid workers a crucial step closer to their first raise in a decade.
If there is anyone out there who has not had a raise in ten years they probably do not deserve one. Does anyone work a minimum wage job for ten years? If so, why? It must be because they want to, they have no ambition, or they have not developed any marketable skills.
Government's role is not to determine salaries for the working class. The free market is to do that, supply and demand. No one really knows what the wage would be in some of these minimum wage jobs if the market was allowed to determine the price. What we do know is that government intervention through minimum wage legislation has removed the competitive aspect to this segment of the labor market.
People like to think this is a good thing because they will have to pay me at least $7.25 an hour but they never consider that is all they have to pay them as well. It removes any competition that might tend to move the wage higher.
It is really nothing more than throwing pennies at the poor. Can anyone live on $7.25 an hour much less support a family?
And who pays the extra wage. The people who pay for every burden government places on business. The consumer. Do you think this increase is going to come out of the pocket of employers, if so you do not understand basic economics. The government is extracting it from business and business extracts it from the consumer.
When minimum wage goes up we will all pay the price.
It would be nice if the President would dust off the veto pen for this piece of legislation, but I believe he is expected to sign it in the spirit of compromise and bipartisanship!
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