In 2007, congress approved the Fair Minimum Wage Act of 2007 that raised the hourly minimum wage from $5.15 to $7.25. The voters of 2006 showed strong support for minimum wage increases, prior to the enactment of HR2206, by passing state laws with higher minimum wages standards..
These recent votes imply that people are compassionate (♥)towards others. However, such good intentions may make voters feel better, but the lowest wage earners will likely find their living standard and self-esteem reduced.
Minimum Wage Decision
Minimum wage quantifies the minimum useful value of work. Tasks that require less than the minimum useful value of work are not worth doing. In addition, people not capable of performing the minimum useful value of work are deemed incapable of adding to the economic value of society.
The voter's task (as opposed to the consumer's or worker's tasks) is to determine who is allowed to participate in society's economic opportunities.
Barrier to Entry
Barrier to entry is an important tool business tool. Barriers set the threshold for participating in a market. Minimum wage sets a barrier for entry into employee work force. Minimum wage discriminates against workers without experience and helps guarantee a permanent underclass. Dependence on public welfare does not help the individual.
Without the opportunity to acquire skills, potential worker lack the experience to acquire ever higher paying jobs.
The Political Side of Minimal Wage
Within the US, minimum wage establishes the competitive foundation for doing business. States with higher labor rates stand the risk of losing business to lower cost states. Minimum wage can be used as a political tool for politicians to make lower cost states less competitive.
Minimum wage permits political social engineering which favors high cost regions.
Minimum Wage At the Extremes
If a minimum wage is intended to make sure that everyone can enjoy a decent life, why is minimum wage so low? Why not $40/hour? Why not $200/hour? Why can't everyone have the wages of a professional athlete or CEO? The only voter who should vote against such a minimum wage is the one person with the high salary. The masses (in support of political votes) could create a single employee pay scale.
Such approach would most certainly result in complete corporate unemployment. Every productive person with initiative to start a business would start their own business without employees. Without large corporate lobbies and money, politicians would lose all political power. Welfare and entitlements would need to be replaced by individual charity.
On the other hand, without a minimum wage, employees can determine how much to charge and whether they need to develop skills offering higher paying opportunities.
Elimination of minimum wage laws does not provide any disadvantage to the consumer or employee.
♥ Show real compassion for those dealt a bad set of cards. Sometimes the moral decision is not the comfortable decision. Support the right for everyone to work and seek their dreams.
