Little-Acorn
07-24-2009, 11:50 AM
The Minimum Wage is a concept created by people who think the purpose of companies is to create jobs rather than to earn money. It's hardly a surprise that most of them don't run companies.
Saw a cartoon four or five min-wage-increases ago. It showed a fast-food manager talking to his crew, seven or eight people who are gathered around him. He says:
"I have good news, and I have bad news.
"The good news is, the new minimum-wage law says I have to pay you more.
"The bad news is, I can't afford that, so two of you are fired."
-----------------------
Before minimum-wage laws became popular, you could pull into a gas station, and someone would come out and ask, "Regular or premium?" At the same time, someone else would check your car's oil and water levels, clean the windshield, put air in the tires, etc. Where are they now?
They were killed off by minimum-wage laws.
When they were doing those jobs, it was because the gas station owner had found out that, when they were working there and doing those things, more customers chose his station to buy gasoline. And enough extra customers came in, that he made enough additional profit to pay their (low) wages. So it was economically feasible for him to employ them, contributing to the purpose of the station (to earn money for the owner).
Enter the Minimum Wage. Suddenly the owner had to pay those people $8.00/hr (2008 dollars) instead of the $4.00/hr they had been willing to work for. And just as suddenly, the extra customers they brought in, no longer brought in enough profit to pay the windshield-cleaners' wages. Some raised their prices, but then found their customers started going to the place down the street that hadn't raised prices - those places had just fired the windshield-cleaners instead. Some divided their pumps into full-service and no-service, the full-service pumps having higher gas prices to pay for the extra people who worked only there. But not enough customers used the full-service pump, and the windshield-cleaners mostly sat idle. So before long, they were history. Now, thanks to Minimum-wage laws, extra entry-level workers who used to be worth employing, no longer were, and their jobs vanished.
Gone were their chances of getting bicycle money or bus fare. They now had to wait for a job (much rarer) to open up paying enought to support a car. Gone were their chances of getting an "easy" job that could give them their first experience and their first recommendation from a satisfied employer. Gone were their first chance to start developing a work ethic that would make them more likely to get a better job later.
Yes, Minimum Wage laws help people - the ones they don't fire.
Min Wage laws also help someone else: Unions. Most unions set their wage scales based on - you guessed it - the Minimum Wage. So when the Min Wage goes up, not only do the lowest-paid workers get more money, but the employer is forced to pay more money to his entire hourly-wage staff, including the most highly-paid ones. And since these employees who get more money today than yesterday, aren't bringing in any more profit today than they were yesterday, the fast-food scenario described above, applies.
Inflation is another subject. That's what you have, when the price of everything rises (goods, services, wages alike). When a company is forced to pay some or all of its workers more, while they aren't bringing in any more money than they used to, they have no choice but to raise prices. And they hope their competitors have the same problem and so can't lure their customers away. And the people buying their products find themselves paying more for no more goods, and so must raise their prices to make up. And so, prices rise everywhere, as wages rise. Sound familiar? Inflation has many causes. Minimum-wage increases are among them.
The "living wage" argument is especially ludicrous. Some people actually complain that the reason we need a higher Minimum Wage, is becausae you can't support a family of four on the (older) minimum wage.
Well, who on earth ever said you could? Or should?
This "argument" comes directly from those misguided souls who think companies exist to create jobs, not earn money for their owners. And who think that jobs exist to provide people a living, not to get work done for the company.
If you have a family of four to support, why are you working as a clerk at a stereo store, or picking apricots in an orchard? With no plans to move up to a better-paying job, get training at night school, etc.? Is it your employer's job to support your family? Or is it yours?
So much is wrong with the idea of a mandated Minimum Wage, that it takes more space tham we usually have in a forum like this. But there are a few of the high points.
Saw a cartoon four or five min-wage-increases ago. It showed a fast-food manager talking to his crew, seven or eight people who are gathered around him. He says:
"I have good news, and I have bad news.
"The good news is, the new minimum-wage law says I have to pay you more.
"The bad news is, I can't afford that, so two of you are fired."
-----------------------
Before minimum-wage laws became popular, you could pull into a gas station, and someone would come out and ask, "Regular or premium?" At the same time, someone else would check your car's oil and water levels, clean the windshield, put air in the tires, etc. Where are they now?
They were killed off by minimum-wage laws.
When they were doing those jobs, it was because the gas station owner had found out that, when they were working there and doing those things, more customers chose his station to buy gasoline. And enough extra customers came in, that he made enough additional profit to pay their (low) wages. So it was economically feasible for him to employ them, contributing to the purpose of the station (to earn money for the owner).
Enter the Minimum Wage. Suddenly the owner had to pay those people $8.00/hr (2008 dollars) instead of the $4.00/hr they had been willing to work for. And just as suddenly, the extra customers they brought in, no longer brought in enough profit to pay the windshield-cleaners' wages. Some raised their prices, but then found their customers started going to the place down the street that hadn't raised prices - those places had just fired the windshield-cleaners instead. Some divided their pumps into full-service and no-service, the full-service pumps having higher gas prices to pay for the extra people who worked only there. But not enough customers used the full-service pump, and the windshield-cleaners mostly sat idle. So before long, they were history. Now, thanks to Minimum-wage laws, extra entry-level workers who used to be worth employing, no longer were, and their jobs vanished.
Gone were their chances of getting bicycle money or bus fare. They now had to wait for a job (much rarer) to open up paying enought to support a car. Gone were their chances of getting an "easy" job that could give them their first experience and their first recommendation from a satisfied employer. Gone were their first chance to start developing a work ethic that would make them more likely to get a better job later.
Yes, Minimum Wage laws help people - the ones they don't fire.
Min Wage laws also help someone else: Unions. Most unions set their wage scales based on - you guessed it - the Minimum Wage. So when the Min Wage goes up, not only do the lowest-paid workers get more money, but the employer is forced to pay more money to his entire hourly-wage staff, including the most highly-paid ones. And since these employees who get more money today than yesterday, aren't bringing in any more profit today than they were yesterday, the fast-food scenario described above, applies.
Inflation is another subject. That's what you have, when the price of everything rises (goods, services, wages alike). When a company is forced to pay some or all of its workers more, while they aren't bringing in any more money than they used to, they have no choice but to raise prices. And they hope their competitors have the same problem and so can't lure their customers away. And the people buying their products find themselves paying more for no more goods, and so must raise their prices to make up. And so, prices rise everywhere, as wages rise. Sound familiar? Inflation has many causes. Minimum-wage increases are among them.
The "living wage" argument is especially ludicrous. Some people actually complain that the reason we need a higher Minimum Wage, is becausae you can't support a family of four on the (older) minimum wage.
Well, who on earth ever said you could? Or should?
This "argument" comes directly from those misguided souls who think companies exist to create jobs, not earn money for their owners. And who think that jobs exist to provide people a living, not to get work done for the company.
If you have a family of four to support, why are you working as a clerk at a stereo store, or picking apricots in an orchard? With no plans to move up to a better-paying job, get training at night school, etc.? Is it your employer's job to support your family? Or is it yours?
So much is wrong with the idea of a mandated Minimum Wage, that it takes more space tham we usually have in a forum like this. But there are a few of the high points.