THE $15 MINIMUM WAGE: BUSINESS OWES YOU

Posted on August 14, 2013

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Obama addresses minimum wage in 2013 State of Union: “This single step would raise the incomes of millions of working families. It could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. For businesses across the country, it would mean customers with more money in their pockets. And a whole lot of folks out there would probably need less help from government. In fact, working folks shouldn’t have to wait year after year for the minimum wage to go up while CEO pay has never been higher.”

St Louis fast food workers have been striking for $15 an hour. A Washington city council recently passed a $12.50 an hour bill for large retailers, focused on WalMart. Federal mandated minimum wage is $7.25 an hour.

Obama said the wage increase could mean the difference between groceries or the food bank; rent or eviction; scraping by or finally getting ahead. Higher wages suddenly imposed upon a business must be paid out of somewhere, and there is not room in the profit margins. The only option is to increase prices so in the end it costs customers more. Why is that better?

People want to work but all of the jobs are going outside of America. How much manufacturing has GM shifted to Mexico? Drive minimum wage jobs up to $15 an hour and drive jobs out of the country, overseas people will work for $3.

It’s supply/demand. If there are 500 people who want 1 position the cost of the job will increase verses 500 who want 10,000 positions in which case that job’s wage is going down.

Why is skill level being ignored? What makes a hamburger cooker more valuable than a programmer? There are reasons for wage differences. Entry level jobs are necessary for teens to get their feet wet, to get people through training or college, or to break the barrier into the real job world. What relationship does minimum wage have to skill or ability? The arbitrary number chosen by government for minimum wage, it’s as if a business owes you that and not for the benefit of the company.

Obama also said while CEO pay has never been higher. Take the benefits away from the private businesses and force them to pay for the 75% entitlement coverage of ObamaCare for Congress? How will that help your prices, job opportunities, wages, less dependence on government…?

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Posted in: Opinion