Minimum Wage Increase Needed

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Editor:

Inspired by the president’s plea for increasing the minimum wage, I wanted to share my thoughts.

I have always felt that the American consumer is the greatest job creator for the economy, so increasing the minimum wage so that more consumers will have more money to spend just seems to make sense to me.

It is gratifying when the right thing to do is also the smart thing to do. It is so frustrating when some think that increasing the minimum wage will harm the economy when studies show that increasing the minimum wage actually results in an up-turn to the economy.

But perhaps improving the American economy is not really their long-term goal. (OMG, am I becoming one of those crazy conspiracy nuts?)

Thanks for your consideration.

Wendy Trainor

Comments

Pat Randall 8 months, 3 weeks ago

Raising the minimum wage is great until it puts many businesses out of business. when wages are raised so are the other cost of business, more SS is taken from employers, unemployment ins. is raised, workman's comp. etc. It isn't just the raise in wages that hit a business. Go get a job as bus driver in the Phx. area.

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Donald Cline 8 months, 3 weeks ago

Ms Trainor is apparently another one of those people who think money is free and that employees should always be paid whatever they need instead of whatever their labor is worth. This error is fairly common among products of the public school system, who stopped teaching reality or history about thirty years ago.

Ms. Trainor: I just know your sense of fairness is going to take a real hit when I say this, but no one earns what their labor is worth in the marketplace. If they did, no one could afford to pay them, for there is no profit in a zero sum game. A lot of good people do very good work and are worth every penny they are paid, but their labor has to be worth more to the employer than it is to them. When you pass a law requiring an employer to pay an unskilled worker more for the same amount of work, you quite often price that employee right out of the market. The employer doesn't make enough profit on the labor that employee provides to pay his wages, his social security (illegal under our Constitution), his medical benefits, his sick leave, his vacation time, or his retirement.

All you are doing when you insist on a higher minimum wage mandated by law for the same amount and quality of labor is reducing the value of the dollar by that amount. Some employers who can't get along without those unskilled workers will have to pay the higher amount -- and they will have to charge their customers more for the same product or service.

Have you ever heard the word "inflation"? It's when too much money (wages) is chasing too few goods and services, i.e., when the price of those products and services go up. You might not be old enough to remember when gasoline was twenty-five cents a gallon, but I am. Unions insisting on higher wages is one of the reasons gasoline is now $3.50/gallon. Or, to put it another way, today it takes $3.50 to buy $.25 worth of gas.

If you want higher wages, get an education and make your labor more valuable to an employer.

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