I hear many folks saying, “what would it hurt to raise the minimum wage?”, so let me explain, why I and many others don’t believe it is a good idea.
Point one, if you have a business, with let’s say twenty employees, and the Government says you have to pay them at least ten dollars an hour. If you want to maintain your profit margin, which may not be all that much, to begin with, you would have to let one or more of your employees go. Now you have increased the unemployment rate and if you multiply that one company by hundreds and thousands, you have increased the unemployment rate exponentially.
Point two, if you don’t want to let people go, you will have to raise your prices to make up for the loss of your profit margin, which would mean that if you had competitive prices before the wage increase, after the wage increase you won’t have that competitive edge, and if your business can no longer compete, you will go out of business, leaving your employees unemployeed anyhow.
If those who don’t think raising the minimum wage is a bad idea and if you don’t want to be practical, why not just make the minimum wage fifty dollars an hour, that way everyone who is still working, which won’t be all that many, because most businesses will be out of business, those working folks will be able to go to the Bahamas or Hawaii, which would help boost those economies.
The minimum wage was never meant to be a living wage. It is only because this President is so impotent, when it comes to putting Americans to work and unfortunately previous Presidents, that the Minimum Wage has become, for many American a living wage.
If the Government, which now penalizes folks and companies for success, would get out of the way and let the market run the economy, there would be a booming economy with very little unemployment and the Minimum Wage could again be the starting point on the road to success in America, as it was intended to be.