Raising the Minimum Wage Won't Make the Wage Livable

As a worker who made minimum wage for most of my adult life, it may be surprising that I do not support an increase in the lowest rate that laborers can earn. Many people simply think that the more money they make the better off they are, but the truth is government mandating an increased minimum wage keeps the people making the wage at the same level they were before.

Promising the lowest paid works more money may score political points for politicians when the primaries come around, but it does not really prove the lot of their constituents. Walter Williams, economics professor and frequent guest host for Rush Limbaugh, decries the state of the teaching of basic economics in this country. I will try as best as I can to explain it. One of the highest cost of any business, unless of course the person is self employed is hiring labor. A good percentage of the price of goods you pay for in the store goes to hiring people to work the cash register, stock the shelves and making sure the product gets there..

Increased labor costs or any increased cost merely go on to the consumer. Another good example of this and one that many can relate to is that the price of many goods have gone up as the prices continue to climb. We may not seen relief for high gas prices anytime soon, but increasing the minimum wage will only further increase the prices. Not only that, many people who were making slightly above minimum wage before, will now find themselves making the lower rate. They may earn more money in their checks, but the purchasing power has effectively been decreased. The prices of all goods will go up to the point that businesses can pay the increased wages that their workers are now making.