The Subtle Side of Minimum Wage Increases

Who Gets the Black Eyes?

Minimum wages for workers, if determined by each state, instead of people in Washington DC, could result in less manufacturing companies being forced to go out of business (and let China do it for them) or go to Mexico. .A person renting a house in Los Angeles for $900. a month could be buying the same
house, if it was located in the right area of Alabama for $300. a month. Alabamians don't require as much heating oil or gas in the winter to stay warm, as people in Michigan or Montana do. Southern states are also self supportive food wise. Food imports are not mandatory.

Minimum wage increases are a temporary boost for the economy. Then what? College graduates are going to get paid higher than minimum wage of course, otherwise, there would be no motivation to go to college. Nurses and others will end up with 3 or 4 times minimum wage eventually, if not sooner. So what's the problem with this? Simply, every one goes into a higher tax bracket. (A minimum wage increase in the long run is a tax increase). A black eye scored here.

An unskilled 16 year old worker can work 40 hours a week and have more money, than their grand parents, who in many cases are paying the bills and buying most of the food for a lot of households. The 16 year old may want to spend a lot of their money on fancy wheels for their car, fancy clothes, or hopefully not on alcohol or drugs. (The retirement check has been diminished in value). A black eye scored here.

Minimum wage increases means the fast food burger is going to cost you more, just to name one item. Larger bill folds will be in demand. People will have to carry around more paper dollars to buy just about anything. Weekly it seems, prices are going up. A lot of people show no pity on small business owners, that may fall by the way side, because they can't afford skilled help, that naturally insist on more than minimum wage. A typical response is: people will just have to get a job with a bigger company. What does this mean? While we're trying to help the poor, the millionaire owned companies may benefit the most, as their small competitors go under.