The Minimum Wage Fallacy

UPDATE:  This article was originally published in August of 2012.  Since Gov Quinn doesn’t understand economics, I’m republishing it.   If you want to see higher unemployment, order food yourself at fast food restaurants, and make it impossible for youth to find jobs – raise the minimum wage!

by:  Diane Benjamin

Minimum Wage – Living Wage – whatever you want to call it:  it destroys jobs.

The unemployment rate for 16-19-year-olds now stands at 24.9%.  These teens spent another summer unemployed because of minimum wage laws.  If an adult is willing to work for minimum wage, why hire a teen with no work experience.  In Bloomington-Normal a lot of the fast food chains pay above minimum wage to retain workers.  They will hire adults when possible.

What if teens were exempted from minimum wage laws?  Teens need work experience to develop good work and time management skills.  We are depriving a generation of that opportunity.   We are creating an entitlement society because parents are forced to fund their teens.  Young people are not allowed to feel good about what they can accomplish on their own.

In a growing economy, unskilled adults may work temporarily for minimum wage.  By contributing to the success of your employer, most capable employees will rise above the minimum wage.  Experience and hard work will lead to higher wages, additional education doesn’t hurt.

Expecting government to regulate wages so a single mother can support herself and children on a minimum wage job, is completely unrealistic.  Wages must be based on the value of an employee to an employer.  Higher wages means fewer jobs because prices can not be raised to cover the additional expense.  Higher wages force inflation which defeats the purpose of raising the minimum wage.

Many adults weren’t taught this simple concept.  Watch this video for a good recap of the problem.

2 thoughts on “The Minimum Wage Fallacy

  1. The fallacy exists with the basic problem which is the Federal Reserve that controls money supply. Further problem exists with continuous rising costs in energy, shelter, and food. The basics. Minimum wage will never keep up with the aforementioned. The only reason government raises minimum wage is to increase payroll taxes and fees. Sure the hell ain’t for the people.

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