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Raising Minimum Wage Creates More Issues

March 3, 2014


A contractor’s pay scale is $8-$10-$12.  Do we expect high­er paid workers to get raises? Another contractor has a pay scale of $10.10-$12.10-$14.10 and requires experience and a high school degree. Will this con­tractor increase wages to main­tain the spread over the first contractor?

What plans have we made to pay for the additional cost of these wages? Food stamps, earned income tax credits, Me­dicaid and other health insur­ance benefits may be affected. Have we considered the impact on jobs lost to other countries as we become less able to com­pete with their lower wages? Have we told those working for
a minimum wage that unem­ployed workers with better qualifications may want their jobs?

Minimum wages are not the only wages that will increase. This additional cost will be passed on to consumers and taxpayers, diminishing the ef­fect of the wage increases. Most agree that you cannot support a family or yourself on a minimum wage without help. We tried raising the minimum wage many times without elim­inating poverty. We tried earned income tax credits, Me­dicaid and food stamps, yet poverty still exits.

Remember when workers were receiving 8 percent and 10 percent raises as a necessity because of rampant inflation? Those increases inflamed infla­tion and lessened our ability to compete in manufacturing jobs. We cannot lose our ability to create new jobs.

The education of our chil­dren is falling far behind the rest of the world. We must train and educate our children to compete in the complexity of the world in which we live. If we must continue to print extra money to solve our problems, let us spend it on education.
Copyright ©2014

 


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