Curmudgeon's Corner

cur-mud-geon: anyone who hates hypocrisy and pretense and has the temerity to say so; anyone with the habit of pointing out unpleasant facts in an engaging and humorous manner

Yippee! Minimum Wage Up 11+%

Economy, Political, Quality of Life

The minimum wage goes up from $6.55 to $7.25 today, an increase of more than 11%.  That should be cause for cheering.  Right?

The minimum wage applies heavily to service businesses, and most of those positions are found in food service preparation and serving.

Only 2% of minimum wage workers are married.  The distribution of race reportedly is pretty equal; there isn't a heavy preponderance of one race over another.

Some in our society want to see these pay scales increased more rapidly since they reason that the people in these positions are being taken advantage of and need better incomes.  Others feel that these jobs are useful for those beginning their climb up the income ladder and were never intended to be capable of supporting a family.

The problem is that each time the minimum wage rate goes up, people in those jobs lose their sources of income.  Rather than helping those in minimum wage jobs, the proponents are actually doing harm to some.  It is this kind of social welfare that causes business to find ways to do without the minimum wage jobs.  When the long term cost of a dish washing machine becomes less than the long term cost of minimum wage people for the same outcome, the machine wins and the people lose.

That was an over-simplification, but the meaning comes through.  When costs go up, we find ways to deal with those increases.  We might increase prices, we might demand more  production from existing staff, we might develop a self-service approach, or we might go out of business.

These kinds of "benevolent" actions are not taken in a vacuum.  There are certain immutable laws and no amount of hand-wringing and clucking will alter the fact.

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The Curmudgeon Blog today is titled President Erred...Big Time".

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