The TRUTH about the Minimum Wage

 

 

"All work is Honorable..."

Sometimes when I think I have heard it all, I hear another whopper. Yesterday, while on the treadmill, I listened to the President go over his first (in forever) budget. In typical progressive jargon, he explained "investments", "fair share", and all the usual lingo. However, I almost fell off the treadmill when President Obama discussed how he wants to raise the minimum wage. His words - "We need to get it up to $9/hour so people can make enough to live on".

I was reminded many years ago when the Twin Cities had a very popular talk radio station. The afternoon drive host was addressing a proposal by the City of St. Paul that any city contracts would have to offer "livable wages" to workers. The only problem was the term. What is a "livable wage"? The host suggested this - for a family of four with house payment, car payment, school expenses, food, utilities and so on, the barest of "livable wages" would be $20/hour. I dare say that amount would be much higher today.

Not to tip my hand on how old I am, when I started to work at the ripe old age of 16, I was paid $1/hour. That was a common wage back then. For those who were fortunate, had connections, and did not mind working hard in the summer time, there were some construction jobs that paid up to $3/hour. However, most of us ended up in retail making $1 to $1.50/hour.

Even back then I knew $1/hour would not be enough to live on. It was fine when living at home with Mom and Dad, but to be on my own? Forget it. I knew I needed to increase my wage by either further schooling, getting a trade, or merit. That was the only way the dollar an hour was going to increase. I did find a way to go to college without going deep in debt, and then found a job which paid enough to support marriage, a house and then kids. The government had NOTHING to do with establishing my wages during my entire career.

Recently, there was an article in the home town newspaper saying Minneapolis had one of the highest rent to income ratio of any city in the country. To afford an average two bedroom apartment, you would need to make $18/hour. This amount would allow one to afford rent, food, utilities and so on. That is double what the President said a "livable wage" should be. $9/hour does not buy spit these days. Try buying a half-way decent car making that much - never happen.

To increase wages, we need to increase OPPORTUNITIES. Been like that since the beginning and continues today. People need to see an opportunity and then pursue it. If they choose not to pursue it, well, life is about choices. My feeling has been for many years the minimum wage is silly. Let the market decide what a fair wage is. The higher the government sets for wages, the fewer number of people an employer will hire. Basic Econ 101.

So the next time you hear a politician blather about the minimum wage, ask yourself this question - who in the world can live on that amount? And if it is too high, who in the world can pay that amount? It just takes common sense - or as they said years ago, Garage Logic...