When the government interjects itself into the minimum wage debate it only does so for the benefit of unions as union workers’ wages are based on the minimum wage.
When a Socialist got elected to the Seattle City Council, her primary issue was raising the minimum wage and the media jumped aboard.
Congress has wielded its interstate commerce power to create a federally mandated minimum wage. This wage directly affects the poorest members of our economy. Many lawmakers incorrectly assumed those people would make more income simply because the law raises the lowest pay an employer must pay.
However, these people tend to also be the least skilled. If the minimum wage is set above the level of production that a person’s skill level dictates, he/she will have a harder time finding employment.
If, for example, an employee’s skill level is $10 an hour and the government sets a $12 an hour minimum wage, that will generate a negative return and as a result the person would not be hired, leading to more unemployment and lack of enhancing the person’s skills resume.
Minimum wage jobs were never intended to be family wage jobs. If higher wages are desired, develop skills that demand them.
Jaen P. Henry