Minimum Wage and Why We Should Leave It Alone

Topics: Minimum wage, Employment, Supply and demand Pages: 2 (760 words) Published: May 18, 2010
Can you remember a time when it did not cost over $5.00 for a “Value” meal at any fast food chain, or when gas was under $2.00? It’s hard to remember, isn’t it? The reason for the raise in price of the products you and I purchase on a weekly basis all has to do with the continuing raise of minimum wage.

Donald R. Deere says “There are two ways to think about the minimum wage. The first - but misleading - is how much workers are going to get paid. The second - and correct - is how much people must be able to earn if they are going to get or keep a job. So the minimum wage, which is sometimes characterized as a "hand up, not a handout" is neither - it is a hurdle that trips up the least skilled.”

The continuing demand of more money for less work has forced the United States to raise the minimum wage innumerable times in the last century, Which results in higher prices for the rest of us. Another raise in the minimum wage would, as all the others before it, raise prices for consumers, which would again result in another demand for a raise in the minimum wage. it’s a viscous cycle that must be stopped before it loses control. Not only does a raise in minimum wage result in a raise in the cost of living, it also causes the dismissal of hardworking people who are happy with their current income. When the firing axe starts to fall, seniority often determines who goes and who stays. The more a single employee costs a business an hour, the fewer employees the business can afford to employee an hour.

This results in the dismissal of employees to compensate for a raise in labor costs, which creates a smaller staff, which results in slipshod service. Although most reasonable people would rather pay more for better service, the plain fact of the matter is that the service hasn’t really gotten any better. The service is better that it was when there weren’t enough employees so people assume the service itself has gotten better, while the truth is that the...
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