Friday, September 2, 2011
Good Intentions: Minimum Wage Cost and Benefits
For people who are against the Minimum Wage and I'm one of them the more I think about that and I'll explain why later. I would ask them without the Minimum Wage, then what? Would paying waiters and cashiers and other people 1$ an hour and not let them collect tips be acceptable, because thats what the Free Market allows? I say of course not take away the Minimum Wage tomorrow and we'll see thousands if not hundreds of thousands or millions of Low Income workers in America. Receiving Pay Cuts even if they are good workers because their employers would be allowed to do so. And these people would end up on Public Assistance or back on Public Assistance because they can't get a good enough job. To support themselves and their family's. Is that what we want in America more people collecting from Public Assistance instead of paying into it, is 15M Unemployed Workers not enough? One of the reasons to have the Minimum Wage is to encourage more Low Income Low Skilled people to work. You take that away and those people lose that incentive to work and will decide to go on Public Assistance or go back on Public Assistance. Which would be another punch in the gut to our weak economy thats about to get knocked down. What we need to be doing especially with Low Income people, is to encourage more of them to work not less. We should have more people paying taxes, we should have more High Skilled workers in our Workforce. And our Low Skilled workers need to be getting more skills and become High Skilled workers or at least Professionally Trained workers. People who are educated to work a certain job or in a certain field. Then they can go from being Low Skilled Low Income workers, to Well Skilled Well Paid workers who are paying taxes and not collecting Public Assistance and are Self Sufficient.
Like I said before I'm against the Minimum Wage because it doesn't pay enough and we still end up with Low Income Low Skilled workers. Who are still collecting Public Assistance, like Medicaid, Food Stamps, perhaps Child Care Assistance and who aren't paying much into these Social Insurance Programs. But I wouldn't eliminate the Minimum Wage and replace it with nothing. What I would do is eliminate the Minimum Wage and replace it with a Federal Living Wage. These people would still be Low Income to a certain extent but if your making 7.25$ an hour right now which is the Federal Minimum Wage. Its actually higher in some States, you under my plan get a roughly 38% raise in their Hourly Pay. Up to 10$ and hour roughly adjusting it for inflation, thats what it was back in 1969. As well as some type of Job Training System, where these Low Income workers to go back to school. While they are working to get more skills so they can get a better job and not have to live on the Living Wage. And I would also index it for inflation meaning that the Living Wage would have to keep up with inflation at least. And allow business's to deduct 30% of it from their taxes so they don't get hit by it. And the Living Wage would only cover workers 21 or over and anyone younger it would be back to 7.25$ an hour.
The point of the Minimum Wage or as I would prefer a Living Wage, is that there's some Financial Incentive for Low Skilled workers to work and not be unemployed. Collecting Public Assistance, Welfare Insurance or Unemployment Insurance. And you take that away and we would see more people collecting this Public Assistance.