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Sunday, March 21, 2010

Minimum Wage

We all like to think that everyone deserves to earn a descent wage. For the most part I agree with that concept. Unfortunately, there are those who are not qualified for wages above the minimum wage level. However, businesses are forced to pay substandard workers better than entry an level wage. This creates an imbalance, where workers worth a better wage are paid less to keep costs down. Have you noticed an increase in minimum wage, never means an across the board raise. So the only people who benefit are those not worth earning higher wages to begin with.
Another problem with paying a minimum wage is when that wage goes up business is more likely to reduce the size of the workforce, instead of paying more money for substandard work. When business downsizes, this creates more work for those remaining, as the trash jobs are spread out among the workforce, or farmed out to companies (such as those who specialize in performing janitorial contract services performed by "self-employed" franchisees who since they are self employed, work below minimum wage and pay a portion of their profits to the franchiser).
Many businesses have their human resources and clerical services serviced by third party companies for the same reason. Higher minimum wage means fewer high school students, find jobs, and hence are sitting around with nothing to do, but, get into trouble. When you look at who earns a minimum wage, you will find the entry level inexperienced and those who are all but unemployable. These should not be those who are trying to support a family, they should already be established workers.
I understand there are those who have lost their jobs for various reasons (like those whose jobs was eliminated when the minimum wage went up), for instance look at those whose jobs were eliminated as they became out of date (the Buggy whip industry comes to mind).
All one has to do is look at internship, and that process which gives an opportunity for someone to gain experience without the burden of employers having to pay them. Our own government has congressional interns, pages, and "volunteers" which in it's own view is perfectly within the law. Also, look to the food service industry, not the fast food industry, but high scale restaurants, they avoid paying minimum wage by professing that customers leave tips. But that would only be true of good wait staff. And, what makes it okay, for the government to utilize "volunteer" workers, without pay? Why do large media corporations, and medical organizations get to have interns, when McDonald's and Burger don't? I am not advocating allowing every business to have internships. What I am advocating making every place of employment adhere to the rules on a level playing ground. Letting the free market decide what employers pay, and what employees will work for.

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