Warning! Wall of text coming!
I can understand why many people that like the idea of increasing the minimum wage believe that it is a good thing. I totally understand...but it always comes at a cost.
I can remember my first job while I was in high school. I made $3.35 and hour...woo-hoo! That was...erm...over 30 years ago.
What I have observed over the years is that every time the minimum wage goes up, the cost of everything else goes up. The fallout of this is while it is great that those on the low end of the income scale get a bump, they only get to enjoy it for a very short time. Also...everyone else who was making say...$12.00 dollars an hour are NOT going to get a raise but their costs are going to go up. See the prison?
I'm not saying it is right that every time the minimum wage goes up that the cost of everything else goes up to...it is just a reality. Corporations work on percentages of profit over cost. If it costs $10.00 to make something and you and your stockholders are working for a 25% gross profit...that product must sell for no less than $12.50. If the cost of producing goes up 10% and now cost $11.00 to make...the associated product will now sell for $13.75. See how this works?
I like to think of myself as a realist with hopeful thoughts. I "hope" that one day the world will be fair and we can all live in decent homes with food on our table...but the "realist" in me says..."ain't gonna happen"...
Here is a thought though…
In 1972, the price of an ounce of gold was $38.00 per ounce
(source =
http://minerals.usgs...gold/300798.pdf )
In 1972, the minimum wage was $1.60 an hour.
A person in 1972 had to work approx 23.75 hours to earn the equivalent of an ounce of gold value.
In 2013, the price of gold is roughly $1,580.00 an ounce (give or take)
In 2013 the minimum wage is currently $7.25 and hour.
A person today must work approximately 218 hours to earn the equivalent to an ounce of gold.
Just saying…the system isn’t balanced and most people have not observed this huge imbalance …it happened over nearly 40 years. They did not “feel” the water warming up.
Consider this…
In my humble opinion...
If you really and truly want to make the life of others more prosperous and fulfilling...
There is only one possible road...
Freedom.
Here comes my soapbox moment..
Many have this idea that the Gov mandating wages is the answer when time and again it has been proven to be only a temporary "pleasure" until the costs rise and wipe out the gains...fact.
The Gov...while mandating this...is also holding strict laws on free enterprise and entrepreneurship. They are holding both ends of the rope that they are using to hang people with. Raising the minimum wage does not create prosperity, it continues wage slavery.
I say...get the Gov out of the way...let people do what they can do to take care of themselves. If a person wants to get a cheap trailer and a cheap grill and sell cheap hot dogs along the side of the road...he should be able to do that. he should not have to pay for licensing and regulations just to get started. Sure, have a health inspection randomly to make sure the guy isn't poisoning people...but do not punish before he even gets started.
If someone wants to be a door-to-door masseuse...they should be able to without ridiculous rules and regulations.
All these regulations and codes do is stifle competition in the market place. If you are already up the ladder, what a better way to keep your "position" than to lobby for regulations that limit and/or remove competition...
The only true answer is complete economic and financial freedom for all. I am not talking about no oversight...there are some things that have to be monitored for safety...but...many things are regulated for the sake of regulation alone. There used to be a term..."Buyer beware"...if you choose to purchase poorly, that is your lack of research...it should not be up to the Gov to protect you from your own stupidity.
I believe things like prostitution and certain herbal substances should be legal. They can be taxed and it boils down to two people making a contract between them. There should be no place for the Gov in this arrangement.
I digress though. I believe in freedom and personal responsibility. I know many-many people believe the answer to our woes is in more and more Gov't control and for me and those that feel as I do...that is the exact opposite of what needs to happen to return to prosperity...
/end soapbox