Wow, my state-of-origin has continued to dig itself deeper and deeper into an economic rat hole. This week the Michigan Legislature voted for a $1.80 increase to the minimum wage in response to the current push to place a constitutional amendment increasing the minimum wage on the November ballot.
Here's a brief article, written three days ago by Mark Steckbeck of Hillsdale College, that talks about the illogic of increasing the minimum wage.
When dealing with minimum wage issues, it is vital to remember two things. First of all, when the price of anything increases less of it will be purchased. In this case we are talking about the price of labor. As employers are forced to pay their minimum wage workers (who, by definition, aren't valuable enough to earn more than the employer is forced to pay them) more, fewer minimum-wage/minimum-productivity workers will be employed. It's as simple as that, and has been born out many times in studies.
Second, Steckbeck does a good job of illustrating just who earns the minimum wage. The reality is that a tiny fraction (2.7%) of workers make the minimum wage in the first place. Of those workers, most of them are young and living with their parents, gaining valuable experience at a first job - experience that will allow them to go on and lead a productively employed life. Those minimum wage workers who are not young, the vast majority of them are either supplementing their hourly-wage with tips (ie, waitstaff, bartenders, etc....) and making decent money, or are simply working to occupy their time and supplement social security income post retirement.
Ok, I'll get off my horse for now. Got to go get more schoolwork done....
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