Raise my Salary until I’m broke!

We constantly hear from the liberals and Democrats about the poverty rate and the need to increase the strength of the middle class. It is true, we do need to provide a system necessary that allows people to improve their lives and incomes. But the problem with the Democrat’s solution is it just doesn’t work. As you know, there is a current push financed by unions and supported by Democrats in this country to increase the minimum wage. They believe this change will assist the lowest paid Americans in improving their lives. But the logic behind this is severely flawed. Let me explain.
1. The poverty rate in the US has averaged around 13% since the mid 1960’s, but it is not the same individuals every time the survey is taken. Young workers with limited skills start out at low wages and often below the poverty line. This is understandable. As these same people develop skills and knowledge, they are promoted or find better employment and raise themselves out of poverty in a short period of time. This is just the evolution of employment. It is not due to any “failed system,” we just must realize that we all must start some where.
2. Raising the minimum wage increases poverty and unemployment. Many people believe the minimum wage is just that, the minimum, but it is not. The minimum wage is $0. If you can’t find employment, you make nothing. If you set the minimum wage too high, the unskilled worker does not bring enough value to many positions to even be be hired. The employee or the job does not justify that cost or a cheaper automated option will be created. This creates a level of poverty that is difficult to escape from since you cannot get a job to develop skills to get a better job down the road. This is truly what creates a cycle of poverty.
3. Raising the minimum wage only benefits the government. With any increase in cost of business, whether it be labor, taxes or regulation, the added expense is passed onto the consumer. We pay more for our Big Macs, iPhones, and gasoline. So even with a salary increase via a minimum wage hike, more of our money goes out the door to pay for our basic needs. But for the government, it pushes people into higher tax brackets or takes them off government assistance, increasing the governments income. So our Representative just instituted a tax increase and the people they taxed cheered it on because they never saw it coming. As a matter of fact, these people will often place the blame on the business owner who they feel is unfairly raising the prices. Sad thing is, it is usually the business owner who gets hurt the most when these things happen. Oh the irony!
So beware of these so called do-gooders pushing for a minimum wage increase. As Ronald Reagan said, “The Trouble With Our Liberal Friends is Not That They’re Ignorant; It’s Just That They Know So Much That Isn’t So”


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