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Saturday, February 22, 2014

The Minimum Wage, the American Economy, and U.S. Senator Al Franken

I recently saw a meme with which I so totally agree that I am reproducing it below:


Click on over to the following embedded link to Meet Al and from there you can explore the rest of that website of Al Franken, U.S. Senator, Minnesota.

Oh, and another meme regarding the minimum wage to which I wish to draw your attention is as follows:


As that meme clearly shows, the real dollar value and purchasing power of the American minimum wage has consistently and dramatically declined since 1968.

2 comments:

CWMartin said...

Roland, I know we're going to agree to disagree here, but hear this. My last job paid between minimum wage and 10.25 per hr. It employs about 90% Mexican immigrant labor, and has about 40-50 % turnover. A dump? Well, this dump was (maybe is) the nation's #1 manufacturer of patio replacement cushions and umbrellas. At one point, they held all the business of Wal-Mart, Lowes, Home Depot, Sears/K-Mart, and a lot of expensive specialty brands. There is no way in hell this business will eat a nearly 30% hit to their payroll PLUS obamacare. They will shut down plants in North Carolina, Fort Wayne, scale Amarillo down to a pittance, use the California plant for import and farm everything to China if the minimum wage is raised. Then the local work forces will have to absorb that labor, because you can trust me most of them will NOT go back to Mexico. Raising the minimum wage only gives low paying businesses an excuse to cut hours rather than offer health insurance, and the people working two and three jobs to make ends meet will find themselves losing two of those three jobs. The answer is not government control of wages, but making a climate that will create BETTER jobs. And if the Administration is right about obamacare giving the "freedom to move about in jobs without losing insurance", There will be a lot of people "moving about", looking for jobs that cannot exist because none of the businesses that can create them can afford the new restrictions on health care. They are both good intentioned ideas, but the law of unintended consequences will make sure they cause more harm than good.

Jaison Jensen said...

Yes yes yes. I can't agree more with you CWMartin. I have seen so many idiots who know nothing of economics speak about federal intervention on minimum wage. It honestly makes me sick knowing that they are trying to help by petitioning for a higher minimum wage but are actually driving buying power of the US dollar down as a result. That wage has to be paid by the company, which as a business needs to make a profit. They compensate for this new expense by increasing the price of their goods and services. What is the net result from that? Fewer jobs available due to lack of capital, fewer qualified candidates getting jobs because of the higher wage and outsourcing of jobs to countries that can perform the same task for much cheaper. People don't understand that raising the minimum wage only hurts the poor and the unskilled. Why hire someone with no experience to do a $10/HR job when they aren't worth $10/HR for the skills they have (or don't have)?