Thursday, August 29, 2013

Minimum wage

One confusing aspect of governmental controls that is a bit crazy to me is the imposition of a minimum wage. Personally, I feel that those people that work should receive a fair compensation for their labor. Anyone withholding wages from a worker to keep exorbitant profits for themselves should be prosecuted in a court of law. A minimum wage to me however, is counterproductive in many ways.

#1- Minimum wage, as dictated by government, does not take into consideration market, demand, costs or any other conditions regarding any particular business and the profitability to remain operational.
#2- Minimum wage, as dictated by government controls, removes the competitive nature of international commerce and manufacturing. Countries without minimum wage produce and manufacture cheaper than we can. Fair or not, that is a fact.
#3- With far less jobs available due to the competition in non regulated countries, right here in the United States, far more people are on government assistance. Government assistance is funded (supposed to be anyway) by income taxes of working people thereby reducing their take home pay.
#4- The higher the minimum wage, the less competitive our products and services, the less competitive these things are, the less companies there are, the less companies there are, the less people are employed at any wage, the less people employed, the more people on government assistance. The more people on government assistance, the more taxes needed to pay for the assistance. With less people working, the higher taxes they pay so minimum wage or not, their take home pay is taken away by excess taxes.
#5- With more and more people losing their jobs because we cannot compete with other countries, more and more people are buying the imported products from other countries because they are way cheaper. Resulting in a reverse cash flow from the united States to the other cheaper countries draining our cash resources so fewer and fewer companies remain open. Creating a downward spiral in our economy.
#6- In my opinion, wages too high to compete=fewer people employed=more people on assistance=higher taxes=fewer people to pay those taxes=an overall lower wage and our currency becomes worthless. So, what did the minimum wage dictated by government to increase our standard of living actually accomplish?

Oh, wait a second. Am I talking about the United States or is it Greece? I forget sometimes. I'm probably just a bit tired, need coffee. Have a good day.

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