Sunday, May 15, 2011

The Wisdom of Higher Minimum Wages?

Increasing the minimum wage when jobs are scarce is so stupid, it is almost an annual campaign for liberal politicians to unwrap as a new idea.

Gauge how wise such a politician is. Because research shows minimum wage increases always cost jobs of entry level workers. It is criminal to impose higher minimums during a recession. That stymies the possibility of stimulating any increase in job opportunities.

Yet, those at lower levels generally leave for higher wages or get raises with time. It’s usually not the same worker remaining at that level. A fact proponents conveniently overlook. The vast majority of folks do not remain at that level forever.

Moreover, minimum wage increases cost jobs. Employers must think twice in estimating the value and affordability of their workers. Especially small businesses who are responsible for the bulk of American employment.

The minimum wage is a ploy of powerful unions whose contracts are then automatically revised up from minimum wage levels.

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