Sunday, June 10, 2007

Minimum wage

I wonder if you remember the days when if you stopped to get gasoline, a young lad would appear, check your oil, tire pressure, and pump the gas for you. You would then magnanimously tip the kid a quarter ( a dime if you were a real cheapo). Or, perhaps you remember getting on an elevator , only to find a greybeard in attendance who was able to direct you to the correct floor. The youngster in the first case and the old man in the second were working for a pitance
but at least they were employed. The work they did wasn't worth much but you may be sure that the tiny paycheck was greatly better than nothing. Besides, it kept them off the streets and/or out of the old folks home .
Think of the small businessman with a few emplyees. A small grocery store or a restaurant
with a payroll of workers, generally at low wages. Suddenly each worker will cost about $16.00 more per day. Some of those marginal workers will be layed off. Young starter workers will have a hard time being hired. The business will become less profitable and his prices will rise.( This is called an unfunder liability, a favorite tactic by our wonderful congress). Perhaps the biggest effect will be a kind of ripple effect. For example, if one earns $6.00 per hour, now he also will requirw a raise to peraps$8.00, &7.00 to $9.00, and so forth. Almost the entire payroll will rise proportionately. Did congress consider this when they reeled out their statistics ?
What effect might the new minimum have on illegal immigration ? Will it encourage the
illegal scofflaws or will it throw millions of them out of work and somehow, on the wellfare rolls ?
The minimum wage idea just will not go away. My opinion , it is a brainless concept that should be done away with forthwith.

1 comment:

amycue said...

Love your blog - keep it up Dad!
Amy