A new increase to the federal minimum wage has passed the house. If this bill becomes law, the minimum wage will increase to $7.25/hr over the next three years.
First off, if you check back on my blog, Congress does not have the power to regulate wages, so this law is unconstitutional, though that issue will never come up with the overall level of corruption we have in all three branches of government.
Overall, having a minimum wage creates problems for workers, employers, and the whole economy. The true minimum wage varies for anyone. Maybe a high school student working a summer job would gladly take $3 per hour to mow lawns, or wash cars. Maybe he wouldn't work for anything less than $8/hr at a fancy coffee shop.
It's up to a worker to decide what his or her minimum wage should be. Mine is $25/hr or 50,000 a year, I won't work for anything less than that.
There are many that argue, "a worker in a desperate state cannot hope to get a fair wage, therefore we must establish one so someone can live at least slightly above the poverty level."
This reasoning is bullshit.
Even a 30 year old man still working at McDonald's has options. Maybe the Wendy's across the street pays $1/hr more. Maybe he could find work at a construction site making $10/hr or more. Nobody is stuck in their current job. That's not to say they can just quit, but what's to stop them from looking for job options in the newspaper? Nothing.
However, if the minimum wage raises to $7.25, we could run into problems. The McDonald's paying $5.15 will raise their wages to the new figure. But the Burger King at $8 may lower theirs. Jobs where people receive tips might start requiring workers to give up a percentage of their tips to make up for the increase in their wages. Suddenly the job market is less flexible, everyone pays the same, there are no monetary incentives for "shopping around" and nobody is in a better position. It also gives workers a false psychological sense of an accomplishment. That may cause some to stick with their current shitty jobs instead of looking for something that provides them with enough income to truly survive.
Worse for everyone, driving up the minimum wage drives up prices everywhere. Maybe gas will go up another 5 cents because of it (so 10 gallons will be 50 cents more). A Big Mac goes up by 25 cents. Washing your car goes up by a 50 cents. Getting a pizza delivered costs an extra dollar. And finally your dry cleaning goes up by .45 cents a garment. There's the $2.60 right there, in everyday activities. You want to give up an extra $2.60 or more to pay for people that should go out and find better jobs?
It's not my problem that in general the people making minimum wage are uneducated, unlucky, or felons. Congress, keep your filthy fucking hands out of my wallet.
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