The Minimum Wage Conundrum

Democrats will tell you that we need to keep raising the minimum wage, that artificial barometer that they say helps working families get into the middle class. And it keeps screwing up the economy because it violates one of the most sacred principles of a free-market. The market will find the price at which workers should be paid.

There. It’s been said. Minimum wage jobs are not that common. The last time I was paid minimum wage was the second job I ever had…cleaning Berhndt’s Jewelry in the morning before school, and then after school. I think I made $1.40 an hour. I spent Saturday mornings mopping the floors. It was good, hard work, and I was happy for the spending money. Since that time, I’ve been fortunate enough to make considerably more than the minimum wage.

All the minimum wage does in reality is create inflation. It’s a vicious cycle. You give everyone on the bottom a raise, an owner has to continue to make a profit margin, so he raises prices to cover the cost of the wage increase, and/or he decides to do with one less person and that person loses their job. Everyone adjusts, and then a few years up the road it’s the same thing all over again. That’s not the way the free market works, and it’s not the way it should work. Now, we’ve reached the point of ridiculousness.

In Seattle, they’ve got a $15 an hour minimum wage…for ALL employees…even waiters and waitresses. Even for burger flippers. And that is bringing about some creative thinking on how to deal with it. No longer would someone need to be tipped because they’re only making $2 an hour “plus tips”. Now they’re getting the full $15 an hour. There is no need to tip…and a lot of restaurants are going to a no-tipping strategy. It’s a way to raise prices by up to 21% and really keep things kind of reasonable.

Figuring that the average person is tipping between 15-18% anyway (the push in some places is to go to 20%), it’s like you’ve always been paying that much, it’s just included in the bill now. And of course, the wait staff actually takes home less pay because they’re having taxes, social security, and medicare taken out. And of course, they’re also having Obamacare taken out now too, whether they want it or not.

The solution to this problem is simple. Do away with minimum wage. If you are a low-income person because you can’t do anything but low-income jobs, you needed to spend more time paying attention in school. If the marketplace dictates that flipping a hamburger, or delivering pasta Primavera is only worth $5 an hour, that should be your wage. And if someone is willing to up that to $7, you’re free to go there, because that’s the open market. Of course, if you’re getting $5 and no one else is willing to pay you more than $3 for the same job, you could lose some money. That’s the way it goes.

When will Democrats ever learn? So smart…yet so stupid!

Carry on world…you’re dismissed!


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