Minimum wage laws are a jewel of the left and labor unions. To the average person it seems like a decent idea, force employers to pay at least $7.85 per hour. That number only represents $16,328 a year. Surely anyone working deserves at a minimum a living wage. I used to think this myself, until I dug deeper and realized how minimum wage hurts our country and does nothing for those it intends to help.
The first glaring reason to abolish the Minimum Wage Law is because most people do not earn minimum wage. In 2005, only 1.5% of people worked for minimum wage. This is a very small group. This means that 98.5% already earn more money than minimum wage. The market decides what people are able to justify for income, and most people have skills which warrant far more.
So now doubters are saying, you just do not care about that 1.5% percent that would get a raise. This is actually not true. First of all, a large portion of that percentage is paid minimum wage because they receive extra money through tips. They are bartenders, barbers, waiters, and waitresses. These individuals earn far more than minimum wage, yet are paid cash so they show up as being affected.
Also in those numbers of minimum wage were over half of them are young workers under 25. The most important thing for a young person is getting experience. They understand that putting in a tough year of low paying work will lead to better opportunities. The higher minimum wage laws have created spoiled zombies out of our younger generation. Most teenagers will go until after college ever having any sort of real job. Unemployment at the younger ages is a huge problem, abolishing the minimum wage law would allow for more of our entry level workers gain those important skills.
This leaves the final group that actually gets paid minimum wage. I know, what about them. Well I say they already benefit other ways. If you make minimum wage, most likely you are on government housing, food stamps, Medicaid, fuel assistance and all the other government goodies. My point is if this is the group you are worried about, you shouldn’t. That is the point of this countries welfare system. This is where the Liberals want to have their cake and eat it to. Get rid of welfare and its massive costs if you want higher wage laws, get rid of welfare.
This would be a boon to small business since they would be able to hire low cost workers to help them grow from a very small company into a much larger one. They need to be able to lower the start up costs of opening a new location. By abolishing the wage laws, we will take the pressure off of small business. Make it easier and cheaper to hire. And lastly, give our young a chance to get those skills.