by Dr. Monroe Mann, PhD, Esq, MBA, LLM, ME, EMT
Quick and dirty economics lesson. Ready?
FIRST, A MINIMUM WAGE IN GENERAL:
a) The government cannot force private companies to hire employees.
b) A private company will not hire employees if it does not have the money.
c) The higher the minimum wage, the less employees a company will hire.
[Are you with me? This is simple logic.]
d) The vast majority of companies in the USA are small businesses with less than 50 employees and NOT huge multinationals like McDonald’s.
e) The vast majority of these companies do not have hugely overpaid executives, so any minimum wage hikes necessarily will result in the letting go of current employees and the reduction in future hires.
If anyone would like to dispute this with economic logic, I’m all ears.
SECOND, A NATIONAL MINIMUM WAGE:
a) Different states have different economics, i.e. it’s more expensive to live in metropolitan New York City than in rural Idaho.
b) Therefore, to have a $15 national minimum wage is absurd, because it means those living in Idaho will essentially be receiving more dollar purchasing power per hour than those in Manhattan.
c) Therefore, a national minimum wage, contrary to creating income equality, effectively serves to further it.
d) Those people who use a national minimum wage in other countries as an example often use small countries with tiny populations and tiny economies as compared with the USA. However, a national minimum wage ANYWHERE is foolish, for precisely the reasons I stated in (b).
e) The solution is to allow states to continue creating their own minimum wages, so that there is competition between the states to draw talent.
Again, if anyone would like to dispute this with economic logic, I’m all ears.
Thanks for reading. I’m going to go to bed now.