LETTER: Move away from entitlement mentality
Well raising the minimum wage has once again become a popular crusade again. It has been called an attempt to achieve "economic Justice". In the current PC culture governments are tempted to guarantee a so called living wage.
This is basically is classic socialism, but we still live in country where free markets mostly prevails, since minimum wages were never meant to support a household it was designed to get one's foot in the door, to obtain marketable skills and not an end all permanent situation. Workers were to acquire skills and move on. Most everyone remembers starting at a job earning a paltry wage, it created character, instilled a work ethic and often later fond memories.
Instead now some of us has a sense of entitlement and believe that they should forego these valuable life lessons. We could accept these new requests and bow to popular culture but the result is a zero sum gain. Businesses if desiring similar profit margins will simply make alterations in their business plans, they would not stay static since they do multiple options. This issue is very much like an exam question in an economics class. The increase in a minimum wage would have immediate consequences, first obviously would be in increased cost to the business. The consumer would see a dramatic increase in their price of a favorite product whether it be a hamburger, taco, or whatever. This is especially pertinent presently since businesses are cautious about their futures with added burden imposed by Obamacare. So, letʼs see... businesses could hire fewer people demanding better qualified and skilled workers, resulting in less entry level jobs. Requiring that employees produce more and work harder could also be a result.
Businesses could decide to close since the legislation priced them out of the market, they could move to a more business friendly location or even outsource their products internationally.
Technology also has advanced so much now and economically feasible to replace some workers with automated counterparts. All these possibilities would result in higher unemployment especially for those first starting out. Raising expenses or taxes for any business is a job killer; money is fluid it simply will go else where.Ironically this legislations unintended consequences result in hurting mostly it was trying help, the young and often minorities.
So in conclusion I would suggest we move away from this entitlement mentality which is the current rage, buck up and "stop whining" and move on. The amazing part of the free market system is that it creates a venue where activities are the most economical and efficient, ultimately providing the most fairly priced product for the consumer. Whenever the government gets involved in mandates and price fixing it usually ends badly. The free market is infinitely better at judging who and how much a employee should receive in pay, the government has no way of accessing that value.