Minimum wage, if we are to have one ought to be closer to $22 a hour by now. To see why, check out my work: MINIMUM WAGE IS AT AN ALL-TIME MINIMUM. IT SHOULD BE $20.12 AN HOUR, IF ... But if we were to have such a minimum wage, all welfare should be eliminated for those working.
As it is now, because Congress pays for food stamps, Section 8 vouchers, Obamacare and other welfare is why workers can work at the min wage rate set by Congress, which is what, $7.25 an hour.
In effect, Congress subsidizes the big business industries, e.g., retail, fast food, that rely upon minimum wage workers.And since Congress taxes, it those who pay taxes ultimate who subsidize firms so they can pay minimum wage.
No one can work at a loss for long. The minimum wage rate is below the rate needed to break even for anyone needing to pay rent, food, energy, transportation, medical bills insurance, and clothing.
The worst bit is this: Because minimum wage jobs are low-skill / no skill work, the abundance of having such jobs acts as a magnet for mestizos illegals coming from Mexico, Guatemala, Honduras, Nicaragua, El Salvador.If Congress were to raise minimum wage to what it should be comparable to buying power of the past while at the same time ending food stamps, Section 8 vouchers, Obamacare subsidy and the like for those working at the new minimum wage, the illegals job magnet would be shut off.
Most have a knee-jerk reaction against raising minimum wage. They have been trained to parrot academic arguments such as raising the minimum wage rate creates more unemployment or it raises costs.
Yet those dummies never reckon the effects of a lower minimum wage along with welfare subsidy upon their tax rates. Of course, their tax rates are much higher than should be because they are paying to subsidize minimum wage workers by paying for Food Stamps, Obamacare, Section 8 housing and much more.
A low minimum wage is a boon to Big Business and a bane to working-class Americans. Ideally, it should not exist at all. Then again, positive-rights welfare should not exist as well. However, if minimum wage is to exist, it should be high enough that most welfare can be eliminated.
Employers can only ask for higher prices until some or enough people stop buying their products. So the fears of rising prices owing to rise in the minimum wage rate are unfounded.
A low minimum wage actually makes the economy less efficient as it has more capital being diverted to low capital return industries. This is why there seems to be a Starbucks on every corner and a McDonalds on every block.
Gab It
