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Minimum Wage 7/6/2004 7:20:54 AM
This was a posting made on another forum, which decided should be posted here. It gives my general thoughts on Minimum Wage. An additional thought states all Wages are to a degree tied to the Minimum Wage, requiring as they do a Wage-scale diferential. There are certain basics which need be considered when discussing the issue of Minimum Wage. Business opposition to Minimum Wage rests on the exact opposite of their claims. We are talking about the resident Labor pool absolutely mandatory for business operations. These are the Workers who provide continious, support services to maintain production. These are the exact Individuals who cannot be downsized, laid off, or outsourced. They do the menial tasks which have to be done in order for business operations to continue. The upshot is that they are a irreducible labor cost.
The above condition insists that the higher the basic Minimum Wage, the greater the risk of Profits to the industry with heightened production costs. This converts to greater likelihood of unprofitable years without bonuses, Stock options, or increased Retirement packages. The Minimum Wage actually attacks their standard of living in a real way. Business personnel are in business to make a fortune, however they must, even if it means starving their labor elements.
No attempt will be made here to prove the assertion, but lower Minimum Wage rates develop into higher Social welfare costs. It is equally relevant that Business leadership insist Labor must bear such Social welfare costs, not the Profits of business. This is simply another case of Business refusal to bear the total cost of Labor employment, another more convoluted denial of Minimum Wage. Business trys religiously to hide and avoid payment of the total costs of labor employment, in the interest of higher Profits--which translate into a higher standard of living for themselves.
Would a higher Minimum Wage allow these Workers to bear the full cost of their participation in the Economy? No, it will not! The labor costs which Business insists on avoiding will never allow for their personally-provided self-support. Will it vastly reduce the Social welfare costs which the entirety of the labor force bears? Almost Dollar for Dollar--another assertion not proven here.
The actual truth is suppression of the Minimum Wage is nothing but government welfare for Business, realized as a government welfare program for the wealthiest class of Participants in the Economy. lgl
