I live in a state where we have sent four of our previous six governors to jail. We have our problems and it would appear that our governor’s having good sense is at the top of that list. I am not sure what happens to them when they become the state’s top executive.
Our current governor, Pat Quinn appears to have the same problem solving ability and the last 7 of them. He is now beating the drum on the same subject as President Obama – raising the minimum wage. I am just flabbergasted at their apparent lack of understanding about this matter.
I am not an economist or a business expert but I do understand that the people at the bottom end of the economic spectrum, whoever they are, will always be there. No matter how much money the people at the bottom have, we will always have people at the bottom. They are there for a reason – right or wrong.
We can raise the bottom, but then the top will go up and everyone in between will be raised. Here is a simple example. If we raise the nation’s minimum wage to $15 an hour, the cost of everything will go up. The cost of a gallon of gas will rise to around $8 a gallon. Other employers will have to raise wages to retain highly skilled employees. Highly compensated fields compensation will increase dramatically.
When automobiles cost $75.000, people who make $15 an hour won’t be able to afford car insurance (which is required by law) let alone the car itself.
Let me demonstrate graphically.
|Current Pay Rate||$7.50||$9.00||$11.00||$15.00||$20.00||$25.00|
|$15 an hour minimum wage||$15.00||$18.00||$22.00||$30.00||$40.00||$50.00|
So to keep everything in proportion under the $15 an hour minim wage, people who used to make $25 an hour will make $50 – because of the market place. That is what employers will have to do to keep those skilled quality employees. Then they will be so much further ahead of the people who are now making $15 an hour. It isn’t fair, I know. Life isn’t fair and this is how free enterprise works.
I get this – AND I am not an economist. The only sense I can make of this, is that this is politicians are trying to placate the masses who work at minimum wage. It is a flawed concept and will not work. HELLO?