It’s basic economics people

Mar 07, 14 It’s basic economics people

We don’t understand these so called leaders and political pundits pushing for a minimum wage increase of $2.85.    Where do they think the money is going to come from?

It is extremely concerning that the White House, Obama supporters, politicians and even reporters don’t understand basic economics

It is because of this concern that we wanted to see how easy it was to comprehend the simplicity of the minimum wage and basic economics.  For our research we simply searched “Minimum Wage” and found the Wikipedia definition.

It included something very interesting.  It states “According to the model shown in nearly all introductory textbooks on economics, increasing the minimum wage decreases the employment of minimum-wage workers. (David; Krueger, Alan B. (1995). Myth and Measurement: The New Economics of the Minimum Wage. Princeton University Press. pp. 1; 6–7.)

Raising the minimum wage equates to a $114.00/week increase.  Over 52 weeks that’s $5,928.00.  Easy for a big company to absorb but what about a small businesses?  For a small company that is looking to expand or just pay the bills? That is a lot of money.

None of the politicians or columnists who are advocating this increase are giving solid answers to where the money will come from and it is confirmation the elected officials who are advocating this raise are incapable of making decisions on your behalf as they lack an understanding of basic economic principles.

The answer is simple, for big companies, raise prices.  Just raise the price of a Big Mac by $0.25 and make the middle class pay for it.  But for small or start up businesses it could mean scaling back, lay-offs or even closing.

How about we invest the $2.85 per hour that the politicians (who are looking to get re-elected in 2014) are proposing into education so that individuals who are dependent on minimum wage jobs can learn new skills and have options if the job they don’t like doesn’t pay enough.  Talented workers are hard to find.  $5,928.00 can go a long way toward learning a new skill or even mastering an existing one.

Minimum wage jobs are never have been or never will be the type of jobs you are meant to live on.  And even if someone does work full-time at a minimum wage job what about hard work and loyalty?  I can’t believe that all companies that hire individuals at minimum wage do not give raises.

This is supposed to be a country where hard work pays off and is rewarded.  Nothing was handed to our immigrants ancestors that came to this county.  We need to make sure people still know that they have to earn a raise and then experience the great feeling of being rewarded for a job well done.