An Argument against the Minimum Wage Hike

The fervor for a hike in the national minimum wage is picking up steam as RINO Republicans like Mitt Romney are jumping on board.

Is it just me? I thought Romney was a brilliant businessman with a keen economic mind.

Could he possibly be signaling that another run at the White House is being considered? Why else would he pile on the populous political bandwagon?

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With all the fuss over this issue, one would think it affects a large portion of the workforce.

Well, here are some statistics. Approximately 1.6 million people will be “positively” affected by the minimum wage, to start. There are about 318 million people in America today. Let’s just say half of them are of working age.

So without even doing the math, you can plainly see that we’re not even talking about a sliver of the overall working age population.

Now of these 1.6 million, a third, or about half a million are kids between the ages of 16 and 19. You know those kids. I sure do. Those with after school and weekend jobs (maybe, if their lucky), living at home with no expenses and virtually everything provided for them.

So now the number shrinks to about 1.1 million. Economic reports are that Obama’s minimum wage proposal will extract another half a million jobs, either through forced firing or non-hiring. That only leaves us with a little more than half a million working age adults. All this national furor over half a million people.

But some might say, these are human beings – they are fellow Americans. Don’t you care? Don’t you want to help? Don’t they deserve a living wage?

To that I would say that our hero veterans are also human beings and fellow Americans. Funny, but I don’t hear the same uproar, the same outcry of injustice regarding the Veterans Administration intentionally killing them off, so don’t talk to me about selective compassion.

Now, I’ve heard and read online, an argument where raising the minimum wage had no negative effect at all. Many on the Internet have cited San Jose California and their own autonomous wage hike to $10.15 per hour. Wow! That’s impressive.

What these “proponents” don’t tell us is that the hike was all of 15 cents, from $10-$10.15. Hardly even noticeable.

That’s like looking at a TV for $500, leaving the store – going back the next week and finding it priced at $507.50. No big deal, right?

So disregard the San Jose claim that liberals love to throw around.

And by the way – the Bureau of Labor statistics show that the average hourly rate for San Jose “food service” workers in 2012 was $11.32. The hike was purely political and for unions that base contract pay off a percentage above the minimum wage.

The point is, that if a town or city or a state wishes to institute a minimum wage, if it is within their states constitutional purview, they have the legal right. Whether it’s morally right (which it isn’t) is another story.

But the feds don’t see the pitfalls of mandating a San Jose minimum wage on a place like Holmes County Mississippi.

What’s wrong with that? Would it not be good for the folks in Holmes County?

Putting aside the emotion, labor is a commodity, just like the TV. Remember that $500 television? Well it’s not $507.50 as in San Jose. It’s now $695 in Holmes County Mississippi. That’s the difference between $7.25 per hour and $10 per hour. Can you still afford it?

It’s an increase of 39%. Now – look at any product or service you pay for and tell me you’d be willing or able to pay an additional 39%. A gallon of gas today averages about $3.63. Multiply that by 1.39 and it’s now $5.05 per gallon. Groceries: the national average for family of four is $940 per month. Multiply that by 1.39 and it’s now $1307.

No reasonable person would think that the average household could absorb that increase. Why then do we think the average business could? And businesses that typically hire minimum wage workers run on razor thin margins as it is.

All this for about 1% of the working population. Maybe not even that.

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