The Minimum Wage Myth Debunked

If you believe what the Democrats and Unionists say about the minimum wage, nearly all Americans are making $7.25 per hour.

Nothing could be further from the truth.

Fortunately Republicans argue raising the minimum wage to $10.10 per hour arguing that it “would damage the nation’s fragile economic recovery. Several GOP lawmakers took note of fresh data released Wednesday indicating the economy grew at a sluggish 0.1% in the first quarter of 2014.”

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Most people making only a minimum wage salary are mostly in transitional work. They are mostly young people with little work experience. They jobs they work are not highly skilled.

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The latest statistics support these facts as a CNSNews report shows:

“A majority of the Americans who worked for the minimum wage or less in 2013 were 24 years old or younger, according to data released by the Bureau of Labor Statistics, and only 0.8 percent of American workers were 29 or older and worked for the minimum wage or less.

“A supermajority of 67.5 percent who earned the minimum wage or less in 2013, according to BLS, worked in what the government calls the ‘Leisure and Hospitality’ industry. This includes restaurants, bars, hotels, theatres, amusement parks and other facilities catering to people pursuing recreational activities.

“Workers who get tips on the job can be paid less than the legal minimum wage if their combined wages and tips exceed the minimum wage.”

For those who aren’t very good in math, .8 percent is less than 1 percent.

Many people who work in the hospitality industry supplement their minimum wage pay with tips. Some of them make big bucks.

“The Congressional Budget Office reported earlier this year that increasing the minimum wage to $10.10 by 2016 ‘would reduce total employment by about 500,000 workers.’” That means, for so many low information voters, nearly a half million people would lose their jobs. Of course, in the end the job losses would be blamed on Republicans and George W. Bush.

Are there stories of people working multiple jobs to make ends meet? Yes, there are. Are industries stingy with hiring and paying higher salaries? Yes. The problem lies, not with the minimum wage, but with maximum taxes and regulations. Forcing employers to pay more for work is a tax.

The solution to higher wages is a free economy where employees are in demand because the economy is growing. Politicians believe they can fix an economy by passing a law. If that’s true, then why not pass a law that says, “the economy is fixed” and move on?

Here’s a breakdown of the industries where there are the most minimum wage workers:

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