The stated goal of proponents for a higher minimum wage is to help struggling families, according to Fight for 15, the union-sponsored group supporting fast food strikes around the country. In 2012, however, 55 percent of all minimum wage workers were between 16 and 24 years old, according to the Bureau of Labor Statistics. In other words, the majority of minimum wage workers are young people who are unlikely to be breadwinners for a family. Even with that in mind, raising the minimum wage is an ineffective way of trying to help people because the concept is fundamentally flawed. Every worker provides some level of value to their business — otherwise they wouldnt have a job. But not every worker is equally valuable to an employer. By prohibiting employers from offering job at wages less than a mandated and arbitrary rate, low-value work will often not be offered. This is despite the fact that many people would prefer that job for the below-rate compensation rather than settle for existing alternatives. If the point of the minimum wage is to increase average wages, it hasnt accomplished its goals. Inflation-adjusted median weekly earnings are down 3 percent since the recent federal increase in the minimum wage, according to the Bureau of Labor Statistics, and this is even after prohibiting wages below a level. With fewer jobs after the recession and lower average wage rates, you have to wonder whether the minimum wage is an effective tool for accomplishing its goals. michigancapitolconfidential/19377
Posted on: Tue, 19 Nov 2013 18:54:13 +0000
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