This video blog from Peter Schiff reminds me of a post I made a while back:
It goes against every ounce of logic in my being to think that a minimum wage is good for people or an economy, yet people in Congress and even everyday folks on the street seem to think it’s a good idea. Well, let me explain in very clear terms MINIMUM WAGE IS BAD FOR THE ECONOMY.
The first thing that will happen when this new minimum wage bill goes through, if it does, is the people who aren’t worth $7.25 an hour will BE FIRED. Then, the real damage happens.
If you are a minimum wage proponent, I would like to ask what a fair wage should be. Is it $7.25 an hour? I don’t know anyone who makes that and everyone I know is complaining about how little they make- maybe it should be $10 an hour like it is at most Wal-Marts. Not good enough? Maybe it should be $20 an hour- that would make a lot of people happy- it’d be a pay raise for a lot of people reading this post (I like to dream that millions of people are reading).
I have an idea- let’s make the minimum wage $100 an hour- that would make 98% of the people in the US happy. What would happen with such a high minimum wage? Everyone would be fired- everyone except for the very necessary employees. Then, companies who couldn’t afford that would raise their prices, so the consumer gets to bite the big one. Inflation would skyrocket and there would eventually be 70% unemployment and nothing being produced in this country.
Well, if this progression is reasonable to see happening if the wage was upped to $100/hr., is it so far-fetched to see how raising it by a small percentage would move slightly closer to the doomsday scenario described above?
Artificial regulations on a free market ALWAYS hurt the market in the long run. I feel like most people need to go back to Economics 101 and get over this blind pseudo-altruism that helps them cope with the fact that they’re driving their Beemers over the raggedy blanket of some smelly-ass bum sticking out his hands for some spare change as long as it’s more than a five dollar bill or some food as long as it’s not Italian.
People complain that they can’t live on $5 an hour. Well, I have an idea- get another frickin job that pays more. Or, I got it, maybe pick up a skill, like smiling, and request more from your fat minimum-wage-paying boss. But I don’t buy that people can’t live on $5 an hour. People can live on much less than that- 3 BILLION humans live on less than $5 a DAY- they just eat less and have flies all over their faces. My point is that yes, people can live on $5 an hour- but they won’t be able to eat at Benihana’s every night or support their smoking habit while putting up three kids.
And, come to think of it, who are these people making minimum wage? They’re typically kids in high school (with no one to support), immigrants (I won’t get into the legality of these peeps), or lousy bums. In the case of the kids- they’re working for school or extra spending cash. In the case of the immigrants- they may need to work to support a family, but if they’re hard-working enough and can keep a job, they’re going to get a raise every year no matter what job you’re doing- eventually making a great deal more than minimum wage. Bums who can’t keep a job don’t deserve money for doing nothing.
I worked at plenty of jobs making minimum wage and I never complained about getting too little- I just acquired the skills and got a better job. It was a great learning experience. Entry level jobs aren’t meant for permanent employment- that’s why they’re called “Entry” level.
To sum up-the people making minimum wage can get by or make some sacrifices to move up in the world. Minimum wage hurts the economy by squeezing small business owners and pushing inflation, which just makes the new minimum wage outdated sooner. And a lot of people need to go back to economics class.