Raising minimum wage raises poverty—we need job growth
Raising the minimum wage has been tried before. It does not give us better quality of lives for long, it does not lead to economic justice, it does not close the gap between the rich and poor. It will lead to inflation. Companies will raise their prices to pay for higher wages and maintain their profitability. Wages will not go far as prices for food and gas go up as well. Even with a pay increase we are still at a starvation wage. The middle class who do not see wages increase just find their standard of living hit even harder. Essentially, raising the minimum wage without growing the economy just puts raising the poverty line up and the middle class closer to it. Raising the minimum wage will hurt small businesses. The labor force becomes too expensive and small businesses are not able to compete on prices losing customers to larger corporations. Small business will be force cut back on benefits, hire fewer employees, or go out of business. Larger companies will continue to outsource jobs where they can find cheaper labor. People seeking employment will find fewer jobs available. Let’s stop trying to solve the problem with the same tried and failed fixes.
We must try more innovative ways to improve our economy and people’s lives. There are other solutions that will lead to greater economic justice. Yes, we need higher wages across the lower and middle classes. One of the best ways to get higher wages is JOB GROWTH. When employers have to compete for employees they will offer higher wages, better benefits, sign-on bonuses, job training and whatever else they must to be the employer of choice. When jobs are created, there is more to go around and we all experience greater abundance. We also need to close the wage disparity between the executives and hourly workers. We need to incentive companies to adopt conscious capitalism practice such as a PAY RATIO where the highest salaried executive and the lowest earning worker would be set. We can follow the example of Ben and Jerry’s to see corporate success can be achieved at a ratio of 5 to 1. Greedy executives may not be willing to give up having six mansions, so perhaps they will find a 20 to 1 ratio more palatable. It is still a drastic improvement from the current ratio of 500:1 or even higher. Instead of offering tax breaks to major corporations who are paying low wages and outsourcing jobs, we can incentive EMPLOYEE OWNED corporations where employees are vested and share in the company’s success. Let’s establish WORK COUNCILS in large corporations that are the greatest violators of low wages to ensure employees have negotiation power to push for higher wages when it is economically feasible for a company and they can directly influence business decisions to avoid massive layoffs aimed solely at increasing profitability. Instead of pushing legislation that indiscriminately hurts everyone, let’s support practices that benefit everyone and improves our economy.
First, research the idea of a “Universal Basic Income” or some call it a guaranteed income.
The idea is that Baby Boomers (born 1943-1960) with wealth and higher incomes should be taxed so that they give up a percentage of social security and they have to pay more for health insurance because they can afford to pay. Higher incomes lose 100%. As income goes down the percent received goes up.
This revenue gain is offset by a UBI for people based on income. The amount might be as low as $2,000 per year per person. The purpose is to increase money in the hands of consumers to spend. Instead of increases wages or trying to increase jobs, those are not going to work. Robotics and algorithms are going to put more and more people out of work.