I have received several emails wanting to increase the minimum wage. I understand the desire to improve the lives of those in poverty; however, in my opinion, increasing the minimum wage will do more harm than good.
Increasing the minimum wage is based on the assumption that increasing wages will allow the poor to access more goods and services; that poverty is addressed by increasing the ability of the poor to consume. While it may have a short term benefit, the long term consequences are all negative.
The solution to poverty, if one only sees the world through the lens of consumption, is to help the poor increase their consumptive capacity by increasing their access to more goods. One way to do so is to force employers to pay the poor higher wages. This approach is a pretax wealth redistribution arrangement. The government tells the employer how he will spend his income and is in fact a hidden tax increase. However, poverty is caused by lack of production; not lack of consumption. Poverty and its accompanying scarcity is not solved my increasing the ability of the poor to consume. It is solved by increasing the ability of the poor to produce.
Prosperity is a function of productivity. As an employee becomes more skilled and valuable, that employee can demand a higher wage. There are over 1,000 high tech jobs in Idaho, right now, that pay $32 an hour or more. These jobs are not filled because of a lack of skilled employees.
A minimum wage job is not a career. Minimum wage is only supposed to be a temporary, short-term job. Raising the minimum wage will make it harder for the young and the untrained to gain valuable work experience. Also, the director of the Idaho Department of Labor indicated that the market-driven minimum wage in Idaho today is closer to $10.50 and hour.
A second argument to increase the minimum wage is local control – Should the state preempt cities from passing ordinances to increase the minimum wage? I am not sure; however, why should businesses and employers throughout the state have to engage multiple cities to defeat minimum wage ordinances when minimum wage increases does little to improve the lives of the poor. I feel that those that propose increasing the minimum wage are harassing businesses and employers. Is this what cities are suppose to do?
Moving forward with win-win solutions: I do agree with those that want the minimum wage on one point – we both want to help the poor increase their incomes. Increasing the minimum wage is a win-lose approach. A win-win approach should be sought for and is possible.
The third way would include helping those in minimum wage jobs access job training, helping them connect with local employers that need skilled workers, and helping them feel empowered and able to reach their personal goals. A true win-win solution that benefits the minimum wage employee, the employer, and the state economy is to focus on increasing individual productivity.
Great points. I love the win/win approach that gives access to job training and offers benefits to all involved.
Steven-Mr. Dickerson wants minimum wage. Are there programs available to rural Idahoans to increase their skill sets? Are those skill sets employable in the rural settings or would they have to leave? In rural Idaho, where those “rich” employers who employ minimum wage earners are just hanging on to their businesses in many cases, a rise in minimum wage could very well mean the owner would have to shut their doors and there would be no job at all. Employers are struggling to keep their doors open, too. Rural Idaho needs revitalization.
I agree with this point of view…
I too agree with you in theory. In practice however, the result of not applying the Win-win solution has resulted in Idaho still having more minimum wage jobs than any other state (as a percentage of the work force). Our district is even worse! In our rural district there are no $32 per hour jobs available. Local employers even tend to hire people with ties to the area so they will not be able to quit when they realize that there is no way to escape the low wage bracket no matter how productive they have become. We have no retraining programs, or educational programs past High School. Do you wish to govern a district of gost towns? Lets fund some oppertunity makers instead!
I agree also, but the person that can be trained at the lower wage has to have the will to learn and produce more so you can pay more, That’s our unfixable problem.
I agree with what you are saying. Minimum wage are both entry level and also a training ground for work ethics since very few grow up with these taught at home. They are not meant to be a career.
As for the cities that are stupid enough to do this on their own, they will move business out of their cities at a rate that is beyond comprehension. Local business will not be able to compete but they will have a lot of employs that they can not afford to choose from.
Prosperity is a function of skill levels, which in turn, leads to productivity. Mandated minimum wages are artificial pay scales which trap too many into thinking, they can ‘make it’ on this kind of salary. Minimum wage jobs were NEVER meant to be the ‘end all’…but a ‘bridge’ to bigger and better jobs, education and skill sets. No matter how much minimum wages are raised, they still will NOT ever pull anybody out of poverty…they will just enable a very large population to ‘hang on’, with no incentive to advance themselves with better skill sets or more education. I say NO to mandated minimum wages. Let the markets’ demands play a larger role in wage determinations.
It seems that a lot of today’s kids are being raised without being taught the work ethic of being worth more than you are paid, so that if they find another job, their present employer will offer them a higher wage if they will stay.
Sometimes, when I used a public bathroom, and there was an attendant cleaning it, I would apologize to them for the mess some men leave when they overflow the toilet. One time, I apologized to a VERY YOUNG man, and he got a big smile on his face, and said, “I look at it as job security.” That was many years ago, and I am guessing that the guy is very successful at whatever he chose to do.
The minimum wage interferes with free enterprise economics. If a job is worth more to an employer, he will pay more. Citizens need to focus on being skilled, reliable, responsible, trustworthy, educated, and courteous. Those personal traits increase the likelihood they will be hired and keep their job. As they acquire more skills, experience, and knowledge, they become competitive for higher wage jobs. It is also important for employers to create career pathways for deserving employees, e.g., by allowing them time to pursue necessary training so they can compete for advancement opportunities.
I have to say I do not agree with this at all. To say that the problem is not minimum wage but access to more goods is crazy. If you do not make a living wage, it does not matter if you have lots of goods you can’t afford to buy them. More goods could open up more jobs but with Idaho a right to work state, employers do not have to increase wages because they know people are afraid they will get let go if they demand a raise, so they do not ask. I worked for a big Bank for many years (WellsFargo) and when I went in and asked (not demanded) for a raise I was told that Idaho was a right to work state and that if I did not like my job I could leave. I was always in the top 5% of the personal bankers in the state of Idaho and always made my goals . My manager always tried to get us the raises we deserved but the upper management in Idaho Falls knew we had nowhere to go in Salmon they knew we were not going to quit.
I think Senator Thayn should have to feed his family on Minimum wage. He talks about minimum wage not being a career wage but a temporary wage. For many people who are able to go to college or a trade school that may be the case but for many Idaho residents they may not have a choice and will have to live on minimum wage forever and it is not a living wage for sure. Every time I hear a politician talk about how raising the minimum wage is not the problem it is usually someone who makes a 6 figure income and has great insurance and a fabulous salary for life even when they leave office. I would like to see the politicians of America have the same income & health care that most of us have and see how fast they would do something about it.
It all boils down to money these politicians cannot relate to the common man and they forget once they get their fancy jobs about people trying to make ends meet. I do not usually respond to these things but after watching the republican debate last night this just did not sit well with me today. The Gov of Ohio was the only one that acted like a grown up in a professional job and is the only one with any sense that is running on the republican ticket. Why don’t we try paying people a living wage and see if their self-worth goes up and see what happens to our state. Give me a break Mr. Thayn you do not deserve your salary.
Thank you Steven for your views. I concur with them. What is your positon on an ARTicle 5 convention?