4 votes

(first draft) Yet Another Argument Against Minimum Wage Increases

(This is Pulitzer-level shit I'm laying down here so listen up derps.)

The minimum wage is a hot topic right now, mostly among politicians, poor people, the nouveau riche and the former middle class. As a wage slave grunt I would like to speak for all the poor people, if I may, against an increase in the minimum wage. Because you see, it's a matter of simple competition.

The proposed increase in the minimum wage is from $7.25 to $10.10 per hour - a 40% increase. This would be for entry-level positions most typified by the 'fast-food' industry, so we'll use that as our example. While I'm currently working at the $12 per hour level I have been a $10 and a minimum wage employee (when it was $5.75) so I can offer comparisons between each.

One thing most prevalent in the existing pay scales is the amount of heavy lifting. $10-per-hour employees do more lifting than $7.25 minimum wage employees. They face a greater risk of injury and they have less downtime. They also don't have as much access to free food. If I was working a $10 per hour job and saw that I could make the same $10 per hour doing a bunch less lifting and risk of injury I'd jump at that opportunity.

So if I were still working a $7.25 per hour minimum wage job, I might applaud the increase to $10, until I realized that there would be a lot more new competitors for my job. Of course, a lot of $10 per hour workers are working towards more than a paycheck. They may be trying to learn more about an industry at an entry level. So they will stay in their harder and higher labor $10 position for that increased benefit.

Ultimately this might help them, as their loyalty pays off when they are offered an unexpected pay increase. But the temptation to take a lower-skilled job for the same pay increases, all the while ...

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Dear Mr Obama: I work for minimum wage. And I don't want a raise

Dear Mr. Obama,

As a low-wage/low-skill worker, I have been following the national debate about increasing the federal minimum wage with great interest. And I have to say: please don't give me a raise.

You see, I've worked for $10 per hour and for $12 per hour and for $7.25 per hour. And there is a vast difference in the amount of and difficulty of work at the different pay levels...

Don't feed the pandas. Ever.

+1

for that opening line.

Now I'll read the rest.

Well thanks for that, but...

what I'm trying to explain is that slightly-higher paid people are likely to pursue lower paid jobs that now pay the same amounts which will increase competition for lower-wage jobs.

Don't feed the pandas. Ever.

got it

I have no argument.

Great. Now help me write this post.

I'm kinda funky right now - but my argument remains the same. I can't argue with that. Minimum wage increases suck.

Elaborate.

Don't feed the pandas. Ever.

I promise too expound

tomorrow, when this amber beverage has lost it's effect.

And, I hate typing.

Ale - me too. While I'm on its effects...

I would add that to do the same job for a greater pay is great. But to know that another is chasing the same pay for lesser work is to be chased, isn't it?

Don't feed the pandas. Ever.

When I lived in Edmonton

McD's openly advertized $14 an hour and the dollar was just about at parity with US denomination. Edson, AB a cheaper place to live, was advertising $14 something. Wages weren't driven up because of minimum wages, they were driven up by demand for labour. Raising minimum wage only decreases the number of people employed, and the glut of cheap labour lowers wages overall. Needing to pay $10hr means no training unskilled workers worth less than $10 and no chance for advancement. It also means easy jobs, like answering an occasional phone call or manning a slow reception desk while you study disappear and you may have to pursue something more taxing just to get by.

Most of my great reading was while waiting for something else to

happen.

Thanks.

Don't feed the pandas. Ever.

Thinking about this for a few days, wonder if anyone else

is coming up with my same conclusion (yet to be revealed)

update: more info.

Don't feed the pandas. Ever.

Bob Murphy Made This Same Argument On The Tom Woods Show

Check out the January 23 episode (not the February 13 episode):
http://www.schiffradio.com/pg/jsp/verticals/archive.jsp?disp...

___________________________________________________________________________
"Bipartisan: both parties acting in concert to put both of their hands in your pocket."-Rothbard

Well I listened to it, and he starts to go down that road...

He does mention how more people, like college kids over the summer might decide to get a minimum wage job at $10 because it's worth it at that rate...

Don't feed the pandas. Ever.

That's what I'm looking for! Thanks bunches.

:)

Don't feed the pandas. Ever.