Do you think that the minimum wage should be raised?  Or do you think that it is only good for making sure that people that work get paid at least that wage?  Should the minimum wage be raised?  Would it help?  Some think not.

I think that the minimum wage should most definetly NOT get raised.  Why?  Don’t I think that people deserve a decent wage?  Sure I do.  But raising the minimum wage isn’t the answer.  Think of gas prices as a minimum wage.  When gas prices go up, so does the price of everything else.  In the same way, if the minimum wage goes up, so does the price of everything else.  If the orange farmer has to pay his orange pickers more than the minimum wage that he currently pays, that extra expense has to get passed on to somewhere.

The farmer isn’t going to want to eat that extra expense.  Neither is the frieght company that delivers it to the warehouse.  And you can be sure that after it gets passed all the way up to the grocery store, they aren’t going to eat it.  So, who pays that extra expense?  We do.  The consumer.  So, if you don’t mind paying extra for everything that you buy, by all means raise the minimum wage.

Personally, I’d rather see the minimum wage gotten rid of entirely.  Our country has thrived on a capitalist supply and demand economy.  True supply and demand works quite a bit better than what we have going now.  For instance, Walmart pays more than minimum wage.  Why?  Because supply for even their more lackluster jobs is less than the demand.  There are more open jobs than there are workers.  Because supply and demand has worked in that way, Walmart pays more than some of it’s competitors to get more workers who will stay.

The same could work for our gas industry, however, we as a world population demand much more each and every day and as such, supply cannot keep up.  As a result, prices go up.

Next time you argue that the minimum wage should go up, remember that the guy who takes your money (or pumps your gas in some states) is likely being paid minimum wage.  The owner of the gas station will have to pass that extra expense on to someone.  And it will be you!

Categories: Budgeting