Wage Inflation and the Problem With Minimum Wage Laws
By Lance Winslow
Hasn't anyone ever studied economics 101 or run an actual business? That is the question I ask myself when I hear of government legislators attempting to dictate wages in the free-market. Of course, legislators have ulterior motives namely; promising people higher pay is a way to get more votes; and, if people make more money, they pay more taxes which grows the size of government and increases the power base of politicians. But what happens when wages are raised?
It's simple really the price of everything goes up. Food costs, carwashes, restaurants, and anything you buy from a retail company or services company, as those companies have to charge more to cover those increased costs. But you say; "well, if they raise the prices too much, I won't shop there!" Right, power to the consumer, good for you, except for one thing, if you don't shop there and others also stop shopping there then the company or small business will go out of business or close stores, thus, fire those employees who now will rely on the government for their basics, and so taxes go up too. When taxes go up you have less to spend, even though the prices of everything have increased - result you have less money, fewer people are working, less tax base, so the government goes into debt or raises taxes again in a vicious downward spiral - happy so far?
There was an interesting segment on ABC Eye Witness News Channel 7 in Los Angeles lately titled; "Deal Reached to Hike California Minimum Wage to $15 an Hour" on March 26, 2016 which stated; "
"California legislators and labor unions on Saturday reached a tentative agreement that will take the state's minimum wage from $10 to $15 an hour, a state senator said, a move that would make for the largest statewide minimum in the nation by far. Sen. Mark Leno, D-San Francisco, who stressed that the deal was not yet finalized, told The Associated Press the proposal would go before the Legislature as part of his minimum-wage bill that stalled last year. Leno said the deal would avoid taking the issue to the ballot. One union-backed initiative has already qualified for the ballot, and a second, competing measure is also trying to qualify."
It seems to me that government politicians should not be allowed to serve in the government unless they've run a small business or have taken a few basic economics classes, and I don't mean from silly socialist professors at the University. Please think on this and vote appropriately.
Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. http://www.WorldThinkTank.net - Have an important subject to discuss, contact Lance Winslow. Lance also writes eBooks on all sorts of topics including this one, check out the selection.
Article Source: http://EzineArticles.com/expert/Lance_Winslow/5306
http://EzineArticles.com/?Wage-Inflation-and-the-Problem-With-Minimum-Wage-Laws&id=9365145
ไม่มีความคิดเห็น:
แสดงความคิดเห็น