President Barack Obama has begun pushing for a raise in federal minimum wage. He has proposed raising it to $10.10 an hour. While to some this may seem like a good idea, in reality, and economics, it makes little sense.
An undeniable fact is that raising the minimum wage makes it more difficult for businesses to hire labor. During a time when our economy is struggling as much as it has been, raising the minimum wage not only would be ineffective, but also could produce very costly results.
Businesses are, in fact, in business to make money. That seems to be lost on many liberals who seem to think that businesses just appear out of thin air. However, it is the risk, hard work, and entrepreneurship of the American people who create businesses, which creates jobs. By raising the minimum wage, employers instantly have to increase their costs. To make this possible, only one thing can alleviate this problem. Raise prices, which in turn, effects YOU, the consumer. To offset rising labor costs, an increase in prices will be passed along to you.
A recent study suggested that only 11.3% of workers who would benefit from an increase in the minimum wage are in poverty. Many people who live in poverty do not work. Workers who earn minimum wage, generally, are not the main earners in the home either. Nearly half of all who earn minimum wage are under the age of 25. This would include high school students and college students who are working fast food stores while attending school.
The non-partisan Congressional Budget Office recently released a study which stated that an increase in the minimum wage would eliminate nearly 500,000 jobs. An idea, which is championed by those who claim to want to help those in need, will do the exact opposite. The people they claim to help, they do harm to. But in many ways, it seems that the desire to raise the minimum wage is to increase their voting bloc, and to paint those who oppose this as hating the poor and only looking out for the rich. Its pretty disgusting, actually.
In the end, the amount of money earned should be determined by the demand for the job. The compensation for services rendered should be based on what the market dictates, not lawyers and community organizers in Washington, DC.
