Thursday, February 14, 2013
Minimal Wages
The President thinks we should have a $9.00 minimum wage which will hereafter be indexed to inflation. The Repubs and corporatist Dems say no way. We will lose more jobs if that is the case. One telling indicator was the fall of fast food stocks the day after the SOTU. Of course virtually every study done on this issues concludes the economic disruption will be minimal. When the wage is increased the doomsday scenarios never seem to play out the way conservatives have scripted them. Even the most unskilled jobs available, from burger flipping to nail decorating will continue to be done whether the workers are paid a living wage or not. The increase of a few pennies for these goods and services will be offset by the ability of the minimum wage slave to actually enjoy some of the goods and services their labor provides. I think the right's war is not against the minimum wage per se, but the trickle up effects it will generate. Today's $9.00/hr. worker will demand more compensation, as will everyone who punches a clock. That could result in some serious income redistribution. Ironically, all this new minted purchasing power will be spent on goods which will increase corporate profits. Everyone will benefit, so what's the problem.
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