Minimum wage jobs

Michael Quinn Sullivan, 11 years ago

Well, first let’s recognize that a minimum wage job beats no job — which is precisely the situation too many folks face in other states. Texas has led the nation in job creation, and the “migration” numbers of people flowing here for work and opportunity say that we are doing something right — or, at least, better than the other states. We cannot rest there, though. Simply being “better than other states” isn’t sufficient, which I think is the point you are making. We need to make sure that the state unfetters the economy by reducing the drag of government on entrepreneurs. For example, the weight of unfunded mandates and business taxes give employers and job creators pause. The best way to let people soar from low-wage jobs is to not pile the weight of government on their shoulders!

Russell Withers, 11 years ago

And let’s also recognize that low wage jobs are only a starting point. They’re the first rung on the economic ladder. Not every job is meant to provide a living wage. Low wage jobs help young people gain experience and build a resume.

Michael Quinn Sullivan, 11 years ago

That’s a great point, Russell. There harder it is for people to get entry-level jobs, the less likely they are to climb the ladder of success!

John Colyandro, 11 years ago

Stuart:

Scott Drenkard of the Tax Foundation, writing a guest column for the Texas Tribune, concludes: “But if Texas wants to continue to see the growth and prosperity that have characterized the last decade, the margins tax has got to go.”

You can read his entire column here:

http://www.texastribune.org/2013/10/23/guest-column-margin-tax-holds-texas-business-back/

What do you think?

Thank you

Patty Gibbons, 11 years ago

Every business wants their employees to improve and grow, this only strengthens that business for competition and growth. The employee themself determine their wage, any wage, whether at minimum or higher. The employee determines their own living condition whether well or not. Businesses are in the business to profit, not charity, if we induce them to charity we reduce all wages and capitalisms real strength. Too many large businesses have given too much to this charity mentality, and living wage thinking to me falls into this category. Let businesses be a business of profit and the employee be the individual who finds the success that they want without cohercing a business to give it to them regardless. Capitalism does not and should not operate in this way.

Richard Bacon, 11 years ago

Kris Williams,

I can see the point you are making I think. Fundamentally I think you are suggesting that since the “working poor” continue below the poverty line, the tax payer must pick up the difference between a minimum wage and the poverty line. But the solution to the dilemma you point out is not necessarily a higher minimum wage. Some people would receive an advantage; specifically those whose wages are raised and the tax payer in the case of those whose wages are raised to the level to which the worker no longer receives subsidies in the form of SNAP, Medicaid, etc. But there are others who would be harmed by such a raise in the minimum wage law.

First, those jobs that can be consolidated or automated for a lower cost than paying a higher wage will simply disappear. The people holding those jobs will no longer have any wages at all. Thus they may receive not only SNAP and Medicaid, but other public assistance as well — again at taxpayer expense. Higher unemployment among the marginally qualified has always been an unintended consequence of raising minimum wage; at least in the short run.

Second, those businesses whose workers can be paid a higher minimum wage because the job cannot be consolidated or automated will simply pass the additional expense along to consumers. This means we will be paying more for food in restaurants and grocery stores; more for gasoline at the filling stations; etc.

When I entered the workforce in the early 1960s, the minimum wage was $1.25 or five (5) 90% silver quarters. In 1964 and later, the silver content of those quarters was reduced and then virtually eliminated. The current value of those same five pre-1965 quarters is $19.68. In other words, think about what $19.68 would buy today and that is how much purchasing power minimum wage gave us in 1964. The problem we face with purchasing power is not the level of the minimum wage, but the debasing of our currency.

But if we wanted to have a minimum wage comparable to what I had in 1961 it would have to be nearly $20 per hour. That sounds very good, but consider the unintended consequences of a $20 minimum wage on unemployment and the cost of goods.