Much is being said about the benefits of raising the minimum wage, with Democrat politicians and their minions claiming no downside. Not true.
The problem with the minimum wage debate is that both sides are right. Raising it will help a very small number of people who work at the minimum wage level. It is not Scrooge-ish to note that many of the minimum wage workers are not breadwinners. They are students, seasonal workers, second family income workers, people who do quasi charitable work and an array of other part-time employees.
Raising the minimum will put a modicum of money into the economy, but not enough to register any discernible economic benefit.
The positive impact is potentially outweighed by the negative effect. It is also true that an increase in the minimum wage will hinder new job creation, and actually reduce the number of employed. This is not theory. It is established historic fact.
In the aftermath of any wage increase, many employers compensate by reductions in force or eliminating plans to hire. It serves to retard future pay raises of all employees. These counter actions tend to nullify any alleged economic benefit.
Obama & Co. offers the increase in the minimum wage for political benefit, with exaggerated economic benefits. The President may not be responsible for the economic crisis of 2008, but he is most certainly responsible for the longest and slowest economic recovery American history. The minimum wage is just another example of his deceptive smoke-and-mirrors policies that characterizes his Chicago Machine style governance.
Certainly, there may be times to debate raising the minimum wage. Those are times of growth and low unemployment. This is not such a time. The number one priority has to be stimulating private sector growth and job creation. Diddling with the minimum wage now is a cruel election year ploy, and is counterproductive to the overall health of the American economy.
Minimum wage is a debate for another day – but then, this is an election year.
On The Starboard 