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Wage increase may not be fair or kind

As the election season unfolds, class warfare unfolds, along with equal pay and a higher minimum wage. It all sounds like a worthy idea — fair and, of course, compassionate to employees. However, there are lessons that have already been learned.
Dan Price, a 31-year-old CEO, decided to take the idea of equal pay and run with it. He decided that $70,000 per year was a salary level that would meet everyone’s needs, and his employees would no longer have the stress resulting from inadequate finances.
Almost immediately, like-minded businesses became clients, seeing how compassionate he was. To deal with this, 12 new employees were hired at $70,000 per year.
Soon his top employees were quitting, seeing less qualified employees’ salaries double or triple while theirs took a minor bump; seeing others with significantly less productivity rewarded the same as them.
Throughout the company, the difference between motivated and unmotivated workers grew. And his profits disappeared into the “fairness” abyss.
A wage is a reflection of your value to the company, unless you work for the government (where it is a reflection of your time in service and your GS rating.) Therefore, government requiring businesses to absorb a level of pay that exceeds the value of work being performed forces businesses to address the additional costs through fewer workers, higher prices, and/or reduced service.
It also affects the economy in the long run. The European economy is in the doldrums. Why? Christian Thinmann, a former top advisor at the European Central Bank, noted in the “Journal of Economic Perspectives,” “Jobs fail to be created in a number of (Eurozone) countries not because of ‘lack of demand’ as often claimed, but mainly because the wage costs are high relative to the productivity; social insurance and tax burdens are heavy; and the business environment is excessively burdensome.”
A politician’s promise for higher wages and jobs can’t be kept if employers can’t profit from paying that wage to its employees. Jobs will be either lost or not created. In some cases, the employer will use technology to permanently remove the need for those jobs. This will cause unemployment and welfare costs (taxes) to rise as more people search for jobs but are unable to find any at the higher wage.
This results in a low-wage employee going from low-wage to no-wage.
Minimum wage limits choices open to employers, prohibiting them from hiring employees regardless of the fact that both would benefit. It reduces the potential for the employee to accept a job at a lower wage to demonstrate his or her abilities.
To me this is neither fair, compassionate, nor should it be legal.
The claim by the government that increasing the minimum wage for low-skilled employees increases job opportunities is false; it reduces them. This is why teen unemployment is as high as 34 percent in some areas.
If there is a minimum wage, it should be a state issue (10th Amendment) because the minimum wage needed to live in a small rural community would not be the same as that required to live in New York City or San Francisco.
As a state issue, it should be thought through carefully, lest our businesses go out of business or leave.