Recently, it was reported in the Daily Local News:
Local congressional members and congressional hopefuls are split on the debate of whether to raise the minimum wage to $10.10 an hour.
On Wednesday, President Obama signed an executive order raising the minimum wage for future federal contract workers to $10.10 an hour, much to the dismay of many Republicans who say that raising the minimum wage is not the best way to fix the economy.
Candidate for the 16th district, Democrat Tom Houghton, recently delivered a petition with nearly 500 signatures to U.S. Rep. Joe Pitts, asking him to support a federal minimum wage increase to $10.10 an hour.
Houghton, who is running for Pitts’ seat, said in the petition that he supports “the growing movement to raise the minimum wage to about $10.” He delivered the petition to the Kennett Square office of Pitts on Monday. Read more…
Raising the minimum wage is for the purpose of buying votes from low information voters… nothing more. Today’s minimum wage of $7.25 has relatively the same value as the 1955 minimum wage of $0.75.
This is the short answer why: Take the starting wage for fast food workers from $7.25 to $10.10, and the bank cashier starting at $10.10 now wants $14.07, and the warehouse worker that did start at $14.07 now wants $19.60. The ripple effect is wages go up for everyone, but so do costs. It is not just paying more for your Big Mac, it is paying more for everything… including higher taxes to pay for the increases in salaries.
It doesn’t matter what the minimum wage is. Over time, the value of the minimum wage increase is lost, as it has always done since the minimum wage was created. In a few years, when everything inevitably rebalances, the Democrats can make an issue out of the minimum wages again… and the cycle of buying votes continues.
“Fixing” the minimum wage has never fixed anything, because the problem is not a problem… it is an economic reality. The real issue is an entire group of people being told they deserve making a living, and being able to raise a family, on a minimum wage job, flipping burgers at McDonald’s.
The new buzzword these days is “income inequality.” It is the rallying cry for the “redistribution of wealth” crowd, but the net effect will be a shared scarcity as those who succeed are punished for success.
Instead of being encouraged at working to move up the economic chain, people are encouraged not to aspire. President Obama and Tom Houghton will take care of everything for you, all the while chanting the Marxist mantra: “From each according to his ability, to each according to his need.”