Should We Raise the Minimum Wage?

Credit: obamacartoon.blogspot.com

The debate has raged for the last 2 years, should we raise the minimum wage or not?  Among those who are championing the proposed hike to as much as 15 dollars an hour is those whom say they cannot afford to raise a family on $7-8 dollars an hour. So let us examine what the statistics say about this.  According to the Bureau of Labor Statistics: "Minimum wage workers tend to be young. Although workers under age 25 represented only about one-fifth of hourly paid workers, they made up about half of those paid the Federal minimum wage or less. Among employed teenagers paid by the hour, about 12 percent earned the minimum wage, compared with about 1.2 percent of workers age 25 and over."

---

So let me get this straight. We are going crazy doing verbal and intellectual somersaults over 1.2 percent of adult workers? 

According to the  Indianapolis Star, The minimum wage isn't working for Chaneice Coleman. "I have two kids of my own, and I've got bills to pay," said Coleman, who now works at another fast-food restaurant. (not McDonalds) "Getting paid $7.25 an hour is not cutting it."  This quote and article in the star refers to the recent ruling against McDonalds. So, that is my fault? I am failing to understand why we are considering raising the minimum wage to 15 dollars an hour. Many skilled workers make $13-$15 an hour, and you want unskilled workers to make that?

In the world of economics it is very simple, you are what you eat. That is you are worth what you can produce. The 3% of adult workers who are making the minimum wage, do not have any skills. Furthermore, many of those whom are unemployed, cannot find work because they are not worth $7.25 an hour.  You might say that is harsh, I call it a dose of realism.  The purpose of minimum wages jobs is to allow inexperienced workers to gain experience. Once the worker has the requisite experience, he/she can move on to a higher paying job. Those workers, like Ms. Coleman, who say they need a $15 dollar an hour wage to raise their family, are unfortunately not skilled enough to demand those kind of wages. In addition, if the MINIMUM wage is set at $15 an hour, what happens to the incentive to better ones self? Well, the incentive to gain more skills runs out the door and the incentive to become educated is driving the getaway car!

But wait!  Things are getting worse in this country! We must stand up and fight against the greedy business owners!  Wrong again. According to the BLS: The proportion of hourly paid workers earning the prevailing federal minimum wage or less declined from 5.2 percent in 2011 to 4.7 percent in 2012. This remains well below the figure of 13.4 percent in 1979, when data were first collected on a regular basis.

Here is my final answer. We should not raise the minimum wage. If we do it will price young and inexperienced workers out of the market and will not allow them to gain the necessary experience they need to garner higher wages.