Minimum Wage + Inflation

April 21, 2015

Some thoughts, un-rehersed and unplanned:

It always comes back to poor governance. They print more money, then give themselves raises, they force employers to pay a certain amount.

Inflation is the result of the govn’t printing more money to keep the economy afloat, which defla
tes the value of the currency. Inflation drives prices up which causes businesses to raise their prices, but they are not raising the wages of their employees at the same rate. And they will not do it unless they’re forced to.

Have you ever heard of govn’t officials giving themselves 21% pay raises? Yes, you have.

Deleting the minimum wage is a better idea and here’s why: If there are no govn’t controls on how much a business can pay, the business will immediately drop the wage to a can of pop and slap in the face. Unfair, we all say, but no, completely fair. People cannot afford to work for such crap wages and so they will quit first chance they get at better money. This creates wage competition between employers who are fighting to get and keep employees.
Those who accept low wages are going to be students, transient or just plain dumb, and the employers will feel the effects of that.

Those who seek better employment will have to improve their employability, which means getting actual monetizable skills instead of a 5 year degree in the Humanities or a masters in the social pressures caused by the average rectal temperature of the three-toed sloth.

When the government steps in and forces businesses to do something, the business will only do that forced something. There is no need to react to the economic pressures because the pressures of the law are stronger or more appealing.

So, inflation driving up costs has no impact on wages because the govn’t doesn’t allow it.

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