Minimum Wage Increase or Hold Onto Your Wallet

Our "leaders" in Washington, while pandering to the lower economic sectors of our nation, in their infinite wisdom decided a few years ago that it was necessary to begin implementing a substantial increase in the minimum wage. Their rational was that we needed to raise the entry level pay of the nations work force up to a "living wage". This is an extremely noble idea, that will have disastrous implications for our nations economy.

As with most other actions made by the current gang of scoundrels in power, this move demonstrates that they are out of touch with the reality of making a living, that our people face daily. As minimum wages are artificially increased due to government edict, the effect will result in a net loss of entry level jobs, an incentive for employers to turn to illegal immigrants to fill these positions at a much lower rate of pay and an increase of the overall cost of living for all of us.

Employers will now face the following options due to this move to garnish political favor:
1. Absorb the costs of increased wages.
2. Pass along the added cost of production to the consumer in higher prices.
3. Make cuts in the number of employees which in turn will increase the workload on those who remain.
4. Begin skirting the law all together by employing undocumented workers who will work under the table for lower wages.
5. Search for off shore facilities that are exempt from Federal edicts.
6. Close up shop all together.

Out of the five options listed above, it is a safe bet to assume that option 1 will not be a front runner. The cost of consumer goods, which have already experienced unprecedented increases due to a sharp rise in material costs, will begin to see a steady increase that will have the net effect of literally pricing the recipients of this “gift” right out of the market.
This in turn will force more people to begin relying on government social welfare programs. The number of displaced employees, due to staffing cutbacks, will undoubtedly feed this increasing line of Americans finding themselves reliant on government handouts.

Along with the devaluation of the Dollar due to the Federal Reserves and the Congressional penchant of resorting to the practice of fiat economics, we will begin to see a steady increase in the cost of living which has the potential to pose dire consequences to the American way of life that we have grown accustom to. Our country would be well served if these socialist “do gooders” would get their fingers out of the soup and allow the market place work through the laws of supply and demand. If an employer cannot fill vacant positions at a low wage, he will be forced to adjust his wages to be comparable to the market in which he does business. This will level the playing field for all by bringing the cost of living down according to the free market demands.

I am not very optimistic about the path we find ourselves on at the moment. I fear that the socialistic tendencies that our elected officials display, both parties included, will not bode well for our way of life, but that’s just my two pennies.