Sunday, January 8, 2012

The Drag from Minimum Wage Laws

When the economy is struggling to create new jobs and pull itself back up by its bootstraps, it is not helpful to have laws that make it illegal to create jobs. Minimum wage laws are exactly those kinds of laws. Someone who would like to make $ 6 per hour, rather than remain among the unemployed cannot legally do so anywhere in the United States. In San Francisco, it is not legal to take a job that pays $ 10 per hour! In many states, it is illegal to take a job making $ 9 per hour. It is also unlawful to offer anyone a job at these various rates in these various localities. That is what minimum wage legislation mandates.

What these laws are saying is that until the economy has made a dramatic recovery, those of our citizens at the bottom of the pile will have the boot heel of big government on their necks. Once unemployment rates are small and the boom is on, if that day ever comes again, then and only then can folks at the bottom of the talent pool have the legal right to work. Because only at the peak of the boom will wage rates for many jobs began to exceed the minimum wage levels that various states and municipalities, not to mention the federal government, have imposed.

This is unfair and economically absurd. When will politicians remove this obstacle from the hopes, dreams and aspirations of our citizenry at the bottom of the economic pile?