A Non-Issue: Minimum Wage

by Seth Pease

 Why is the first priority of a Democrat led Congress a complete non-issue of no significant federal importance? We would respond by saying that it is not about solving an actual problem, but about expanding federal government and promoting a socialist agenda.

Consider the following:

1)Who earns the minimum wage: Suburbanite white teenagers who's family income places them in the upper middle class. Only 2.5% of the workforce earns minimum wage and the median household income of those workers is $49,885. Do these first-jobbers really need a federally mandated raise?

2) The Federal Minimum Wage (FMW) is largely pointless anyway. Two other minimum wages overplay the FMW. Many states have instituted a minimum wage higher than the current and proposed FMW and the market price of low skilled wages is significantly higher. Witness a central Utah McDonalds that advertises $7.50/hr for a literal burger flipper job. If states and localities can address the wage issue on their own when the market fails, there is no need for federal intervention.

3)If the concern is really raising the quality of life of poor income earners, then (as the above illustrates) the FMW is hardly the route to take. Instead, Congress should consider relieving the poor workers of an onerous 14% tax incidence that occurs every pay check for every worker. Social (in)Security and Medicare/caid taxes zap the poor persons paycheck by taking money away from them and giving it to someone else. This hallmark of failed New Deal Socialism is particularly damaging to African Americans as they rarely recoup their investments due to demographic lifespan differences. Killing Social Security or at least privatizing or allowing for personal investment of the funds would be a much better way to help poor income workers.

The FMW has little to offer but wasted time and attention and increased market distortions. Any meddling in the economy will cause some form of unintended consequence, and such meddling should be restricted to real issues and real problems. The government must learn to restrain itself and we should be the first to promote such a change by opposing the FMW in all its forms.

*All statistics from http://www.heritage.org/Research/Labor/minimumwage.cfm