The popular minimum wage concept is to help lower-wage earners to a better life, but the truth is it has the opposite affect.
A recent negative ad against Rob McKenna tried to compare the paltry increase in minimum wage to his salary. How about football and basketball players? Should everyone’s salary be reduced to minimum wage to level the playing field?
Imagine, if you will, another ridiculous idea, that instead of just a few cents, wage is increased by $10. That will not affect the football player, but it would have a tremendous impact on the cost and price of a hamburger, cost of gas and jobs.
The bottom line is if the business can’t sell its product at a reasonable price it will go out of business and minimum-wage jobs will be lost. Minimum wage is a very bad idea and harms only low-skilled workers.
When wages increase, production costs rise. Business has to offset this cost some way or go out of business. They could increase prices, reduce workers’ hours, the number of workers, or squeeze their suppliers. The negative consequences of increasing minimum wage far outweighs the positive ones.