Scott Liddicoat

Politicians pushing for minimum wage increases should take real initiative instead.

Worker productivity doesn’t increase from raising the minimum wage.  But the cost of doing business increases, so prices increase instead.  You don’t have to interview a business owner or economist to figure this out.  Angry consumers make this clear as they endure, or walk away from, higher and higher prices.  It’s hard to claim that increased prices for everyone—especially the poor—is a good thing. 

Many low wage workers and working poor fear a minimum wage increase, and for good reason.  Minimum wage increases normally result in employee layoffs, fewer shifts, and shorter hours.  Why?  In an effort to absorb the increased cost, employers reduce services, cut hours of operation, automate, and “streamline” their workforce.  And fewer customers willing to pay higher prices usually means fewer workers are needed.  Finally, business closures can result from raising the minimum wage.  This is especially true of small businesses that have no place to absorb the added cost.  It’s hard to claim that unemployment is good for low wage workers and the working poor.

Some talkers make the silly claim that raising the minimum wage does not affect prices or unemployment.  If not, why are they so timid, proposing only $15/hour as their rate?  Why not $150/hour?  Or $1500?  We can have as much price inflation and unemployment as their wild imaginations will allow.

Politicians should stop pushing for destructive minimum wage increases.  Instead it’s time for them to start businesses with the same—or better—products and prices as the fast food, big box, and small businesses they dislike.  Then they can prove with their own money and effort that “minimum wage increases don’t increase costs.”  Or, “everyone should be paid a living wage.”  Or whatever the latest trendy mantra is this week.

If they can run their own businesses the way they want everyone else to run theirs—and stay above water—employees and consumers will flock to their doors.  More poor people will have jobs and they’ll be wealthier, too.  Prices and unemployment will drop.  Everyone will be better off. 

No legislation is needed.  Talkers just have to get to work…and prove up.