Signs of the Times - Will Lyster Comments on Possible Negative Consequences of Raising the Minimum Wage
January 2007
Letters to the Editor: Will Lyster Comments on Possible Negative Consequences of Raising the Minimum Wage
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George,

The New Year brings new laws. There are new laws taking effect in many states, but the one I’d like to comment on affects these (and then maybe later; other states):

Seven states -- Arizona, California, Delaware, Massachusetts, New York, North Carolina and Pennsylvania -- are raising their minimum wage. The federal minimum is $5.15 an hour. The new state minimum wages go as high as $7.50 an hour.

This means that the liberal “Living Wage” group has a foothold and will make attempts at lobbying other states. This could mean that consumer prices will start to jump due to the additional cost to businesses.

If you are only making $5.15 an hour (like most Living Wage lobbyists), it probably means you are new to the job market (and will eventually move up the ladder), or you are uneducated and probably have many bad habits such as excessive drinking, smoking, drug use and lack of concern for your job, your employer and it’s customers.

You more than likely take as many paid breaks during the workday as possible, give poor service to your customers, (if any at all) and you are probably not loyal to your employer either.

Educated or not – loyalty and hard work will bring about higher pay – it should not be the job of lobbyists.

As an employer, I will just switch the current tasks of my lower-paid employees (those that are not loyal to me, that stop working when their supervisor’s back is turned, that steal from me and shareholders) and pass their responsibilities on to my existing higher-paid, hard-working employees and simply increase their pay.

Basically, it’s time to cut the fat from the company. I am not going to keep paying this type of uncaring, unfaithful and lazy employee at $7.50 an hour ($2.35 per hour increase from $5.15) – an additional $4,888 per employee, per year to have the same behavior as before.

I am going to get rid of the low-paid employee. I am going to take half of that $4,888 and pass the annual $2,444 to another well-deserving (and now well-paid) employee that is loyal, hard-working and courteous to my customers.

Due to the new minimum wage, I am going to increase the unemployment figures. I am going to increase the public’s social costs and unemployment expenditures. I am going to increase the cost of goods for all consumers.

Best of all, I am going to lower my costs and increase my profits.

Thanks Living Wage group!

Will Lyster (electronic mail, January 1, 2007)


Comments? Questions? Write me at george@loper.org.