Imagine you are trying to get your first job. You don’t have much education in the field, and you also don’t have much job experience so the employer says they will only pay you five dollars an hour. Seeing the fact that a low salary job is better than no job at all, you agree to this offer, and you are both happy. You’re happy to get a job, he’s happy to get an employee. So it’s all good… until the Government steps in and says, “No! You must pay your employees at least seven dollars and twenty five cents per hour!”
You might be happy to work for 5 dollars an hour, but it doesn’t matter. It is illegal. The employer doesn’t want to pay that much, and you don’t get a job, and the employer doesn’t get another employee. So in the end we must ask, who does it help?
So that brings me to my post, what’s wrong with the minimum wage. I’ll be going over this in three points
#1: The minimum wage is completely unconstitutional:
You’ll notice after reading the constitution there is nothing that says, “The right to make at least seven dollars and twenty-five cents per hour!” In fact I thoroughly read through the constitution the other day, and there is nothing about wages at all. The National Review points this out when they noted, “Nothing in the constitution grants Government the authority to set or raise the minimum wage.” The thing people need to understand is making money requires hard work and effort, not more laws.
Just being unconstitutional is a reason to abolish the minimum wage. But more than that it actually increases unemployment.
#2: Increases unemployment:
The minimum wage was originally enforced to create a more fair workforce. But despite these intentions the minimum wage can actually decrease employment. According to the Mises Institute for Finance and Economics “One study evaluated the effect of minimum wage increases on low-skilled workers. They found that minimum wage increases between 2006 and 2012 “… reduced the national employment-population ratio by 0.7 percentage points.” That amounts to over 1.4 million jobs lost.”
Why does it do this? Because like the story I used earlier the employer may not be willing to hire someone for this price. So we see it doesn’t help anyone. That is except the Government.
#3: Too much power to Government:
Government strives to acquire as much power as possible. That is why over the years they have made more and more laws restricting us from starting up businesses, owning guns, starting other types of organizations, and even restricting our freedom of speech. When the government got to set private employers wages, I’m sure they were thrilled! Less freedom for the people means more power for the government.
So in the end, we must ask, does this really help the citizens? I think this post shows the answer.