Letter: Different view of minimum wage
This is in response to Mr. Purrier’s recent letter pertaining to a $3 per hour minimum wage increase. I’m not an economist either but I have a different view of the situation.
To stay somewhat even with inflation, a corresponding increase in the minimum wage is justifiable. However, the middle class workers have also experienced a decrease in buying power due to inflation but they don’t get the same attention.
In a simple comparison to what Mr. Purrier is advocating is a family of four. The two children want to go to the county fair so they each ask their parents for $25. Now the parents have $50 less to buy with so the amount of money spent is the same. The only difference is the products purchased.
Mr. Purrier goes through an elaborate exercise to make one believe that a salary increase is creating new wealth. In reality, the people contributing to the $3 per hour salary increase have $3 less to spend and the overall economy stays the same.
If he is correct, why not raise the minimum wage $10 or $15 and we’ll experience an economic explosion.
Labor is one of many economic resources. The cost of labor fluctuates due to supply and demand. Our economy has floundered the last few years due to lack of labor demand for low and middle income labor. Consequently, labor prices are depressed and unemployment is high.
There are three ways to grow the economy in a free enterprise system: build something (manufacturing), grow something (farming and timber) and mining (oil, coal, gas, minerals).
Our president promised, if elected, to get our economy thriving and to decrease spending. It has not happened in almost six years. What has happened is a continuing sluggish economy, fewer jobs except in government, lower incomes except in government, a doubling of people on food stamps, job creating businesses going to other countries because of high taxes and regulations, increased spending and debt and the list goes on.
What the liberals believe is that government can spend your money more wisely than you so they want a growing government and higher taxes. The conservatives on the other hand believe they can spend their earned money more wisely than government so they want less government and lower taxes.
What do you want?