Old Drum

Commentary on Warrensburg, Johnson County and Missouri issues from a Libertarian perspective. View my earlier commentary at www.olddrum.net.

Saturday, October 28, 2006

Proposition B, Miniumum Wage

OK, I'm against this one, too. For both economic and philosphical reasons.

1. The minimum wage was designed as an entry-level wage for those building work skills, not for a full-time life-time living wage for those who never bother to gain the skills or education needed to move up the economic ladder. Very few people who make minimum wage one year are still at minimum wage 5 years later.

2. A wage increase will drive up wages based on the minimum; you can't pay an experienced worker the same as an entry-level one. That drives up prices. If it passes, be prepared to pay more at restaurants, grocery stores, virtually everywhere.

3. This proposal will cost jobs. If competitve conditions prevent a business from raising prices, the business will have to cut employees. Businesses will be more circumspect at hiring lower skilled entry-level employees - which will happen to hurt minority group more.

4. The indexing part of the proposal will hurt Missouri's competitive position in relation to other states.

5. It will make it more attractive for the less scrupulous employers to hire illegal immigrants, as long as immigration enforcement and penalties are so lax.


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