The Minimum Myth

Although some American workers are struggling to get by on long hours and low salaries, the idea of raising the minimum wage is not the way to solve the problem. America is a capitalistic society, and forcing more regulations on businesses would not only degrade our outstanding system of operation, but would also have severe consequences for all those involved as well.

In order to understand the minimum wage myth, the concept of a free job market must be understood. In a free job market, the employer is free to set his rate of compensation at whatever he decides is just, and the employee is free to choose whether or not he will work for what the employer is willing to pay. In a competitive workplace, where employers are free to pay employees as they think is best, it is natural that they will pay compitent workers more to retain them, otherwise they would move to another company that puts more value on thier time. This type of job market is highly competitive for both employers and employees, therefore raising the quality of work and the average rate of compensation. Naturally, any company with better wages will attract the best talent and happier employees. This is a win-win for employees and employers as quality of work goes up and workers earn more as they learn new skills.

The first national minimum wage was established after the Great Depression. Since then, Labor Unions have continued to fight for wage hikes throughout the decades and in return, the federal minimum wage is now at $7.25, although in many states it is much higher. If one studies many of the countries with higher minimum wage laws, there were immediate problems that ensued from the implementation of the law.

It is clear that increasing the minimum wage is more disastrous than beneficial. There is an urgency that each union, individual, company, and lawmaker in this nation must understand the risks and detriments that higher minimum wages create. America has a capitalistic economy. Continually boosting minimum wage laws does not lead to happier workers.

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