Thursday, 8 March 2007
Poor Get Screwed as Job Destruction Bill Passes the Senate
Senate Republicans rolled over today to populist rhetoric and approved an increase in the minimum wage. The bill would raise the minimum wage from $5.15 an hour to $7.25 over the next two years. Increasing the cost of labor for those that hire low skill works by over 40%. Such an increase will inevitably lead to a destruction of low income jobs and an increase in the cost of good sold. All of which will hit the lower income workers much harder than the middle class.
Now for a ridiculous quote devoid of logic from those in favor of the bill.
"They're not going to get rich, but any amount over $5.15 an hour is certainly helpful," said Pat Delahanty, associate director of the Catholic Conference of Kentucky. "To not pay somebody a just wage is theft, and $5.15 is no longer a just wage in this nation."
As a Catholic, I am appalled that the director of the Catholic Conference would make such a statement. What is heck is a "just" wage? Some arbitrary number decided on by people like her? People who have no grasp of basic economics. Someone who has never run a company that depends on low skill workers.
Let's define what a "just" wage really is. Let's say I have a job that needs to be done and I am willing to pay X for said job. If you come along an are willing to accept X for doing the job then we have an agreement that both sides believe is "fair". If either side believed otherwise then neither of us would enter the agreement. So now let's look in the Thesaurus for the word fair. Oh look here.
fair - just, equitable, evenhanded
The first word associated with fair is just! So our contract is not only fair, it is just! This example is identical to the contract we enter whenever we take a job. Even low skill jobs. So really, the only fair and just wage is one entered in by two people without the government interference. Anything else is unfair to one of the two parties. So when government sets a minimum, it has in reality changed the balance in favor of the employee. Making it unfair for the employer. Shouldn't that be considered an "unjust" wage?
