There has been much talk in the last couple years about raising the minimum wage to $15.00 an hour. Most minimum wage workers support this idea
thinking it will give them a better standard of living and increase their buying power. Nothing could be further from the truth. They will
actually lose buying power and here is why;
Employers will have to increase their prices to consumers in order to maintain their profit margins. They are not going to sacrifice their
profit margins because that is the reason they are in business in the first place. Without that profit margin they have no incentive to be in
So, the minimum wage goes up, the prices you pay for things goes up, too. Yes, there is a time lag before the increased prices show up in your
local stores making you think you actually got ahead. This is short lived.
The real problem with all this is that the prices always go up more than the minimum wage did. For example; in 1968 the minimum wage was $2.22 an
hour. Gas was 24.9 cents a gallon. One hour of work would buy you almost 9 gallons of gas. In 2019 at a $15.00 an hour minimum wage and $2.38 a
gallon gas locally. One hour of work will buy you about 6 and 1/3 gallons of gas. You are now working 1/3 longer for the same gallon of gas. This
doesn’t just apply to gas. It applies to everything you buy. You are now working more and getting less.
In fact the only one that profits from a higher minimum wage is the government. Because everything costs more and taxes are based on a percentage
you are now also paying more for taxes which further erodes your ability to buy anything.
Minimum wage is a scam. Every time it goes up the worker loses. Yes your pay is more but so is what you have to pay for the things you need.
How is this an improvement?
The only way I know to come out ahead in this system is to produce as much as you can of what you need. If you can also manage to produce a
surplus, you will have something you can sell or trade for other things you need. There will always be things that you cannot produce such
as gas, vehicles, eye glasses, you are still going to need money but anything you can produce for yourself is something you don’t have to buy and
that will lessen your dependence on a system that is not designed in your favor.