Originally Published: April 13, 2016 6 a.m.
If the April 2 headline was published April 1, I would have thought it was an April Fool joke.
Raising the minimum wage to $12 is just a snare and delusion. Anyone with the least bit of economic sense realizes that all products and services we purchase have at least two components: labor and material. They are not provided free.
If the price of either component goes up, then the business must increase the price for what it sells, or it will not survive. Therefore, raising the minimum wage can only mean more inflation (or dollar devaluation, which is what inflation means).
Thus, raising the minimum wage is the dog chasing its tail, a total delusion that accomplishes nothing.
The whole concept of the minimum wage, which goes back about 75 years, is a false concept that ignores the fact that the true minimum is, and always will be, ZERO. If you are out of work, then you have NO wage.
What is called the minimum wage is really a job entry wage, and does not recognize age, training and experience that would be reflected in a freely competitive job market.
At the present time, the unemployment rate is pegged at somewhere near 5 percent, but the Labor Department calculation totally ignores those who have dropped from the labor market because they could find no work. Some calculate that that at least doubles the true unemployment figure to somewhere near 10 percent, or more.
I was raised to believe that America was the land of EQUAL opportunity for all. If you worked hard, you could be successful, Somewhere in the last part of the 20th century America became the land of equal outcomes for all, to be provided by the benevolent people from Washington, D.C.
The best thing politicians could do would be to totally scrap the minimum wage, rather than consider increasing it.
David W. Hannum