I was watching the news this evening and I saw the story of airport baggage handlers in Chicago who are striking to raise the minimum wage to $15 per hour. Apparently most baggage handlers make minimum wage which is around $10 in Chicago.
This strike in Chicago is just the latest in a nation wide movement to establish a national minimum wage of $15 per hour.
The main supporting arguments I hear from mostly liberal pundits on news programs seem to revolve around the assumption that people with minimum wage jobs are somehow trapped in those jobs and deserve to earn what they call a "living wage". They say things like you can't pay the rent, own a decent car, or raise a family on minimum wage. My immediate reaction to this is "Well yeah, no shit! It's MINIMUM wage, moron!"
I have to ask, who told these people that minimum wage jobs were a career path? Who is telling the this is the best they can do in our society? This is the best you're gonna do, so make the best of it.
Minimum wage jobs, for the most part, are meant to be stepping stones- the first rung on the ladder up. They are meant for people with few or no skills to gain work experience, learn new skills, prove you can show up on time and be a good employee. Then logically, you move up and on to new and better things. That's why they are often referred to as "entry level jobs".
Of course there are some people who just don't have the capacity (mental, physical, emotional) to move beyond these jobs, but those are the very few. Most can and should view these jobs as paying your dues, so to speak. A place where you start building your resume.
But somehow in our society many people seem to have lost ambition. They just want to go to work at a job that isn't very demanding physically or mentally, put in their 8 hours and go home to watch TV, play video games, get high, and wait for their lottery numbers to hit. They have come to see these entry level jobs as their lot in life. They can't get rich being a superstar athlete or musician, so may as well just put it in neutral and coast down the hill.
As the entitlement mentality gains stronger hold over our younger generations, those in these "McJobs" fall for the notion that the government should be responsible for ensuring their economic prosperity through minimum wages. The attitude is "Well I work. I'm not a bum on welfare. So, I should have all the things I want." Somehow $15 an hour has been settled upon as the answer to all their problems.
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| The 'Fight' And It's Unintended Consequences |
The truth is $15 an hour for most of these entry level jobs is just not reasonable to expect.
First of all, the free market should be the main determinant of wages. Society places a natural value on certain work. All jobs are not the same. They don't require the same skill set, experience level, or ability.
Also, a single national minimum wage does not take into account the wide variation in the cost of living and local economies around the country. For example, $15 an hour for someone in Manhattan or San Francisco is chump change, while for someone in rural Tennessee it may be higher than the prevailing wage for highly skilled positions like nurses and teachers. One size does not fit all.
By setting a minimum wage, you screw with the natural balance of the free market and incur many unintended consequences.
Minimum wage laws actually end up screwing many members of society. Young people for example.
Youth unemployment is at record highs. Kids in high school who want jobs can't find them. The traditional entry level jobs in fast food, retail, etc. are being filled by adults who have settled for these jobs because in part, the minimum wage is just enough to attract them.
Employers offering these jobs will naturally give them to older people who have been proven to be more reliable versus a kid with no employment history. Since they have to pay more than the market would naturally dictate, employers will go with the less risky option of an older person. They will also hire those who they think will work harder for less. That means immigrants- both legal and illegal. So, it's not only kids getting screwed, but also native born Americans who have the attitude that their labor is worth more than it is.
Some unintended consequences- more unemployed young people with too much time on their hands and no money= increased crime, increased numbers on the welfare roles. Also, more young people will feel the need to pursue higher education levels to increase their employment potential. Less young people will gain the job experience they need to move into skilled labor and trades creating a shortage of people who can compete in those 'blue collar' jobs. More young people graduating from colleges create a glut of over educated young people competing for a limited number of entry level 'white collar' jobs resulting in even more unemployed with many also saddled with crippling student loan debt.
Another consideration is that when faced with rising labor costs, employers will undoubtedly look to reduce those costs through automation and increased efficiency- eliminating positions wherever possible. Just look around and you'll see many examples of this. Computers and robots don't need health insurance, vacations, lunch breaks, or workman's comp coverage. The result is those who do still have jobs will be expected to do more for their pay.
To a certain extent, those pushing for an increased minimum wage are pricing themselves out of a job.
