I have always had mixed feelings about the minimum wage law. The intent is good and any employer worth his salt is not going to argue about whether or not his employees should be able to at least survive on their wages.
The problem is that the cost of everything has gone through the roof. Food, rents, clothing, gas, even a cup of coffee is now almost a luxury for anyone earning minimum wage.
We keep hearing that there is no inflation but then how do we explain that the price of a used car would have bought a house 50 years ago? The truth is that prices on everything have gradually increased over time so actual the value of earned wages have decreased to the point where the hourly minimum is now equivalent to what I would think of as a starting a starting wage for a journeyman.
I have no idea where this is all going but while we try to figure it out, we will also have to figure out where to come up with the extra dough. Maybe raise our prices? Buy cheaper materials? Do more of the work ourselves and thereby need fewer employees?
The beat goes on...
D.D.
