Is Raising The Minimum Wage Logical?

 
Clearly, there are people who are passionate about both sides of this political argument.
Both sides have stirred up emotions concerning it. The question is however, (if we follow logic)
does it even make any sense to raise the minimum wage at all?

First let us examine the side of the employee. For this example let us say you have been working
at XYZ company for 5 years. You started where everyone does in the company at minimum wage.

You started in 2009 and the Min Wage was 7.25 per hour.

You went through training, you put in your time and you got your annual raise of 3% per year.
That means before your promotions you are making $8.40, but you did get promoted twice and you are now the Assistant Manager and make $10.50 an hour.

Now, logically if they raise the minimum wage to let’s just say $10.50 per hour, it seems like you should also have your income adjusted.

It hardly seems reasonable or logical that an employee who has been working hard for the past 5 years should earn what a brand new unskilled person waling off the street
should earn.

If the company doesn’t increase your wages for the adjustment, what exactly is your motivation to be in the higher position earning the same amount?

The wonderful thing about math is that it is never wrong. Clearly the people at the top of the ladder are going to have some influence on what happens in the company from that
point forward. You don’t think the CEO or any of the officers are going to take a pay cut to make up for the sudden high cost of labor do you?

This means there will either be
A) Less Jobs
B) Massive inflation on products and services to make up the new cost of labor
C) More small companies who are barely making it now will close shop, resulting in even less jobs.

Here is something to think about. Poverty is NOT a result of the Minimum Wage. The reality is that the majority of people who do have minimum wage jobs do not live in poverty. The truth is
that a majority of them simply do not work at all.

Logic tells us perhaps people should learn more skills. Who wants to work for minimum wage. Certainly, even if you find yourself in that position you will be motivated to achieve more and strive for more.

That is what being promoted is all about.

How would raising the minimum wage create any incentive for people to strive for more, to work harder and learn more skills?

What do you think? Leave your comments below! Be Logical!

The Logic Goat