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Minimum wage increase will upend US economy

5

A federal minimum has been a hot topic of late. A dramatic increase will upend our economy. Here are my thoughts: Everything is labor

All the earth’s resources are free to us. We didn’t pay the earth. We can only move it or rearrange it. That’s why it’s labor alone that we sell.

What if everyone had the same wage?

Suppose the whole world earned the same wage. Now, if we increased the wages for everyone, it wouldn’t change anything, because if we doubled labor costs, then everyone must pay twice as much as before. Nothing changes. The only way to get ahead is to have the freedom to make things faster or better. Wage compression

Suppose you have a high school diploma, earn $10 an hour and have no marketable skills. Another person worked their way up, has skills and has been working for several years. He makes $15 an hour.

If we changed the minimum wage to $15, what happens to the person already earning $15 an hour? In order for the person to feed a family of four, he needs $5 more per hour too just to break even.But will he get it? No.Therein lies the problem.It’s called wage […]

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