There has been much discussion in the news lately about raising the minimum wage. Those against the proposal tend to use economic arguments such as the fast food executive who claimed that his company would be driven out of business if the minimum wage were to be doubled. There have also been dire warnings of blows being dealt to an already fragile economy and predictions of wide spread unemployment. On the other hand, those in favor of the proposal tend use moralistic arguments to try to advance their cause. Unfortunately, stories about folks who work full time, sometimes at two or more jobs, and who still can’t properly feed and house their families tend to fall on the deaf ears of the Washington politicians who greet the business lobbyist with open arms and extended palms.
I don’t think that we hear enough about the economic arguments in favor of raising the minimum wage. In our consumer driven economy, if the middle class continues to shrink and minimum wage employees continue to fall every deeper into poverty, who is going to have the money to buy the products and services which business seek to sell. When minimum wage workers make so little that they qualify for food stamps and other government assistance programs, doesn’t that mean that we enjoy low prices at Wal-Mart and McDonald’s only because we as tax payers are subsidizing their work force.
I subscribe to service provided by the Motley Fool – a company specializing in providing advice on stock investments. When I recently received an email from that company with a link to an article about the minimum wage discussion, I had little doubt which side of the argument they would take. Well, I was totally wrong. The article entitled, “The Saddest Thing About the Minimum Wage Controversy” made an economic case for raising the minimum wage far better than I could have done. I strongly suggest that you take the time to read it.
Here is the link to that article (hold down your “Ctrl” key and click on the link to access thew eb page. : http://www.fool.com/investing/general/2013/12/05/the-saddest-thing-about-the-minimum-wage-controver.aspx