7 Minimum wage. << Prev Next >>
by: ColonelZen	IP: 250.16	rated: 0-0	posted: 2007-02-22 23:06:45
Posted at: http://davidbrin.blogspot.com/2007/02/planning-for-pardon-tsunami.html#comments     There is no doubt that raising the minimum wage stimulates the economy. And the resultant growth of the economy is definitely greater than the concomitant inflationary pressures. Economics is NOT a zero sum game; its inherent growth has been well understood for a hundred years. The limiting factor in raising the minimum wage is when it results in an economically equivalent or greater loss of jobs.     But the real value of raising the minimum wage (if we can afford it, as implied above) is more social than directly economic. By definition those near minimum wage are those on the bottom edge of our society (or new entrants, kids). Making the MW sufficient that one or one+part jobs provides a minimum if low, level of comfort shows those people at the edges of society that there is a place for them. It gives them incentive to “buy in” to our culture and disincentives destructive and disruptive behaviors.     An additional factor is that it teaches that ours is a humane culture, which of course will further tighten the emotional bonds.     Channeling Margaret Mead here, we need to give the young and disadvantaged reason to accept and identify with our society. A surety that they will be an accepted and find succor in it and means to advance themselves economically and in whatever personal interests they may have and be capable of.     The problem of raising the minimum wage for social purposes, is of course that it is patently unfair to the lower echelon businesses who employ many of them. It significantly raises the cost of labor, and raises the barriers to small entrepreneurship. Tax incentives and government encouraged startup and small business financing may be part of the answer, but the latter of course has its own bureaucratic nightmares.     I don’t have any final answers, but I do know that disenchantment and disenfranchisement among the young and the perception that many hold that their lot will not improve for the foreseeable future definitely a great part of our culture’s malaise.     -- TWZ