I am against raising the Federal Minimum Wage. In fact, I am completely against the Federal Minimum Wage in its entirety. Why? Because wages should not be determined by government; market forces should determine pay. However, I understand that it is impossible to walk that cat back. The “Minimum Wage” as a concept is here to stay.
Therefore, let me add this to the equation: why are we stuck on a FEDERAL Minimum Wage?
States and localities always have had the right to increase the minimum wage at will. They do not need the Federal Government to move the Minimum Wage needle. They can do this on their own.
Thus, if the working poor have been the primary concern of the Democrat Party – and if they really BELIEVE that raising the Minimum Wage will help that constituency – why are they only now raising the minimum wage in their respective states?
They could have done it all along!
Yet, most Left-wing state and city governments only just began raising their Minimum Wage benchmarks in the past two years. They did not have to wait. They could have done this years ago.
As such, I smell a RAT!
The Federal Minimum Wage makes no sense because each state has a different cost of living, tax structure, etc. Therefore, setting a National Benchmark that uses averages or aggregates makes zero sense. If you use an aggregate, you may be too high for employers in Mississippi but too low in California… the pay in Oklahoma does not work in New York… etc.
Consequently, truly Leftist politicians in Big Blue states should not want a Federal Minimum Wage because – based on their own logic of a living wage – it works against the best interests of their working class base. A Minimum Wage earner in Massachusetts should not want to get paid on the basis of wages in Nebraska. They should want to get paid on the basis of wages in Massachusetts… right?
But there is no prohibition against Minimum Wage adjustments at the local level. If the working poor were truly a concern for the governors and legislators of the states that most recently raised their Minimum Wage thresholds, they could have easily done so at any time. Why did they wait so long?
Washington, DC, does not need to tell Sacramento the cost of living in California.
In fact, if each state wants to put in an automatic Consumer Price Index (CPI) adjustment to ensure the Minimum Wage grows (or shrinks) with inflation (or deflation), they can do that, too.
So why the consternation over FEDERAL Minimum Wage laws from the Left? Here is the answer: to destroy their interstate competitors.
The reason that New York City’s Leftist Mayor and Governor want a Federal Minimum Wage is because New York is losing jobs to Georgia and North Carolina.
The reason that California’s Leftist Governor and Mayors want a Federal Minimum Wage is because California is losing jobs to Texas.
The reason that Illinois’ Leftist Legislators want a Federal Minimum Wage is because Illinois is losing jobs to Indiana.
And so it goes…
The real war over the Federal Minimum Wage is NOT to improve the lives of the working poor. All of those Democrat leaders who now champion a higher Minimum Wage could have done that in their own states years ago. They didn’t.
The real fight is an attempt to raise the costs of doing business in those states that are benefiting from low cost business environments. By doing so, they avoid having to raise the Minimum Wage in their own states (which they avoided for years), while hurting those states which are growing economically in free market climates, especially those in the Southeast or the agrarian Midwest.
After all, did anyone really think that Californians have the best interests of Texas in their hearts? New Yorkers the best interests of Georgians? Massachusetts the best interests of Alabama?
Consequently, if you are a Southerner voting for a higher FEDERAL Minimum Wage, you are putting yourself out of work because you are stripping your state and geography’s competitive economic advantage. You are effectively giving that advantage back to states like California or New York. That makes no sense for you, the Southern or Midwest worker.
Sometimes you have to dig a little deeper to see the real motivations of movements.
The FEDERAL Minimum Wage argument is a highly effective sneak attack by the Democrat leaders of failing state governments attempting to get jobs back into their states. Nothing more. Do not fall for it in November.