What would be the impact to standards of living with a $15 per hour minimum wage? Not much!
Like many things, the Fair Standards Labor Act of 1938 was a good thing and quite necessary at the time. For that matter, labor unions began as good and necessary measures, then the good thing begins being abused by government and greedy people and turns into a nightmare.
Franklin Delano Roosevelt, president 1932 to 1945, as part of the New Deal, again, much of this was necessary to pull this country out of the Great Depression, started several programs, one of which was the Social Security Administration. These New Deal programs came into being from 1933 to 1936. Fair Standards Labor Act (now the Minimum Wage Law) began in 1938.
It was a capitalist controlled society and the workingman had already been pushed down and tromped on by the Great Depression. The first minimum wage was 25¢ and was to provide sustenance for the workingman and woman. At the same time, and for the first time, employers were required to pay employees more for working overtime. Prior to these laws, unfair employers would work people for peanuts and work them incredibly long hours in the sweatshops.
The first minimum wage of 25¢, adjusted for inflation, would be about $4.50 today.
Now, let’s roll the clock forward to about 30 years ago. In 1989, the minimum wage was $3.25 per hour. Those making minimum wage then enjoyed about the same net buying power people do today with the minimum wage of $7.25. So what’s been achieved other than the minimum wage laws being a catalyst for inflation? Not much.
There are two issues here. One is the attempt by liberal congressmen, we’re sure with big hearts and small brains, to help the little guy. We once could single out Bernie Sanders but now, there are so many leftist liberals on the ticket seeking the Democratic presidential nomination that rather than singling out BS, take your pick. These people want to help raise the standard of living for minimum wage-type employees. Can’t be done.
Standards of living are increased in several ways. One can inherit, one can take a risk that pays off or one can simply earn it. People who are making minimum wage are the ones who have to take responsibility for increasing their standard of living through their performance. Government cannot do that for them.
Efforts by the government to help the minimum wage worker by forcing business to pay them more only triggers inflation. Trends of the last several generations will prove that.
In addition to stimulating inflation, increasing minimum wage will inspire business to creatively find ways to employ fewer people – ex: automating more tasks opting for machines and computers rather than people. See McDonald’s kiosk.
Sadly, even by today’s dollars, there are people who will never be worth $4.00 per hour in their life. Employers should have the option of hiring some of these people to do menial work at a lower rate allowing them to be productive and reducing their government subsidies.
Should the government choose to significantly increase minimum wage, it will just increase the number of potential members of the work force who are unemployable.
There was a time when we liked inflation. It was during the time of fixed rate financing. We could borrow money then, because of inflation, we’d pay it back with dollars of lesser value. Those were good times. They just no longer exist. Inflation devaluates the dollar but pushes up interest rates. Those who have cash see their dollars increasing but their buying power stagnant or diminishing.
Bottom line: the way to get ahead is to work and earn it. Government can’t fix that for us. Again, the Dems hate to admit this, like they’re hesitant to blame mass shootings on the shooter. They’d rather blame the guns or the president. The Dems will have to come to grip with the reality that one’s only personal production, performance and/or willingness to take a risk for prospects of gain – in other words – Dr. Phil would say, “At some point, you’re going to have to learn to take responsibility for your own life.”
Cushing welcomes Julie Nissille – Switzerland
Sunday evening, Heather Candler and family welcomed the Rotary Club of Cushing’s new Youth Exchange Student from Switzerland.
Julie is a delightful 17-year-old who will be beginning her senior year at Cushing High School this Thursday.
She will be living with Chase and Heather Candler and their children. As much as Heather would like to keep Julie for the whole year, Rotary rules insist that exchange students be hosted by a minimum of two families, thus, the Rotary club is seeking either Rotary or non-Rotarian families who would like to host Julie in their home to host this wonderful young lady.
The club has one family with an empty nest agreeable to host Julie, however, for her; it would be a more valuable experience for her to be hosted in families with other children.
Through this school year, Julie will be part of the local club, part of the school and part of the community. We’re looking forward to strengthening the friendship. It’s always a blessing.