Let's take a look at the whole picture. The farm bill just passed which takes $8 billion from the food stamp program. The federal government cut off extended unemployment benefits as of January. Many states have already adopted requirements for those receiving unemployment and/or food stamps that they need to apply for three jobs a month.
While I go along with this in order to encourage people back to work we need to also be reasonable and fair about it. It's one thing to kick someone in the butt. Quite another to strangle them by not increasing the minimum wages they will need to live on without these safety nets.
I'll give you a few situations. A person comes into a business asking for a job because he/she is required to in order to maintain their benefits. The employer prior always started someone off at $10.00 an hour. But now this dupe walks in who's in no position to refuse a job or otherwise they'll lose their benefits. The employer fills out the paperwork provided by welfare or unemployment stating they will hire he or she for $7.25. That person has no choice but to accept the job, even if it's much less then they received in benefits.
Oh wait. It doesn't end there. The employer knowing they can't go back to their benefits if they quit, screws them over real good by overworking them with screwy hours. Perhaps even pushing this person enough allowing them to reduce the hours of the $10 an hour person. Yeah I know an employer would never do that, right?
Let's a look at the overall labor picture after millions are forced off of food stamps, welfare and unemployment. Many of them who had full time jobs will now find themselves in a position where they can't find a job that will hire them for more then 20 hours a week. They'd now have to work 80 hours a week to make up for the $14.50 an hour job they once had.
As if things weren't bad enough, I don't know of any part time employer who provides healthcare nor vacations days. So they lost that too. OK, so even though these people may no longer get vacation days, it is possible to get health insurance through the new healthcare exchanges (Obamacare). Wouldn't you know it, these certain 'selfish bastards' are even trying to take that away too!
AND IT DOESN'T STOP THERE!
Now it comes time for these workers to retire and in steps the 'selfish bastards' once again.
They want to gut Medicare and some even want to end it altogether. Also reduce Social Security by raising the age of retirement and reducing yearly wage adjustments. So it looks like our 80 hour a week wage earner is going to be forced to keep working well beyond the age of present workers before they qualify.
ANOTHER PRESPECTIVE
You Get What You Pay For
So far I've spoken from an employees point of view. Now let's take a look at it from an employer's. The worst fear of any employer is turnover and training costs. Someone working part time for $7.25 doesn't give a shit. Any employer who is willing to put up with absenteeism, lousy quality/performance, teamwork and excessive training costs won't be around very long. Not unless the government through legislation makes it worth their time by forcing a steady supply of cheap crappy workers to them. That in essence is the direction we are headed.
There's a huge difference between workers being incentivized as opposed to being backed into a corner. I'm certain we shall see the results of choosing one over the other in the not too distant future. Which path do we want to take? The one that encourages people to work and provide a fair living or one that creates two classes of people? The haves and those who will never have.
I recently wrote an article about how an increase in the minimum wage rate increases unemployment. You can read it here: http://wp.me/p3N9zD-4e
ReplyDeleteRobert Boxer Said, You can read it here: http://wp.me/p3N9zD-4e
DeleteYour entire 22 paragraph post is based on a false premise
SEE--
Does Increasing The Minimum Wage Increase Unemployment? 60 Years Of Data Says ‘No’
The Job Loss Myth-- The Most Rigorous Research Shows Minimum Wage Increases Do Not Reduce Employment