Friday, September 05, 2014

Inequality equals Equality

I've been watching the controversy over the minimum wage issue.   When I saw fast food protesters insisting on a $15/ hr. minimum wage, I needed to examine this further.
We all see the merit of $15/ hr. as a minimum wage, lifting poor workers into the lower middle class.
However what isn't so obvious is:

They will now fall into a higher income tax bracket, thus making them ineligible for all the freebees that they now qualify for (food stamps, rent subsidies, etc.) and paying more income tax.   In the end, they will have less spendable income.

If inexperienced workers are paid $15/ hr. in a factory where experienced workers are paid $12.50/ hr. there will be no incentive for experienced workers to any longer care about their productivity.   The inexperienced workers will have no incentive to better themselves.

Unskilled workers and uneducated workers just want a job, not a career.   Why do they insist on pay equal to experienced workers when, at best, they only qualify for an entry level position ?

By having to pay employees more, employers will either have to raise their prices, eliminate promotions and pay raises, reduce quality of their product or service, or lay off some workers.

Some employers will put a hiring freeze for entry level workers and only employ those that are qualified for positions above entry level.

The bottom line is that regardless of how unskilled or uneducated one is, they are now equal to those that went to school to get educated or learn a skill or trade.   Are they both equal ?   Do they deserve the same pay ?  

As an example:   At McDonalds, an entry level position pays minimum wage ($7.25/ hr.) and every employee has an unlimited opportunity to work their way up to better pay.   A manager or supervisor, first starting at entry level can earn over $50,000 a year.   Of course this doesn't happen overnight; it takes several years as one increases their skills and knowledge to qualify for the higher position and pay.

Why should a high school dropout with no skills be worth $15/ hr. to anyone ?   They have poor communication skills, have no work ethic, and probably will not stay too long at $7.25/ hr., quitting to get unemployment, food stamps, etc. (which actually pays them more to NOT work).

How many of you bleeding hear liberals feel equal to the unskilled, uneducated amongst us ???


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