Minimum Wage Comment

EnlightenNJ had a posting last Thursday on the minimum wage in NJ. I thought I'd take a quick minute and jot down a few thoughts on minimum wage.

1. Minimum wage jobs are stepping stones, not careers.

2. Raising the minimum wage almost always leads to job loss.

3. Higher minimum wage drives a larger portion of the economy underground depriving Federal, State and Local Governments of tax revenues.

4. Higher minimum wage leads to more illegal immigration as companies try to avoid paying higher wages.

5. Higher minimum wage leads companies that want to higher legally to either not expand or to cheat by hiring illegals through temporary staffing agencies.

6. Higher minimum wage artificially sets labor rates. If labor can not be found companies will raise pay rates. If a company can hire someone at $2.00 per hour than there is obviously a job shortage. If a company must pay $10 than there is a labor shortage.

Obviously, raising, or even having, the minimum wage is a political solution to a non-existent problem.