Note: I always taught my kids not to use the word stupid. But it’s in the news a lot these days, and there may be no better adjective to describe the minimum wage.
My 16-year-old son just started working part-time in an entry level position. I’m very proud of him for taking the initiative. Low and behold, after only three weeks on the job, he got an 11% raise. The boy must be good, a real chip off the old block!
But wait. The raise wasn’t based on performance, it was Washington interfering in the markets again. And it may cost my son his job.
The minimum wage increased to $7.25 on Friday. Of all the misguided government programs, this may have the most damaging unintended consequences of all.
I shop at the place he works; you probably do, too. I’m just waiting to see the impact of the minimum wage increase. Will my son lose his job or suffer a cutback in hours? Will the store raise prices or cut back on quality or service? Will lower earnings cause the company’s stock to decline and lower our retirement savings another notch?
You can squeeze a balloon all you want. Either the pressure goes somewhere else, or it bursts.
If raising the minimum wage to $7.25 is so smart, why not raise it to $17.25 or $117.25?
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