Thursday, June 12, 2014
The minimum wage is being raised to $15.00 an hour in many areas and there are efforts to raise it nationwide. But why raise it to only $15.00? Why not $100.00? Why not $1,000,000.00 per hour? ....... When I started work in 1960 my dream was to make $2.50 per hour, the minimum wage then was $1.00 per hour. However in 1960 you could buy a decent house for less that $15,000, a new car for less that $2,000 or mail a letter for four cents or a post card for one cent. A carton of cigarettes was $1.80 and you would not believe how low food and gasoline were. Night Clubs were cheap: Frank Sinatra, Dean Martin AND Sammy Davis Jr. plus two drinks totaled $5.00! Are real salaries higher now? ..... In Turkey in 2000 everyone was a millionaire! But a million Turkish Lire was worth 67 cents American. Of course you could buy very little with a million Turkish Lire. Turkey, and other countries, saw the folly of this and reformed their currencies. Does the United States wish to become another Weimar Republic? ....... Foolishly raising the minimum wage, and the resultant inflation, would wipe out the assets of anyone with savings accounts or government bonds and destroy anyone on a fixed income while moving workers into higher tax brackets. Jobs would be lost. It would do nothing to raise the standard of living for low wage workers. ...... What counts is not the level of income but the purchasing power of those dollars. Raising the minimum wage solves nothing!