Working for Minimum Wage

I know the news is all a buzz with the idea of raising minimum wage. I feel it is time for me to give a brief economics lesson on the dangers of raising minimum wage. It will actually not be a devastating disaster, but it will certainly not raise the quality of life for anyone. Let us begin.

Right now the national minimum wage is $7.25 an hour. If you work full time on this wage with no overtime, you will earn $15,080 annually. The cost of living comfortably I the US is much higher than this I know. Especially in certain areas such as California, New York, and Florida. But for arguments sake, let's say any normal person could reasonably get by (get by, not get ahead) on $35,000 annually. I could research a more accurate number but this rough estimate will serve the purpose of my argument. 

Now we raise the minimum wage to $10 an hour. Your annual salary goes up to $20,800. This brings you much closer to that average cost of living. Or so you think. What you do not realize is that the cost of living is now $45,000 annually. So you are not any closer to that cost of living, even though the government promised you would be. 

You are now asking yourself how this could be. How could the cost of living go up so much? A liberal would say it's because big businesses now see an opportunity to make more money because consumers are earning more money. This is not true. Cost of living rose simply because it now cost companies more to provide you with the services and products you desire. Before minimum wage was raised, companies were able to provide their goods and services at one set cost; this cost included the labor and supplies needed to perform the function. When minimum wage was raised, this cost to produce your goods rose with it. The cost I labor increased, along with the cost of supplies because a conpanies supplier's labor costs also went up. Companies still have to make a profit in order to make their owners (the people who's retirement is invested in their stocks) happy. The higher minimum wage goes, the higher the cost of living will go. This is why raising minimum wage will have no benefit or damage to the economy. It is simply a tool used by politicians to buy votes. 

I hope now you realize that minimum wage shoul not be considered when you are choosing who to vote for. I recommend looking at candidates that have real ideas to fix our economy. Vote for people who have real business experience, not lawyers. Lawyers belong in court rooms, not congress.