No minimum wage, just higher wages.

Raising the minimum wage will not alleviate the misery that so many are experiencing.  What is needed is to change the payroll tax laws to persuade employers to pay higher wages. By putting a high tax on low wages, we might be able to get employers to pay decent wages. For instance, if you pay your employees 8.00 dollars an hour, you pay a 40 percent tax on payroll. If you pay them 12.00 dollars an hour, you pay 12 percent tax.  At 20.00 dollars per hour, there is no tax.  Viewing labor as an expendable resource is pure capitalism, which is destroying itself right now.  We are a community, which survives because everyone puts in what they can.

Some workers are not worth high wages; trainees receiving minimum wage is an acceptable practice.  But that wage should be used rarely, with average wages above that by a considerable margin.  We do not want to raise the minimum wage, we want to raise the average wage.  Average wages must be nearly twice minimum wage if there is to be a large consumer class.   Minimum wage has been raised again and again, and it never changes the poverty levels, because it makes it so that you can be broke with more money than ever before.

In order to consume, people need money, more money than basic survival requires.  When people can afford such things as spa treatments, premium beverages, luxury cars, gardeners, housekeepers, the economy will be roaring.  When people spend money on those kinds of things, the money goes through the economy over and over.  Minimum wages take money out of the system, and puts it in the hands of the one percent.  Raising average wages would increase economic activity, generating more wealth.  Don’t raise the minimum wage, raise the average wage.


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One Response to “No minimum wage, just higher wages.”

  1. The Badass Constitution Says:

    Amen. Sadly, taxing is often the only way to get a response. Hit them in the pockets as empathy and looking beyond one’s bellybutton is rather rare these days in the employment sector. I did research recently on average rents in the county I live in Southern California. I then figured averages wages and saw that the average 1 bedroom apartment was going for $1500, and the average wage was $14/hr. This “average” person would have less than $500/month left after paying rent and payroll taxes. WTF? So there are entire families living in 1 bedroom apartments, 4 roommates living in a two bedroom house. I could go on forever on this subject, but glad you did it so eloquently. Thanks for the intelligent post.


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