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Section A: General News


Letter: Minimum wage hike merely a Band-Aid




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May 14, 2014 | 4,608 views | 58 comments

Editor:

Once again we are hearing about a higher minimum wage. But basic economics shows that raising the minimum wage is nothing but a feel-good Band-Aid on a festering problem.

The strength of any wage is its buying power. In 1966, the minimum wage was $1.25 per hour. But gas was only 24.9 cents a gallon. One hour of minimum wage could buy five gallons of gas! That $1.25 in 1966 had much more buying power than even the highest proposed minimum wage today.

Buying power is dependent upon the cost of the products one buys. The cost of products is based on their cost of production. When minimum wage goes up, the cost of production of most products goes up and the buying power of the individual dollar goes down. If minimum wage was raised, within a few weeks the cost of living would rise to compensate for the new cost of production. The new minimum wage would soon have no more buying power than the present minimum wage. It might have less!

How can we help those on minimum wage? Simply lower the cost of living by raising the buying power of each dollar. How could government raise the buying power of the dollar? By lowering taxes!

When you make money, you pay income tax. When you buy a product, you pay sales tax. But that’s not all! Built into the price you pay before sales tax is the cost of the tax that the industry has to pay. The prices of all products are adjusted to cover the taxes involved in production.

If taxes are lowered on business, the cost of products goes down. If income taxes are lowered, the usable portion of your income goes up. If sales tax is lowered, the buying power of your wages goes up.

Raising minimum wage doesn’t really help the poor or anyone else. Lowering taxes helps the poor and everyone else.

STEVE CASEY

Stonewall, La.
 

Your Opinions and Comments

 
4th Generation Texan  
Sutherland Spriungs  
May 28, 2014 10:32am
 
Have I mentioned that I wiped something off my shoes the other day and I immediately thought of Obama?

 
4th Generation Texan  
Sutherland Spriungs  
May 26, 2014 10:18am
 
I'm feeling nauseous watching Obama at the Memorial Day celebration. I'm thinking that he shouldn't be allowed to breathe the same air as the gathered military heros at that sacred place. Obama cares absolutely nothing ... More ›

 
Bob Pritts  
St Hedwig, TX  
May 23, 2014 11:35am
 
Grouch, You're right. Last time I checked the Wall Street indexes I noticed that there were only two indexes ... The Retail Index and the Wholesale Index. I already said that your pizza restaurants were retail but were ... More ›

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
May 23, 2014 10:58am
 
Due to your never ending quest to convince me that fast food operations are not retail, I see no reason to continue this exchange. Being a simple country boy, it's hard to convince me that a pig is not a pig, no matter ... More ›

 
Bob Pritts  
St Hedwig, TX  
May 23, 2014 9:13am
 
Grouch, See if I can explain it to you this way. I think we can agree that Apple is a retailer. But, when seeking to buy or sell its stock its labeled as in the electronics index along with other electronics companies. ... More ›

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
May 23, 2014 4:37am
 
Bob Pritts ... I do not have a fixation with 'retail' but I do respond to false statements. Just call it a 'detail' fixation. For some unknown reason, you stated that fast food outlets were not considered ... More ›

 
Bob Pritts  
St Hedwig, TX  
May 22, 2014 9:58pm
 
Grouch, You're right. I shouldn't have guessed it was Pizza Hut. It could been any number of pizza outfits ... Dominoes, Little Caesar's, Papa John's, etc. What is this fixation you have with retail? I tried to make ... More ›

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
May 22, 2014 9:17pm
 
Bob Pritts..... My bakery example was in response to your contention that fast food outlets cannot be classified as retail. I found a web site that used the exact same figures that you claimed to have privy to because of your ... More ›

 
Bob Pritts  
St Hedwig, TX  
May 22, 2014 8:36pm
 
Grouch, I don't doubt you did find wage data. The data you found would be an industry average ... correct? Does it give you the payroll averages on individual franchises ... McDonalds, Pizza Hut, Wendys, KFC, Burger King, ... More ›

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
May 22, 2014 6:36pm
 
Mr Pritts..... That's strange because I found wage data on a NRA site, it just wasn't broken down to fast food outlets. So if you got the info at a NRA convention, would that suggest it might be a bit outdated ? I was ... More ›

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