Some Strings To Think About

29 09 2009

stringsI saw a blip across the tv screen recently telling people to write their congressmen to raise the minimum wage. Do people not understand? If you raise the minimum wage, all prices eventually go up. They have to because manufacturers cannot produce nor sell goods unless they make money to do so. They cannot make enough money to run their businesses unless the wage level is reasonable. So if the wage level goes up, then the cost of goods also goes up from the manufacturers through the retail industry and right out of  your pocketbooks.

If the wage level is raised, people also get to pay more taxes because they are automatically raised to a new level of income. Each level of income pays so much percentage in taxes. So now, not only do they make more money if their minimum wage is raised, but then they also pay more for everything they buy and then they also get to pay more taxes.

In the long run, they actually lose money when the minimum wage is raised. Who wants that? Only those that do not understand anything about the economy and think that someone is going to give them something for free. There are no free lunches in this world. Nothing is ever free. There are always strings attached. Pay attention to those strings!