Thursday, May 8, 2014

The Economy - Minimum Wage

Should the minimum wage be increased? I don't think so for one important reason. If you keep increasing the minimum wage you will make it more profitable for businesses to use technology instead of people. I was just in a local market here in Southern California and they are expanding the use of self-serve machines. My local Walmart has done the same. If the minimum wage is increased and the cost of borrowing is kept low, what will keep businesses from buying some kind of machine to replace workers? What we need now is more jobs, not higher pay. Raising the minimum wage will just help businesses make the choice of going with a machine rather than an employee. I guess if you are the maker of the machine then it might be good for you, but I would not be surprised to find out that the maker is not in the U.S. Sometimes good intentions make things worse.

What do you think?