Friday, August 15, 2014

Minimum Wage

There is a proposal to raise the minimum wage in Arkansas over the next few years. This is an issue that will have a clear divide between republicans and democrats. Both parties love this issue because they can use it in their election propaganda without having to worry about anything substantive occurring.  This simply isn't really an issue.  The minimum wage in Arkansas is currently well below the mandated federal minimum wage, and as such effects almost nobody. Raising the rate to the federal level will have absolutely no affect at all on anything other than allowing democrats and republicans to publically disagree with each other. Do we really need a law to accomplish that? Raising the rate in the future to something slightly above the federal level will still not have much of a net overall effect.  Some low paid workers will see a small increase in pay, but not enough to lift them out of poverty or provide a liveable wage. Some employers will end up hiring fewer workers, so those just entering the workforce will have an even harder time finding a job. Other employers will just pass on the increased labor costs resulting in inflation. This issue is insignificant to the point that I don't really care that much about it one way or the other. Generally I think the market can do a much better job of setting fair wages than the government can, but in this particular case the proposal is so miniscule that I don't think it really matters. As such, I would pass on my thoughts to the people in my district, and vote on such an issue in whichever way they thought best.   

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