What goes up must come down

I have to admit that years and years ago, when I was struggling in a low-paying job, the thought of an increased minimum wage sounded awesome. Of course, like an awful lot of people my age (late teens, early 20s), I couldn't see past the end of my nose.

Well, here we are the day after America "has spoken" (whether the majority actually knows what it said remains to be seen), and among the many shifts in direction Democrats will attempt to take this country, a huge minimum wage increase occupies a significant spot on the Liberal table.

Here's the deal for the minimum wage earners: Bigger paychecks! Yippee! Now, past the ends of all your noses, here's what you can also expect. Companies that pay minimum or lower wages do so generally because they have established a profit line and their labor cost is such to ensure that profit (which, contrary to Liberal views, is the only way businesses can, uh, stay in business).

So a legally forced increase in that labor cost will force those businesses to do one of two things: Cut the number of jobs to maintain that profit margin or raise the price of their goods to accomplish the same end.

I'm fairly confident that the majority of people understand the concept of lost jobs. And anyone who has survived job cuts also can tell you that a 10-percent, 20-percent or worse cut in a company's workforce means those remaining must grab those proverbial bootstraps and work that much harder.

The increased price of goods also should give the majority of people reason for pause. And it doesn't stop with those goods produced by companies that pay low wages. Their goods are consumed by other companies that then also will face decisions to maintain their profit margins. It's kind of like a virus. You have a cold. You infect two people. Those two people each infect two other people and so on.

So at the end of the day, what do you have? You have, say, $50 or so more in your paycheck each week. You're also expected to do more work in some cases. And almost assuredly, what you consume, from your rent to your clothes to the food you buy, will increasingly cost you more. Maybe not immediately. But eventually.

And all those who make more than minimum wage? The rate of their climb up the pay scale has just been artificially slowed for the same economic reasons. That, and because the majority of higher wage earners consume more, inflation takes a bigger toll on them.

Wake up, America.

(Imported from Nov. 8, 2006)