Many people are frustrated with low paying jobs and are demanding higher minimum wages. The majority of people don't understand how damaging raising or even having a minimum wage is to the economy. We can already see the effects of a higher minimum wage. McDonalds and other corporations are now switching to self-checkout POS systems and will just keep on a couple people at $15 dollars an hour. Everyone else will lose their jobs.

Low Skills

Minimum wage jobs were really meant for low skill workers to gain experience in the workplace. Most of the workers with low skills were high school students looking for extra money part-time. For example, we used to have gas station attendants that would pump your gas and clean your windshield. These attendants didn't get paid much but a lot of them ended up becoming mechanics because of what they were able to learn on the job. Minimum wage jobs were supposed to be a stepping stone for teenagers to gain valuable experience. As the price for these jobs rose they either were eliminated or qualifications for the job became tougher. Businesses don't want to pay more money for a person whos skills are worth less. If someone doesn't have experience, they are less likely to get a job with a higher pay. This limits the ability for someone with no skills to enter the workforce.

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Experience

Have you ever thought about the minimum wage this way? If I can't get a job because I don't have the experience, but am willing to take $5 dollars an hour, a business owner legally would not be able to hire me because of these laws. Minimum wage laws prevent people from working. Our welfare system has become out of control. There are people who actually collect welfare because it pays more money than a minimum wage job. Regulations and subsidies always backfire while creating more economic problems for average people. Higher wages also equal higher prices for consumers. Businesses will find ways to maintain profits and adjust for higher operation costs.

Useless Power

People would have a lot more opportunities if the government removed all the barriers to entry into the marketplace. That is all regulations are, barriers to entry. Many jobs have disappeared every since the minimum wage was implemented. Business owners found that they may not be able to make enough money if they had to pay higher amounts to employees. A business owner would be able to hire three employees for $5 dollars an hour, as oppose to one employee for $15. Production would go up and the business would do better. As those employees gained more skills there may be room for advancement. If there isn't room for growth within your company, now you have the experience to explore other opportunities.

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Make Money

If young people don't have the skills to acquire these higher paid minimum wage jobs they may look towards illegal ways to make money. There is a big market for marijuana and many teenagers find their way to that market if they can't find a job. This, of course, is related to the drug laws. If the regulations on drugs were lifted it would get drug dealers off the street overnight. Legitimate businesses would grow around those drugs if there was a market for them. The drugs would be safer, better tested, higher quality, and cost less because businesses would have to compete for customers.

Jobs are in China

There are many factors that play into why people now need these minimum wage jobs to survive. The government has pretty much eliminated the middleclass through taxation and regulations. They have made it so difficult to start a business. There are many forms and licenses that you need to gain just to join the workforce. If you have a skill in an area and people are willing to use your skills, you should be able to practice them without licenses and without regulation. People are smart enough to make their own decisions but also have to suffer the consequences if any.

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Inflation Tax

If we want to solve the low paying jobs, we need to look at the underlying issue. The biggest issue is the hidden tax through inflation. Prices on almost everything have risen due to inflation. The Federal Reserve prints endless amounts of money which raises prices. This is what destroyed the middleclass. The money printed benefits the people who receive it first, by the time it reaches the lower classes it has lost value.

Outcome

The minimum wage results in less jobs, higher prices, less customer service, and a bad economy. These laws have been destroying the skills needed to drive this country forward. They are hurting younger generations from learning skills and being productive in society. We need to repeal these laws and let people go back to work.

Milton Friedman on the minimum wage

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@johnnyyash