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First of all, I think we should clear some things up.
Many "illegals" are working here legally in agriculture, food service, hospitality, etc. Just because they are not American citizens does not automatically make them "illegal". They pay taxes, and employers take out witholding for SS, etc.
Many migrant workers also make far more than minimum wage. That is because they are paid by the piece, not by the hour. It is a fair system that compensates higher performance with higher pay, while paying less to the lazy unproductive worker. They are not stupid. They go where they will make the most amount of money.
If you work in ANY company that has minimum wage workers, then you will see less available to pay your raises, bonuses, etc when minimum wage is increased.
I have a crew of around 12 to 14 workers. Since we started over 4 years ago, I have paid over 14 raises. I have lost track of the number of bonuses. Probably 20 or so. Minimum wage was around $8 per hour. Everyone was making money, and our vendors were keeping their prices low enough to make everything make sense. This understanding that I will reward good employees with higher pay is an essential part of my business. The relationship with my best employees is what makes the company go.
Then last year the minimum wage went to $9. Everyone had to raise their prices. When the minimum goes up, your LEAST PRODUCTIVE EMPLOYEE, the one with zero experience, lazy, spends all day sitting around or on his cell phone, gets an automatic raise. This also raises payroll tax, insurance, and workman's comp.
Since last year, when the minimum wage went up, I have paid zero raises, and zero bonuses. Why? Because of the cascading effect of the mandatory minimum wage. If you notice, a #1 Value Meal at your favorite fast food joint is approaching $10 now.
So this fallacy that raising the mininum wage will give the entry level worker more money, or make him "feel like he has more money" is just flat out ridiculous. It's the type of idea that pops into the head of someone who has zero experience and just wants feel-good, no-think laws.
If you eliminate minimum wage, then the first thing that will happen is that inflation will drop. Then the lazy worker will realize that he's got to treat a job like a job, not as a right. And the best of the employee labor pool will be rewarded with the highest pay. If you eliminate government regulation in the labor market, the best will rise, and the worst will fall. Everyone is kept at a false equal as minimum wage increases. And we all pay for that.
Last edited by rusnak; 04-22-2015 at 11:29 AM..
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