The greatest cost of doing business for most organizations is labor. A raise to minimum wage is not borne by the big bad corporations but is borne primarily by the low wage workers where increases in the cost if living cannot be sustained. The corporation passes the costs of wage increases on to the public in the form of higher priced products.
Let's just assume for a moment that I am a minimum wage worker at a large retail establishment. As my wage goes up, so do all the wages of people who have seniority over me. This increased wage gets translated into higher prices for the products. As a low wage worker, I likely shop at the discount retail establishments for the goods and services I need. If the only increase my employer has is wages, the prices should increase to match the increase in my wages. Net-net no gain for me the low wage worker. The only thing that really changed is that the living wage is now higher and I still don't make enough to live a comfortable lifestyle.
More than likely however, the cost if goods purchased also go up because the inventory prices go up when the producers and wholesalers have to pay THEIR employees more. That means for me working at the retailer the prices on the shelf will have to increase by MORE than the increase in my salary and may actually have my lifestyle diminished by the increase in wages.
Beyond that, in order to continue to remain competive, my employer will likely have to reduce jobs or find ways to outsource activities overseas using less expensive labor to remain in business. My benefits will likely be cut, or have more of the cost transferred to me. I bear the cost because I really don't have alternatives. Bottom line: the bottom is still the bottom.
The solution offered by government is to step in and offer assistance in the form of entitlements like welfare or food stamps or tax credits. That only serves to demean me more because I now become dependent on handouts rather than becoming self sufficient. Handouts discourage hard work because people adopt an attitutlde of complacency feeling that they can't change the "system".
The real solution to poverty is not in handouts or layers of government protections, but in empowering the people with education and inspiration to take control for themselves the outcome of their story. The United States has always been the place where even someone from a poor background can achieve their dreams with hard work and a good idea. We need to encourage the development of entrepreneurship and encourage excellence in our children.
This is a nation where opportunity still exists if people will only embrace the challenge. We are also a nation that cares for our disabled and disadvantaged. I encourage government to let charity do what it does best - invest in the lives if those with fewer option.
Rather than raising minimum wage, consider moving the charitable deduction to the front page of the tax return so you don't have to itemize to reap the benefits or better yet create a tax credit for charitable donations and see if our communities don't thrive. Charity has the incentives and the know how to build opportunities for those who are most vulnerable. Raising the low income up with job training and education to grow the economy rather than tearing it down.
The Bible outlines our resonsibiilities to the poor and the downtrodden. Charity not business or government are best at transition. Government only increases dependence. I believe Christian charity is best equipped to perform local mission and to provide for not only physical needs but spiritual as well.
Christians live in a time where there is great need for hope. We have it to give. Let's be generous in our distributions.
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