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The concept of minimum wage is to protect unskilled employees from employers who might not otherwise pay that amount. It was established so that workers would be paid enough to have a chance to survive. The federal minimum wage is $5.85 per hour. Many states have minimum wage laws that require employers to pay more than the federal minimum, but five states have no such laws. Washington State has the highest minimum wage at $8.07 per hour.
Minimum wage is not only not fair, it is a cruel joke.
PROTECTION FOR UNSKILLED WORKERS TO BUSINESS STRATEGY
Despite minimum wage laws, many employers of yore paid their help well. It was a good for business to find top-notch, loyal employees, and compensate them well enough to retain their services. Customers enjoyed competent help from employees who took pride in, and enjoyed, their work. The companies with the best customer service expanded. More and more of these stores began competing against local companies that had to either offer lower prices, or match the customer service, to retain clients.
Somewhere along the way, consumers began placing less emphasis on customer service, and more emphasis on prices or the convenience of being able to alleviate two or three stops for one. As this began to manifest into business strategy, companies that paid employees well, and those that specialized, began losing clients to companies offering lower prices and greater selection. The companies that did not alter their practices went out of business, or were sold to larger companies.
Today, those entering the work force at minimum wage accept jobs with very little chance for financial growth. This may be fine for a high school student, or someone trying to work his or her way through college, but we are seeing more and more adults and retirees resigning themselves to minimum wage jobs. Without a secondary source of income, these people have little chance to survive. Often the secondary source of income is some form of stipend in the form of welfare, food stamps, and/or medical allotment. When it is calculated that way, consumers do not really save much money over paying higher prices so employers can compensate employees adequately to survive.
COMPARING THEN TO TODAY
I entered the work force in 1974. At that time the minimum wage was $2.00 per hour. I was able to buy a gallon of gas for about fifteen minutes work. I could have bought a house for about 1,250 hours of work. Today, someone making minimum wage must
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