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The idea of raising the minimum wage,at least on the surface ,is a good idea. For awhile it will give the lowest wage earners a boost. It doesn't really last though. It is a temporary ego boost to the low income earners and usually occurs right before a major election.

When we raise the federal minimum wage it gives a quick boost to the spending power of a few. The thing is, manufacturers and retailers immediately start to adjust the prices on their goods and services to offset the additional costs they incur in labor. The only businesses that are not on the initial bandwagon to raise prices to offset the increase in minimum wage is those places where all there employees are already earning more than the minimum wage. They will not raise their retail prices immediately. This gives them the opportunity to sell their products to those that received and increase in minimum wage. Then after they have tapped that market their prices will raise to.

The higher wages will only makes retail prices go higher. If minimum wage is set and individuals can not purchase some things then raising the minimum wage will not cause them to be able to purchase these things or more of something else. It only means the working individuals that do not get an increase because their pay is already above minimum wage will be able to purchase less. The rising costs will make their pay less valuable.

Everyone deserves a fair wage for the work they do. However, on the same hand it must be noted that wages alone do not control the buying power of our money. Interest rates, supply and demand, and even education and geographic area where someone lives dictate more than wages whether or not we can purchase some things in life.

We must just concede the fact that not every worker in America is going to be able to have what others have. It is the nature of the beast in an economy. You will always have the people who live below the poverty level, the middle class and the upper class. There is no way to make a society with a free economy have no poverty stricken citizens.

Learn more about this author, Stanley Roberts.
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