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The grand experiment of free markets continue. Although we are still bound by many federal and state restrictions, the United States economy greatly benefits from a mostly free market based economy. However, we are starting to see a shift in our workforce from producers of product to service and technology.

As this change occurs, companies must learn to compete in a world market. Minimum wages create a false bottom to the economy by forcing wages to begin at a certain level. Removing the minimum wage would cause and immediate, but temporary drop in wages. When the free market begins to adjust, wages will begin to rise.

Competition for good workers will create incentives for increased skill levels among workers. Those workers, will in turn, seek additional training. As the workforce at the lower end increases skills, it will cause upward pressure across the country in increased skills.

Eventually, the U.S. will become far more competitive in the most productive markets of technology and service because of a highly-trained workforce willing to adjust their pricing with the ebbs and flows of commerce. At that time, the U.S. will once again become the economic giant of the world ever increasing our standard of living.

Learn more about this author, Tim Knight.
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