Minimum wage. Is it a good thing or a bad thing? There are definitely two camps for this argument. In my opinion, both have very solid arguments. Minimum wage prevents exploitation and makes sure that workers are receiving a fair break for the work they are doing. On the other side of this is that a minimum wage increases the cost of production, which then increases the cost of goods. One would hope that the wages that were being brought in by the worker would return to the company in some way, but it doesn’t always work that way. In this modern society, with NAFTA and free trade. I would argue that a high minimum wage is actually hurting job creation.
Let me explain: because of this high minimum wage we have in the United States and the political climate of the early 1990s, companies began to move their production facilities overseas. This wasn’t a huge problem in many places (yes, I know you could give me a list of places that it was a problem–starting with the entire state of Michigan), and consumers began enjoying these lower-cost goods. Now, we have a problem: Americans expect low-cost goods in an economy without many service jobs. Workers enjoy a decent minimum wage, but if we begin moving manufacturing into the United States, costs would go up, and then that minimum wage wouldn’t go as far. Basically, the cost of everything would have to become lower for manufacturing with a decent minimum wage to work–from the materials to the people. I guess we shall see, but I don’t see any way anything will change.