A Living Wage – Why Those Evil, Greedy Corporations Just Won’t Pay It

I get so tired of hearing this complaint.

A Living Wage?

My first question is, just what defines a living wage? Considering there are hundreds of millions of people living (barely surviving, but living) on less than $1 a day, I’d say just about any wage you earn in any developed country is a living wage.

Then the question becomes then what standard of living constitutes a “living wage” here? Let’s boost it to enough food to not be malnourished, a roof over your head and clothes to wear to fit the climate. If you’re willing to do what you need to do, even a minimal part time job covers that with money left over.

What’s next? A car? A private apartment? A cell phone? Air conditioning? Cable? Video games? Name brand sneakers? Who decides? Heck, I’ve only got three of those.

Oh, those Greedy Corporations

The next part is if a particular business is even able to pay what someone considers to be a living wage. While a business can pay people significantly less than they’re worth for a short while, especially in a tight job market, but what they can’t do, ever, is to keep paying people more than they are worth. An employee has to contribute more to the bottom line of a business than the total costs of hiring them.

If an employee makes the company $10 for every hour he works and you raise the minimum wage to $15 an hour, guess what … he’s out of a job, no matter how much he needs it. A business can’t afford it to be any other way and still stay in business. That’s not being a greedy corporation, it a business necessity.
If you increase the costs of having an employee by adding in mandates of any kind, same thing. An employee HAS to be worth more than they cost, whether that cost shows up directly on a paycheck or not.

And It Keeps Getting Worse

That’s what ALL externally imposed costs on employers do. They price people out of jobs by making it more expensive to hire them. They don’t allow a person to work cut rate while learning how to do a job, so they never get to learn what they need to get a better job, if they can get one at all. It drives people out of business or they never start one to begin with. That means even fewer jobs.

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Posted in Economics.