Monday, February 16, 2009

Minimum Wage

There is a trend recently reported in the Wall Street Journal. Restaurants are getting rid of their busboys. The minimum wage has made them too expensive for restaurants to keep on staff. Now the wait staff is clearing tables and bringing water glasses.

This is part of the law of unintended consequences brought on by a high minimum wage. Perhaps the aim of a minimum wage is good, but it just does not work. Those who are on that low margin will be eliminated. How is that better for those just starting out in the work force or who don’t have the language skills to keep up?

Staff costs are expensive. That is one reason you fill your own cup of pop at McDonald’s. Some fast food restaurants are using order kiosks where you press the buttons and pay without one of their staff involved. More entry level jobs eliminated.

I have asked liberal politicians for years to defend their high wage positions. None have answered me. If $6.55 is good, why not $16.55 or $25.00 a hour? Wouldn’t it be great if everyone made $50 grand a year?

No it wouldn’t. Many people are not worth $6.55 an hour. At least not today. After they have some experience—yes, but today they might only be worth $3.00. It sounds harsh but a low wage is motivating.

After high school without much direction, I got a minimum wage job in retail during a recession with high unemployment. No benefits and a lot of nights and weekends. I worked my way up to assistant store manager. Then I made about $0.35 more an hour than minimum wage. That experience told me to go get a college degree.

If these now unemployed bussers are not worth minimum wage where do they go to get experience for a position where they would be worth it?