The Minimum Wage

Why abolish the minimum wage?

The number of people being paid in the labor market are being paid well and above the minimum wage. In 2005, according to the Heritage Fund, the amount of people earning the minimum wage was 1.5%.  But what about that 1.5%? While they are not getting raises in their pay packet, they are getting money in other ways through tips. These people on paper remain at minimum wage but they are earning far and above that!

The other section of society who earn the minimum wage are students and people under the age of 25. But their mindset is not this is a job for me for life. This is a low paying job, and if I put in the hard hours then there will be many benefits and opportunities that come from this - so this is only a short term situation which will lead to a long term opportunity.

What about those people that are actually earning the minimum wage. These people are mostly like in government housing, earning food stamps and on welfare. This is their way of earning more than the minimum wage.


The minimum wage should be abolished because it is hurting our economy, and the wider international economy. The minimum wage on the one hand ensures a potential worker earns a certain amount of money. But what it also does is push people out of the labor market.

There are many menial jobs that must be paid minimum wage for companies to employ someone to work them. But are a company going to pay minimum wage for such menial tasks. This is why there is such a problem with illegal because they are working these menial jobs and are being paid most times cash in hand well below the minimum wage. They have no case to fight for the minimum wage because they have no legal working status.

If the minimum wage was abolished this would open up many jobs in the labor market for a country's citizens. If the job is worth $2 for the menial job then this is what the company could pay, whereas before they could not because they had to pay the minimum wage.

And how would this put more people (who were previously eliminated from the labor market) back into employment? Before, when they were out of work they were earning $0. Now they have the possibility of earning $2. Common sense would say earning 2 is better than earning 0. The incentive for the company is efficiency. They are getting their monies worth for the wages they are paying.

This brings us back to the simple concept of supply and demand! If there are people available to do the work then there are companies that can supply the jobs.  And if there is no minimum wage, the company can supply far more jobs at a price that is determined to be suitable for that job. With the minimum wage the demand would be far greater than the supply because the companies must pay a certain wage and the consequence being employing far fewer people. This leads to inefficiency. The incentives for employers employing people suddenly decreases. Can they afford it?

So this is why the minimum wage should be abolished, and if you are not convinced with all of the above, then just think the minimum wage is another way the government can control and run our lives. If someone said they would pay you one dollar an hour to wash dishes, 99.9% of us would say "Hell NO".  But unconsciously this is government saying that we need a law to say businesses can't pay us less than a certain amount. Excuse me, what happened to personal choice? Why encourage something that limits our freedom????

Keep chuckin them deuces!