Wage increases will not benefit many employees

Publication Date: 08/21/2006

In regards to the recently proposed and happily defeated minimum wage increase. A government-enforced increase in wages is not going to benefit anyone. Employers have a certain budget for employing labor and when the price of that labor increases, no matter how incrementally, they have to off-set the cost in some. Either they'll have to charge more for their product or cut costs in producing it or both. The most likely method of which is simply to reduce labor, as it's the source of the problem.

In other words, if an employer has to pay more per employee, he'll make due with fewer employees. Just like when anyone finds a necessary increase in their budget and they have to do without something to cover the costs. The same holds true if you were to argue that a company should take that money out of their profits, because a company doesn't just sit on a pile of money. They use their profit to invest back into the company in research and development, invest it in general, or pay dividends to their shareholders. There isn't an unlimited supply of money and rearranging where it goes does not create more.

So when you applaud the wage increase consider your own job, are you a necessary asset to your company or are you expendable to pay for someone else pay raise? And if you think it's OK, your position is secure you could use the money, consider who's paycheck you're receiving by governmental mandate.

It's disgusting that the government puts us in this position, of sacrificed and sacrificee, by rearranging wealth.

Amanda Carlson,

West Lafayette, Ind.