Delivering tough love on the living wage

We are becoming an increasingly lazy society. We want simple solutions to complex problems and preferably we want someone else to do the work and pay the bill.

Consider for example, increasing the minimum wage to $15.

Politicians promise that by creating a living wage we can eliminate welfare because families will be able to provide for themselves.

Have those politicians actually promised that if we pass a $15 minimum wage that they will cut government spending and reduce taxes on private business to offset the higher costs to the business?

Don't strain your lazy brain - the answer is no.

So the cost of labor will rise, in some cases significantly. \The increase does not just impact people currently making the states minimum wage of $9.47.

Everyone making less than the new $15 minimum will get an increase so labor costs for the business will escalate from 5 to 58 percent for every business in the state.

What is a small business to do? Close the doors? Raise prices? Cut staff?

None of these options are good so what is really being accomplished?

If the business raises prices in order to pay for the increased cost customers will buy less so then the business must cut staff to offset the declining revenue.

Who gets cut first? Again, don't sprain your brain, - the employees who are the least skilled or least productive will be cut first.

The net effect is the people who most need the help are going to be the first to be let go.

The first efforts to establish a minimum wage began in thirties and we have been at war against poverty since the mid 70's.

Has anything really changed? The national debt has soared, wages have stagnated and those living in poverty have remained relatively unchanged.

The conclusion - government mandates and regulations do not produce the intended results.

It is time to engage those lazy brains. We have to find a better solution. We need a solution that doesn't pit one group of Americans against another.

We need to find positive, win-win solutions that inspire hope and pride in being an American citizen.

First, let's recognize that the minimum wage is not really the problem. It is only a ruse to get us to support the issue.

Consider the following; two thirds of minimum wage employees are working part time; only 23 percent are married; the average household income for a 77 percent of minimum wage employees is $53,000 - only 23 percent of minimum wage workers are at the or below the poverty line in income.

This law is not about making sure someone can support a family of four on a minimum wage job.

Those arguing for a "living wage" are partially right. The money going to those currently earning minimum wage will produce a boost to the economy in the short run.

The downside is the approach is most likely to create inflation ultimately hurting those we are most trying to help.

In other words, it is a feel good solution but not a real good solution.

We need to consider some new solutions to the problem. For example, what if we developed a new "tax loophole" for businesses that created positive tax incentives to employers that engaged in progressive employment policies?

In other words, instead of punishing businesses for their employment practices we reward them when they utilize more socially desirable employment policies.

Instead of exempting businesses based on size or number of employees, all would be equally eligible.

The reality is that businesses don't pay taxes, individuals do.

Encouraging businesses to pay their employees more in order to reduce their corporate taxes could be a positive way to improve individual earnings without mandating an artificial floor for wages.

It is also time to re-examine our overly complex system of welfare benefits.

For example, the earned income credit could be restructured to guarantee working families earn a minimum family income instead of a myriad of welfare benefits requiring multiple agencies and truckloads of paperwork to qualify.

Government does not create jobs. Private sector businesses create jobs. Instead of punishing private sector employers for providing employment opportunities we need to encourage them to provide more opportunities.

Opportunities that pay living wages, encourage individuals to improve their skills and work toward becoming free, independent and self sufficient.

It's what made America the envy of the world. We can do it again,

Not by emulating the failed social systems of Europe but by finding that truly American, free enterprise system that rewards success instead of punishing it.

A system that encourages the successful to freely share their success not confiscate it.