New Minimum Wage? Worth It?

 

$15.00 Minimum Wage

By Dr. G. Brooks

   

First, let’s start by saying this. This is not a Republican issue or a Democrat issue, or a Biden issue or a Trump issue. This is a Business and Economical issue some people might have not considered. As most of the readers here know, President Biden has made it known that he wants to change the Minimum Wage pay from $7.25 per hour to $15.00 per hour. It sounds good in theory, but let’s look at some things.

Most people do not realize that if the Minimum Wage goes up, to cover costs, employers as well as business owners are going to have to raise prices to cover this overhead. So for example, if your McDonald’s Happy Meal costs $3.99 at the moment, in all probability, the costs will be raised to approximately $5.99 to offset the cost of the Minimum Wage increase. Services that are provided will have to increase their prices.

Let me say from the start that I am in favor of an increase of Minimum Wage. No one can live on $7.25 per hour. However, it should be a gradual increase so that a business can rework their Business Plan, hopefully not putting them out of business, but making it profitable for them to continuing to stay open. A drastic increase, such as $15 per hour, may and can put a business out of business.

Now, let’s take a step in another direction. There needs to be an increase in pay for certain professions. While doing research for this article, I found that a local Ambulance Service is paying its EMTs less than $10.00 per hour. We have one City that pays its Police and Fire Service employees slightly above that. These people have to live in Government Subsidized Housing with their families due to their pay. That is very sad.

Employees should take pride in their work. It is a privilege that they can work. It’s a job. Act responsibly and get paid according to that. One of the areas that I have heard, stating they should get a big raise, is the restaurant area. I will say that I agree with this to an extent. Since most restaurants pay their employees by tips, a standardized pay system could help them.

However, let’s look at an example that happened last night when I stopped at a local Sonic on the way home from the Hospital. I drive to the speaker to order. I order a Foot Long Hot Dog Combo with mustard only. This is what transpired:

Sonic: Can I take your order?

Me: I would like a Foot Long Hot Dog Combo, Mustard only.

Sonic: Foot Long Hot Dog Combo, is that all?

Me: Did you get the Mustard only?

Sonic: You just want Mustard?

Me: Yes, please

Sonic: No Chili?

Me: That is correct

Sonic: Does that mean you don’t want Cheese?

Me: That is correct. Mustard only

Sonic: So no Chili?

Me: I want a bun, a hot dog and mustard only

Sonic: Drive around

Let me interrupt for a moment. As I drive around, I see two females dancing inside the store. I am not just talking about a slight swaying, but a full dance including twirls. Must be Happy Hour at Sonic. I get to the window and the female hands me my order. As I check it, I see it has Chili, Cheese and Mustard. I hand it back to her and tell her it is not my order. She looks at it and asks “why?’ I explained to her that I wanted Mustard only.

A few minutes she comes back with another hot dog with Mustard only. She hands it to me and says “Here is your Mustard dog.” Looking at her, I think to myself, “and this is what $15.00 per hour gets you?"

But wait a minute; we have a closing statement that wraps this story up just right. She asks me if I would like a napkin? I look in the bag and see that there is not napkins. I look at her and just say “yes”. Here is the best part. She hands me one napkin. I have had enough. I just leave. $15 per hour?

So sad.

The Heartbeat of the Shoals Area