Sunday, January 31, 2010
Frank Newman: The Minimum Wage
The government last week announced an increase in the minimum wage from $12.50 to $12.75. Of course the Greens condemned the increase as inadequate (they and their union comrades wanted it increased to $15).
One can understand why anti-business activists are calling for an increase. There is some (albeit minor) legitimacy in their argument in that there is a minimum amount a working person needs to earn to survive. But here’s the question: Why should the employer take the role of a welfare agency by paying a person more than they are worth to the business? If the government wants workers to have a minimum income level then they should provide it through the tax or welfare systems.
Or is it that the government does not trust employers to pay their staff a fair wage, and everyone regardless of their abilities or inabilities is worth $12.75 an hour?
at 7:50 PM