Richmond Times-Dispatch

January 22, 2006

Yet again, we see our legislators discussing the possibility of raising the minimum wage. The reasons given are the usual: a. The current minimum wage is not a "living wage", b. how can anyone support a family on such a wage? Etc., etc.,...

I realize that everyone should know this, but alas, I am compelled to make an obvious point. The minimum wage is NOT meant to be a "living wage". It is an introductory wage into the workforce. To artificially raise that wage, by having the government intrude into a free-market, will cause more problems than it will solve. Allow me to cite just one example.

As a former business owner (family owned supermarkets) I speak from real-life experience. Let’s take the example of high school boys and girls who wish to take on part-time or summer jobs. They have not yet gained any marketable skills, as they have not finished their education. Therefore, they need jobs that allow them to gain said experience and inculcate a good work ethic into their character. This is where the minimum wage comes in. A business owner is certainly not going to pay a high wage to someone who is just starting in the workforce and has not yet proven his or her worth to the company.

At my family supermarket we hired many of the local youths to bag groceries and put up stock. When the minimum wage was left at a lower rate it was beneficial for the business as well as the young people who wanted to start in the workforce. However, several years back when our business geniuses in the government determined that the wage MUST be higher, things changed. My experience was no different than many other business owners. Because we now faced the prospect of higher overhead (higher wages) we could either raise prices (not in the customer’s best interest) or we could let people go. As many did we opted for the latter course.

Instead of hiring several young people to help with the more physical work we simply hired older people who were able to do more for the same pay. Again, these were usually locals who wanted part-time work or folks for whom the minimum wage was acceptable. When they became more valuable to our business, and proved themselves an important part of the business, they were rewarded with higher pay and benefits.

If the State legislature has it’s way and raises the wage again, there will be many young people who will remain unemployed. This is simply Business School 101. A free-market and the consumer should determine what is a reasonable wage. Once the government gets involved no good can come of it.

Sincerely,

Floyd C. Bayne