Friday, March 05, 2010

Who decides what salaries should be.

Salaries are the amount of money exchanged for labor, both physical and mental.

The basic law of economics is the Law of Supply and Demand:

The more an item is desired, the more the owner can charge to sell it.
The less an item is desired, the less the seller can get for it.

Labor is just as subject to these laws as any other good. The more people wanting to do a job, the less the employer must pay in wages. The fewer people who want a job, the more the employer must pay.

No amount of legislation will change this law of the universe.

Now, what happens to salaries when millions of criminals (the definition of ILLEGAL alien) are competing for jobs? The salaries go down, right? What would happen to the salaries of those same (undesirable) jobs if there were no illegals? Prices go up because the factories they work in simply must have the labor.

What happens to salaries when we institutionalize our babies from the day they are born and send mommy into the workforce? Again, salaries go down. This puts us in the position in this country where we have to have two salaries in order to survive because wages are kept artificially low by all the families with two incomes. Talk about a vicious circle!

What does minimum wage laws do to the equation? Nothing.

Minimum wage laws force employers to pay more than the market demands for certain jobs. They must then raise prices to compensate. Now it costs more to live, so the minimum wage earner is in the same place they were in before the law. I’ll give you an example:

At $1 per hour a man used to have to work 50 hours to pay a month's rent on the average home.

Fifty years later, minimum wage laws forced his employer to pay him $10 per hour, but rising expenses means he now has to work, uhhh, 50 hours to pay one months rent on the average house. So big deal; we added a zero to everything. We didn’t help Mr. Workingman in the least.

What we did do is make it so Mr. Employer won’t higher anyone who is unskilled for even unskilled labor. That very poor person the law was supposed to help is now unemployed because, well, if you have to pay $10 per hour anyway, you might as well hirer the college grad, right? Why would you hirer the dropout? Now if you were allowed to choose between the college grad at $10 and the dropout at $8 you just might take the dropout. This levels the playing field allowing everyone a chance to compete.

Ahh, but then we wouldn’t have the ammunition necessary to force untold thousands of young adults that they must stay in our indoctrination centers (schools) well into adulthood, but that is a different post.

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