From the Union Leader, my brow first furrowed and then LMOA:
Increasing state’s minimum wage debated
“Paying decent wages is a good investment for our economy,” said Senate Bill 412’s prime sponsor, Sen. Donna Soucy, D-Manchester. “Well-paid workers are better employees and better customers; their spending helps sustain our businesses and our economy.”
The state’s unemployment rate is the fourth-lowest in the country, and all other New England states have higher minimum wages, she said, which puts New Hampshire businesses at a disadvantage. Even companies like Wal-Mart have recognized the benefits of raising wages in order to retain workers at their stores, she said, noting a recent company announcement that it would raise what it pays both full- and part-time workers.
Seriously, is State Senator Donna Soucy absolutely incompetent in things economically? First, while one might think that “well-paid” workers may be better paid employees but artificially enhanced (via government meddling) isn’t going to make low skilled (and thus lower paid) employees “better”. In fact, as we are seeing in places where the “spread the wealth of other peoples’ money around” Democrats and Progressives have already done this (e.g., Seattle, Berkley), some employees have become “no-paid”. And the simple truth is that raising the minimum wage doesn’t make them “well-paid” – they are still at the bottom of the barrel due to their low economic worth to their employer.
And she doesn’t say much about wage compression either. She must have no idea of how that additional cost is going to impact business owners, not just at the bottom level but right up through the top – EVERYONE is going to want a raise in “reestablishing the pecking order”. After all, when someone who is already making $12/hour because they have bettered their services to their employer is suddenly confronted with a person hardly the skills getting the same wage, what effect will that have on them? Let the grousing being! Or rather, the more experienced workers vamoosing to greener fields – and that will not be good for the business, will it?
And how about the extra taxes that will be needed to be paid on this government mandated payroll increase? Oh, I guess Soucy thinks this will be just GRAND – MORE money for Government!
But, Democrats just want to be employers to become “the welfare state” instead of government.
It is that second ‘graph is what bunched my knickers up –
…all other New England states have higher minimum wages, she said, which puts New Hampshire businesses at a disadvantage. Even companies like Wal-Mart have recognized the benefits of raising wages in order to retain workers at their stores, she said, noting a recent company announcement that it would raise what it pays both full- and part-time workers.
Let’s quickly fisk it, shall we?
- puts New Hampshire businesses at a disadvantage
WHAT A DUNCE! HOW the heck does having a lower minimum wage disadvantage a NH business? Lower wages generally means lower prices (unless Soucy, like Bernie Sanders type Socialists, believes that all company owners are EVIL and exist only to rob their employees) which means it increases the possible universe of buyers. More volume would mean higher profits (even if at a lower marginal profit margin – something I bet Soucy doesn’t even understand). Isn’t that a GOOD thing – more money to expand and higher even more employees and providing employees that have proven their ability to help the company more money?
- like Wal-Mart have recognized the benefits of raising wages
Regardless of what I said just above, good companies DO want to pay more for those that have earned it. They understand the value of keeping experienced, knowledgeable employees – AND NITWIT SOUCY BELIEVES GOVERNMENT NEEDS TO TELL PRIVATE COMPANIES THIS? I’m sorry (ok, I’m not) but this is just someone out for control and is flipping words hoping some of them might stick on the wall.
Companies have done this for centuries, Senator; they don’t need your ill-conceived mindset and ideology to do what is best for their company. It shows that Soucy believes that everything is static (and I found this to be true of most on the Left) in the Govt can decree the [economic] tides will flow at their command (I bet Soucy would love to be wearing Canute’s crown).
And in the end, her bringing up Walmart (WHAT?? A Democrat praising Walmart? Heaven save us!) completely annihilates her own argument. She’s trying to make the case that ONLY Government watches out for workers – and then demonstrates that Walmart is taking care of its own employees all by their lonesome, thank you very much. See – companies DO act in their own self interest.
When TMEW and I did exactly that when we took over a broken down, almost defunct, daycare center was to raise the daycare workers wages (right after I went out and spent $10,000 on new equipment for the kids to use and the workers to teach with). I didn’t have to wait for government to tell me to do something – I wanted those folks to stay. And then a while later, I did it again – it was in my own self-interest. But I also hit a limit of what I could pay them, given how much we could charge for our services. I was not going to continue to pay them more and run a loss (after all, we were still rebuilding the center’s capabilities and I wasn’t even paying TMEW a wage for being the Director).
And that’s what Soucy and Democrats like her don’t understand – when it is possible and it is needed. She and her ilk always only consider it when THEY think it possible and not the business owners who really know what their conditions and situations really are.
Let’s me put it this way – if I was contemplating doing it all over again today, I wouldn’t do it. I would not make the sacrifices again and those 7 people would be jobless. When GOvernment makes things impossible, those things will just not happen.
