Politicians in states all around New England think they are economic geniuses. They know how much an hour of labor is worth for every job, everywhere? No! They don’t. But that hubris is New Hampshire’s gain as the New Year looms, and they force the cost of labor higher.
Related: Democrat’s Arbitrary Minimum Wage Laws Are Killing Jobs in a Booming Economy
The minimum wage goes up in half of New England on January 1st. Massachusetts continues to lead the way, with its minimum wage increasing to $12.75. Maine is not far behind, with a boost to $12.00 an hour. In Vermont, where increases are tied to inflation, the minimum wage rises 18 cents to just under $11.00 an hour.
In New Hampshire, which has the strongest economy and job growth, we don’t have a state-mandated minimum hourly wage. We use the Federal minimum of $7.25/hour, not that many if any earn that (or for long).
A Great economy needs workers, and when that happens, wages rise on their own. Labor becomes a premium. People with skills can earn more and learn more. People without them can acquire them for more. No meddling by busy-body legislators required, which matters. A lot.
In states and cities where the elected economic geniuses have defined the cost of an hour of labor about its value (which is everywhere), prices rise, jobs are lost, and businesses close. It is a sad but very real fact. People trapped in those places can end up homeless and do. The length of the left coast is littered with former jewels to free-market capitalism destroyed by liberal meddling. From rents to regulations to wages. Busy-body legislators have taken over the marketplace and destroyed the natural balance.
New Hampshire, so far, has managed to avoid that pitfall. A trap its Democrats long to snap. A trap into which all of the states around us are falling.
Where their business owners will need to raise prices, cut hours or benefits, and trim staff, New Hampshire looks to add all of the above. A fact that will attract more business, more labor, better wages, and benefits, and more commerce from surrounding states (lower prices and more choices). All of these things will create growth, opportunity, and tax revenue without raising taxes.
It’s the best possible way to raise revenue. Stay out of the way and let the marketplace bring it to you. But Democrats, and some Republicans, can’t help but feel the need to get involved. Voters and taxpayers should encourage them to keep their distance. If the legislators refuse to listen, they should consider it imperative to replace them with legislators who will.
More on the Grok about minimum Wage
| NHPR