To be honest, I was largely unsatisfied with my post on the minimum wage last night. It was just…meh. So I decided to try again and present my case against the minimum wage in a different way.
As I had mentioned, in order to truly understand the issues regarding minimum wage, it’s important to understand the root causes of why people even think that it’s the solution. Inflation is the elephant in the room: it’s one of the major reasons why people feel the need to continuously bring up the idea of raising the minimum wage though it’s never actually mentioned. So raising the minimum wage just once will not solve the problem—it will always need to be raised as long as there is inflation. And it will never be raised enough.
In other words, raising the minimum wage is chasing the dragon.
What would you tell an addict who is destroying his body and his life by taking heroin over and over again in order to escape his problems in life? Would you tell him that he’ll achieve satisfaction and the pinnacle of heroin experiences when he takes his next hit? Or would you tell him that taking heroin really probably isn’t a good way to solve his problems and it’s better to get off heroin and go after the sources of whatever is causing him to suffer?
The minimum wage is heroin. Sure, it seemed great the first time they passed a law on it. But then some time passes, and the current minimum wage just isn’t enough anymore. You need more. So they raise it again. And then, to your surprise, you still need more and more and more. It’s just never enough. Inflation is always knocking the value of your wage down a little bit.
You’re lucky if you still even have a job once you reach this point (if you’re on minimum wage that is, but the same can be said of heroin). The rising minimum wage will make the people who cannot produce enough so their employer does not lose money on them will be laid off. Those who lose their jobs will turn to even more drugs, er, I mean, government assistance programs to make up for what the minimum wage lost for them. Even those who retain their jobs will end up on these programs to supplement their needs.
It’s just a painful, downward spiral that gets out of control before you even realize it.
But it doesn’t have to be this way. If the government were to stop their inflationary practices, the minimum wage would be a moot point. It wouldn’t matter—you wouldn’t need it. Still, there are not too many indications showing that the government will stop inflating the dollar supply. However, there is some hope. One of these hopes is bitcoin and the world of cryptocurrency. Cryptocurrency isn’t tied to a government’s inflationary whims and the choice of which cryptocurrency to use is up to you. While not the most popular of methods now, getting paid in bitcoin (or whichever cryptocurrency is agreed upon) will help remove you from that nasty cycle of minimum wage.
What do you have to lose—the purchasing power of your fiat?