Minimum Wage

I work for nearly minimum wage- $7/hour - when the minimum wage is $6.45/hr. In July, the minimum wage goes up to $7.55 an hour, and my manager will probably just round that amount up to $8 an hour. I'm pretty excited about my $1/hr raise, even though I will be leaving soon, but minimum wage is not exactly the best thing for an ailing economy. First, it creates a gap between the amount of employment demanded and the supply of employment. This gap is referred to as UNEMPLOYMENT! Run and scream everyone! No, calm down. But minimum wage serves a price floor, which means the "price" of employment must sit at or above this floor. Price floors (and ceilings, such as rent control) create a gap between supply and demand. The main purpose of minimum wage, I think, is to appease constituents. Employers must raise prices or fire employees in order to keep costs low, and since prices are difficult and unpopular to rise, employees must be let go. Sorry, oh large and all-powerful government, but your attempt to raise the quality of life actually just gets people fired.