People around the U.S. are protesting for the government to increase federal minimum wage. What do you think?
18% - Agree: minimum wage should be increased.
82% - Disagree: the market should set labor prices, not government.
Before any commercial product or service can be offered to customers, the price must be determined. The foundational element of the price calculus is the cost, which includes payroll. In a true free-market economy, all elements of cost are determined by the marketplace.
But in the U.S., we don’t have a true free-market economy because the government sticks its nose into the equation with mandates and subsidies, one of which is the federal minimum wage. When the government is involved, politics, not reason, is the motivation, which is fine when the issue is politics. But when the issue is the price businesses pay for one of its cost factors, especially what is often the largest cost factor, politics has no place. At least, as you can see from the results of our recent poll, that’s what 82% of small business owners believe.
I’ll have more to say about this son in our Feature Article. Stay tuned and thanks for participating.