Thursday, May 31, 2007

Interesting Arguement About The Minimum Wage....What Do You Think?


Human Beings Are NOT Chess Pieces

Thursday, May 31, 2007
"Millions of employees are being paid far too little," argues the Union Organizer. "We need to raise the minimum wage to $7 or $8 an hour."
"Thousands of Americans are needlessly dying in traffic accidents because they aren't wearing their seat belts," saves the Safety Advocate. "We urgently need mandatory seat belt laws for all drivers and passengers."
"Millions of Americans do NOT have health care insurance," says the politician. "We must pass laws requiring employers to provide medical insurance for all employees."
This simplistic approach might work -- IF human beings were chess pieces.
It might work -- IF human beings were powerless, passive, obedient pieces who always do exactly what the great and wise government chess masters order them to do.
But human beings are NOT chess pieces. We can reason and choose. Each of us controls his own actions. Wisely or unwisely.
When government writes laws or regulations that compel this or forbid that, each of us can choose how to respond. Each human being can obey or rebel or ignore.
And that is the fatal flaw in the "pass a law to make things better" remedy. That is the missing factor in "political solutions" equation.
But how do we change the minds of those who are receptive to the belief that passing new laws will make things better? How do we persuade those who believe that wise or good behavior should be required by law?
With questions that undermine and expose the "human beings are chess pieces" fallacy. With questions that get people to explore and examine what individuals will do AFTER the law is passed. With questions that reveal how people will respond.
Pretend that government compels employers to pay employees a higher minimum wage.
* How will each employer respond to the law?
Will he pay the higher minimum wage and raise prices to cover the cost? If he does, how will customers respond to the higher prices? Will they buy less? Will they shop elsewhere -- say "Big Box" mega stores?
Will he convert some "hourly" employees to "salaried" -- to keep labor costs down? Instead of getting $8 an hour X 40 hours a week for a pre-tax income of $320, will the "salaried" employees be paid $350 a week -- and work 55 hours a week?
Will he reduce work hours for his least productive employees to 15 or 20 or 30 work hours each week, instead of 40 -- so they are not entitled to the new, higher minimum wage?
Will he lay off his least skilled, least productive employees? Will he reduce employee assistance to customers -- and move toward self-serve?
Will he outsource some of the work -- to reduce overhead costs?
How might some employers avoid or evade or get around the law?
* How will each current employee respond to the law?
Will she increase the quality or quantity of her work?
Will she do "off the clock, off the books" work -- so the small business owner can afford to keep her employed?
Will she ask her boss to reduce her weekly work hours -- so he can afford to keep her working?
Will she be laid off -- and collect unemployment insurance? -- or pound the pavement looking for a new job?
* How will each unemployed job-hunter respond?
Will he spend 5 weeks unemployed and looking for a job - instead of 2 weeks - because fewer hourly wage jobs are available?
Will he be limited to part-time hourly wage jobs -- because they are exempt from the higher minimum wage? Will he be underemployed? Or will he look for a second part-time hourly wage job -- that is also exempt from the minimum wage?
* How will customers respond to the new situation? To higher prices? To fewer clerks?
* Is this better or worse than things are today? For the small business owners? For the hourly employees? For entry level job hunters? For customers?
"How will each person respond to this?"
"What will each person do about it?"
"What are the consequences of their response to the law?"
"Is this better or worse than things are today?"
Ask these questions of those tempted by "laws passed for our own good by great and wise government chess masters."
Ask them of your family, friends, and co-workers.
Ask them of yourself.
Human beings are NOT chess pieces.

3 comments:

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