I figured this topic would bring about discussion.  I have only browsed some of the comments briefly, and I think I have a good idea of where certain people stand and what they think.

 

First topic to address, "income inequality" and minimum wage.

 

In my opinion, in a free market, there should be NO minimum wage.  Take the instance of a small business that needs labor to do a certain task.  Suppose the task is simple enough that that someone with no prior experience could be trained to do the task in a small amount of time, say within 30 minutes.  That particular job should pay a low amount, plain and simple.  The company that hires the individual should not be forced to pay any more than the task is worth.  Say the owner of the company determines that the individual would be compensated at $10 per hour.  What kind of labor can the business owner expect?  Would the person hired for the position be reliable?  Dependable?  Do the task to the best of their ability and make the company money?  If the answer is "yes" then the employer has the option to give the person a raise and reward them.  If the answer is "no" then the employer has the option to let the person go and find somebody that is up to the task.

 

If the company goes through the "no" scenario  a number of times, then the owner would probably explore the option of raising the starting wage and scrutinize potential employees a bit more.  Again, we are talking about a position that requires little skill and/or little education.  It should be up to the company owner to determine how much the position is worth.

 

I see it daily in my line of work.  Our company hires people with little education and/or skills and trains them to do certain tasks.  I just watched one particular female that did the task and more so well that she got a promotion.  I will not discuss actual compensation figures, but she got a significant increase in her hourly rate, plus she has the opportunity to work over-time if she wants, and gladly accepts it.  This particular girl is going to go places with that kind of work ethic.

 

Contrast that with the people that we see on TV that state that they have been "working at X fast food restaurant for 10 years without a raise".  I've worked in the fast food industry, and if you don't get some kind of raise within 3-6 months, then the problem is you.

 

The bottom line is, a company should NEVER be forced to pay a wage higher than the value of the position.  The value of the position should be determined by the owner of the business, not the government.  That's why they call it an "entry level" position.  It's to get your foot in the door, or the "first rung on the ladder" to move up within the company.

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