EppsNet Archive: Minimum Wage

Minimum Wage Proposal: $0.00

10 May 2014 /
Fast food strike

You can’t make ends meet on 8 bucks an hour? I can see where that would be a problem. When did fast food jobs become jobs for family breadwinners? Fast-food jobs are for high-school kids.

You want to make $15 an hour? Simple: get a job that pays $15 an hour. What’s stopping you? Other than your lack of skills, education, motivation and accomplishments? If no employer is willing to pay you $15 an hour, then guess what? You’re not worth $15 an hour. You need to do something about that.

Why is $15 an hour the magic number? Why not $16? Or $17? Why not $50 an hour? At $50 an hour, everyone would make a nice 6-figure income and poverty would be a thing of the past, right?

If you raise the price of a product or service, the demand for the product or service goes down — at least a little bit. Is there a counterexample where raising the price of something makes the demand go up? I can’t think of one.

Let’s go a step further: If you set the price of a product or service at an artificially high level, e.g., double the market value that people are currently willing to pay, the demand for the product or service will fall off a cliff.

Example: Instead of setting a minimum price for labor, imagine setting a minimum price for cars: $30,000. What would happen? No effect on the market for cars that already cost $30,000+, but the market for Honda Civics, Toyota Corollas, etc. would dry up. No one wants to pay X dollars for something that’s worth a lot less than X dollars.

A lot of low-skill jobs have been or could be automated out of existence. Think about that the next time you pay a machine at a parking garage or tool booth, or use an ATM, or check out your own groceries at the supermarket.

I was in a sandwich shop the other day and there were no humans taking orders. Instead, there were several tablet-sized touch screens with card readers. Swipe your credit card and select your order.

Fast food restaurants can’t get rid of everyone overnight, but there’s nothing like doubling the cost of labor to get business owners looking at all possible labor-reduction options.

P.S. I didn’t cherry-pick that photo. It’s from a Salon article that’s actually supportive of a minimum wage increase.


A $15 Minimum Wage is Not Going to Help You

6 Dec 2013 /

Fast Food Workers Will Strike On Thursday In L.A. : LAist

Fast food workers staged a one-day strike for “living wages.” More specifically, they want the federal minimum wage to be raised from $7.25 an hour to $15.

Fast food

(Photo credit: H Dragon)

You want to make a living wage? I’ll tell you how to make a living wage. I’ve had a lot of jobs and this method has never failed me.

Here it is: Before accepting a job offer, you always ask yourself, “Does this job pay enough for me to live on?” And if the answer is no, then you don’t take that job.

If you want to earn $15 an hour, do what I do: get a job that pays $15 an hour. Who’s stopping you?

If no one’s willing to pay you $15 an hour, it’s because the skills, intelligence and motivation that you bring to the table don’t allow you to do anything that’s worth $15 an hour. You need to do something about that. You need to be able to deliver $15 of value to an employer. Figure that out.

Setting the minimum wage at $15 is not going to help you. If you set the price of something at more than it’s worth, people are not going to buy it.

Imagine this: My friend Paul Epps is a programmer. Let’s say we passed a Minimum Wage for Programmers law that says that programmers must be paid at least $200,000 a year. Is that good news for Epps?

No, it isn’t.

His boss calls all the programmers into a meeting and says, “Well, according to the new Minimum Wage for Programmers law, I can’t hire any of you for less than $200,000 per year. You know what that means?”

“We all get a big raise?” Epps suggests hopefully.

“No, it means you’re all fired. Get out of here.”

Or imagine this: We pass a Minimum Price for Restaurants law that says you can’t get a meal in restaurant unless you pay at least $15 for it. What will that do to sales of Quarter Pounders and Jumbo Jacks?

People will stop buying those things. Many restaurants serve meals for which customers are willing to pay $15, but a fast food burger isn’t worth $15, even with fries and a drink, so people will stop buying those things.