Minimum Wage – Swindling the Poor
Increasing the minimum wage is dangerous. It is but a brief injection of spending power into the economy. At best, raising the minimum wage improves the marginal wage earner’s lot for perhaps a month or so. The cost of goods and services quickly increases to absorb the newly created cash injection.
Raising the minimum wage, like the predictable annual COLA, simply fuels inflation. Within a few months inflationary tendencies triggered by increasing the minimum wage wipe out the temporary working class gain. Ironically, increasing the annual rate of inflation benefits the richer borrowing classes while punishing the lower class marginal wage earner. The people who should fear minimum wage increases the most are the minimum wage earners themselves and the fixed income retired.