Barb Kucera recently wrote an article, in which she points out that the higher minimum wage won’t eliminate working poor. I include an excerpt:
On July 24, the federal minimum wage rose from $5.15 to $5.85 an hour, with subsequent increases to $6.55 in 2008 and $7.25 in 2009. Minimum wage workers in Minnesota and 28 other states won’t see an immediate increase because their pay is already $1 more than the federal minimum, but they will enjoy increases in future years.
Even so, the minimum wage remains far below what it should be – and doesn’t do anything to address rising health insurance and other costs, advocates said Tuesday at a news conference at the state Capitol.
For the last 10 years, American workers earning the minimum wage made $10,712 annually – “nearly $6,000 below the poverty level for a family of three,” said John Noonan of Americans United for Change, the group that organized the celebratory news conference. Similar events were held in 35 states and Washington, D.C.
The minimum wage does little to combat poverty. People who earn the minimum wage still live in poverty, for one. More importantly, minimum wages and other government intrusions on the free-market end up causing more damage then they fix. A hefty minimum wage would hinder small businesses and raise unemployment, for example.
A minimum wage ignores the underlying problem. We need to change our society so that we do not need a minimum wage (or any form of government assistance). We need to eliminate the causes of insufficiently salaried employment.
First, we need to make sure every child receives quality education, and that no child gets denied any education simply because they come from poor families or live in poor neighborhoods. Beyond that, we need to make sure every student has access to stuffiness food, clothes, shelter, and healthcare throughout their education, because we cannot reasonably expect a student to learn properly if the student suffers from hunger, homelessness, or illnesses. Additionally, the education must include job training and job placement.
If we make sure every person has access to student loans that cover all the costs of the requirements mentioned above, then ever person can get a job (or start a business) that pays enough to cover the future living expenses as well as pay off their student loans. In this way, we can end poverty for free.
In addition to educating and sufficiently employing everyone, we need to eliminate socioeconomic corruption. Namely, we have to stop megacorporations from using government to steal the wealth and labor of the masses, and otherwise exercise their selfish wills with the coercive power of government. For example, we have to stop companies like Halliburton from stealing tax-payer dollars through government-contracts by manipulating government policy.