Diane Pagano’s recent opinion piece on the minimum wage in the Record-Journal was clear, well-researched and factual. Esteemed economists such as Henry Hazlitt, Milton Friedman, and Peter Schiff also argue against minimum wage laws, and for many of the same reasons Diane used. Yet, Marty Cobern, in his rebuttal letter published in the Record Journal, accused Diane of engaging in “Voodoo Economics.” However, when minimum wage laws are in place, the effect on society is, to a large degree, not beneficial.
Here are two reasons:
1) Many would-be employees who are lacking in job skills could be priced out of the market. Why should an employer pay someone $15/hour if that applicant can only provide him with $5 worth of value? Without a mandated minimum wage, that same applicant could be employed and acquire skills on the job which would enable him to qualify for a better paying job.
2) One point too often ignored is the question of where the money comes from to pay these increased minimum wages. It may come from the employer, who now is out even more than the increase she sacrifices to pay her employee, because she now pays more in payroll taxes due to the wage hike – a net loss to the community. The money could also come from the salary of an employee who is let go because the employer can’t afford to pay the increased wages for all employees. Or it may come from the higher price of the goods sold at the store, which then affects the customers.
Milton Friedman famously declared, “The rise in the legal minimum wage rate is a monument to the power of superficial thinking.” Diane thinks things through. She'll make a great State Representative for the 103rd District!
Kevin Paul, Cheshire
Support diversity, not GOP
All minorities and every voter who embraces diversity must not vote for GOP candidates ... Stephanowski, Suzio and Santos. They embrace Lyin' Don and his agenda of hate.
NEVER FORGET Trump's treatment of Puerto Ricans after Maria. Never forget his belief that Mexicans are "rapists" and the inhumane treatment of children. Never forget his tirades against LGBTQ people and physically and mentally challenged citizens. NEVER FORGET his closeness to neo Nazis, and his bigotry. Never forget his referral to African nations as "s***hole countries." Never forget to vote Democratic on November 6th.
Not my President!
Paul E. Gradwell, Meriden