Why the Minimum Wage is Bad

The imposing of the minimum wage is bad for an economy, no matter the level set. It gets rid of competition and creates greater unemployment.  I will give an example of how this works- Guy 1 and Guy 2 both have janitorial businesses in the same city. They both hire five employees, but they hire their employees at different wages. Guy 1 hires all of his employees for $12 an hour. Guy 2 hires his employees for $7 an hour. Guy 1 pays his employees more because his business is a business that cleans higher end buildings and houses, and gets more money from a job. Guy 2 pays his employees less money because he cleans more middle class homes that don’t pay as much. In their state, a minimum wage is set that tells employers that they have to pay a minimum wage of $10. This forces Guy 2 to start dishing out an extra $15 an hour. He will have to up the cost of cleaning a middle end home to pay for this minimum wage. The customers have to pay higher  for a lower end service. They are going to look at two janitorial businesses and say that they might as well pay a little extra for Guy 1 to do their middle class home,  because, why not get higher end service for almost the same price as lower end service? This makes it so that Guy 2’s business starts losing money. Guy 1’s business gains more customers and money. Guy 2 slowly lays off employees until he doesn’t have employees. Guy 1 hires three of guy 2’s former employees to keep up with new business, and they get a higher wage than what former paid. Happy ending, right? It looks good from the outside, but it isn’t. Two people are now unemployed until they can find a new trade, and customers are now forced to pay more than what they originally paid. In this example, the two unemployed people could always work for themselves cleaning houses, but what about a place like Burger King? They will have to either pay more and lose customer satisfaction, or lay-off and and make their business smaller. This is why the government trying to control job climate is bad for jobs, and bad for the economy. With a high minimum wage, we have to pay more for food, utilities, and service. Minimum wage hurts small business and creates more unemployment. The government then prints more money to try and help. Then we have inflation, which hurts us even more. The reason that we impose minimum wage is so that people don’t get hurt by unfair treatment. But, are they being forced to work in that environment? No; if they don’t like where they are working, they can start working for the competing business. This forces the bad business to start being fair. Without the minimum wage, their is a system of checks and balances that naturally present themselves. With the minimum wage, their is more unemployment, more government handouts, and more inflation. The minimum wage will also encourage big businesses to not expand into a particular state. If the business is big enough, it will be able to expand in to that state, absorb the minimum wage, and still make a profit. But, why would they want to go into the state with the high minimum wage when they could go into a state with low minimum wage and make a bigger profit margin? The government is not here to impose upon us; it is here to protect us, and represent us. If the government would do its job of protecting, and not controlling business, we would have better business. About every single candidate I have heard talk, has said that they will create more jobs. Their job is to do their job and not interfere with our job. Our government is slowly evolving into a socialist machine. Big businesses are leaving the U.S., and our politicians are saying that they will drag them back. That sounds socialist to me. The reason that they are leaving is because of government interference. Right now, we are giving people handouts that put them on paid vacation, and the government isn’t paying for the vacation; we are. That’s another thing; the government budget is our budget, because we are the government.