The biggest problem with minimum wage…

The minimum wage battle is one of the most effective political marketing issues. And that's why there's no end in sight.

In fact, one of the arguments often made against minimum wage is the idea that whatever the current wage is, it is simply not a "living wage." As of 2021, the battle line has been drawn at $15 an hour. Of course, by the time current legislation is fully implemented in 2025, that $15 wage will likely no longer be adequate for a family wage earner. Right now, it's barely enough for a single person to live fully independently in most places.

"So why not make it $20, $30? Even $50 an hour?"

That question is usually intended to be provocative, but think about it. In reality, it's right on the mark.

Gallup currently reports that most people feel they need about $58k a year to support a family of 4. That's about $28 an hour. Of course, it could be 2 full time wage earners at $14 or the magic $15, but that means one parent cannot choose to be home with the kids.

Why not demand the $28 right now that would allow a family wage earner to support the tribe while allowing one parent the choice to stay home and nurture productive little members of society?

The fact is that no business in the U.S. today could survive a $28 minimum. The actual value of front line, low skill and entry level positions is far below $28 and some would argue far below even $15. Most people earning minimum wage are not trying to support a family or even fully support themselves. They are mostly students or second income producers trying to earn extra.

Still, as of 2021, it's difficult in most parts of the country to find an adequate supply of labor at $15 an hour. Recent postings by the evil corporate giant Walmart are now advertising $16 for entry level, part-time positions. Current extensions of unemployment benefits resulting from the COVID crisis makes the matter even worse as people weigh the actual value of returning to work against more money in their pocket staying home.

Politicians cleverly avoid setting the minimum wage above the market threshold. In fact, they're usually under. Business people are usually protesting not the actual effect of the proposed wage today, but the anticipated effect of that wage in the near future.

The point is that politicians cleverly and consistently market the minimum wage threshold, and I do intentionally use the work market, at something that is at or below the actual cost of labor. Whether intentional or not, this means the minimum wage is an inexhaustible source of marketing capital that can be used to purchase voter loyalty. Keeping the minimum constantly at or below market cost never solves the core problem, and always provides politicians with the slogan that they're "fighting hard for the Average American."

Does this problem have a solution? Yes, it does, but let's save that never-ending argument for another day. My point today is simply this…

Let's stop getting sucked into the vortex on this. Let's recognize minimum wage laws for what they truly are, an opportunity for the political class to win our sympathies.

And believe me, most of them would not trade their jobs for $28, $50 or even $100 an hour.