If the corporate managers are unable to grow the company to accommodate at least the increased wages, perhaps they are the ones who should be let go. Don’t forget: That’s why they claim those outsized compensations.
I left these brief comments:
The November 14th letter [Minimum wage fallout] is correct that minimum wage laws kill jobs.
But such laws are not only bad economics. They are morally bad. Business owners have a right to pay themselves, their executives and managers, and every other of their employees as they determine by mutual agreement. If an employee is not happy with his pay, he has every right to seek employment elsewhere, or start his own business.
Employers and job-seekers have a moral right to voluntarily contract on terms of employment, including terms of compensation, without coercive interference. Their contract rights should be legally recognized and protected by government. The government has no right to interfere, and no one has the right to demand that it does.
Minimum wage laws are economically and morally wrong, and should be repealed and abolished.
I also find the letter writer's sentiment that "If the corporate managers are unable to grow the company to accommodate at least the increased wages, perhaps they are the ones who should be let go" very interesting. It reflects the view of all statists; that businessmen will somehow continue to crank out wealth, jobs, and profitability no matter what impediments legislators throw at them.
The "somehow" is the consequence of concrete-bound mentalities, or what Ayn Rand called the "anti-conceptual mentality". This is the second biggest source, behind morality, of the growth of the regulatory welfare state. This writer cannot conceive of economic reality or principles, and won't even think to consider the context within which business must operate or the distorted incentives that minimum wage and myriad other interfering laws create. Their mentality consists of: "So what if the runner's ankles are bound together with rope. If he can't run the race, perhaps he shouldn't have undertaken to join the race."
This is the way they view economics; that, despite the mainstay of economic vitality, businessmen, being bound and hogtied by ever-increasing regulations, the economy will somehow continue to crank out higher wages and more jobs. And then they wonder why the economic recovery is so sluggish.
Related Reading:
Minimum Wage Issue is Not "about what it’s like to live on $7.25 an hour"
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