In his recently released budget proposal, President Obama envisions a living, minimum wage with future increases based on the rate of inflation. Interesting. Will this also mean that where we see a negative consumer price index that wages will fall accordingly? Probably not.
By the way, Mr. Obama’s proposal appears on page 30 of the budget. I figure giving the page number should help given the budget is some 2,000 pages.
There is something union-esque about this proposal. It takes away a market-based evaluation of wages and bases the minimum wage on fairness, whatever fairness is supposed to mean. In business, wages paid are not based on fairness, but on the value the employee brings to the organization; a value based on production. When I managed a restaurant a few moons ago, I wanted the most productive people on my shifts. Efficiency falls if you can’t delegate certain tasks to an employee because they won’t be able to deliver and if you have to make up for their shortcomings by doing there job in addition to yours, your efficiency falls off as well.
Rather than focusing on a programmatic offering designed to keep the progressive electorate in the fold, President Obama should focus on creating an politico-economic environment that makes it easier for individuals to garner the capital they need to make themselves valuable and thus drive their economic values up.