Raising the minimum wage will not help the economic prosperity of the U.
S.
and more importantly will continue to place a negative drain on employee productivity.
First, the original intent of the 1938 Law that set minimum wage at $.
25 was to be applicable mainly for those engaged in interstate commerce or in the production of goods for interstate commerce.
In today's economy, that would apply to manufacturing and those involved in interstate commerce.
A quick look at data from the U.
S.
Census Bureau for 2003 shows the hourly rate ranges from $12.
16 (Florida) to $21.
28 (Michigan).
All hourly rates were well above even the existing rate of $5.
15 and the proposed $7.
25 per hour.
Interstate truck drivers in May of 2005 according to the U.
S.
Bureau of Labor Statistics ranged from $14.
47 for cement drivers to $17.
56 for general freight trucking.
No problem here meeting the existing law of $5.
15.
Minimum wage was never constructed to be a living wage.
However, many in government and those who believe that the government should govern individual performance need to look at the other facts affecting individual performance.
A recent survey by Salary.
com of 10,000 people suggested that the average worker wastes 2 hours per day.
This waste translates into higher costs for all consumers.
As a performance consultant, I can verify that even those who employees who tell me that their plates are beyond full also tell me that they waste a minimum of 12 minutes per day.
This small waste of 12 minutes per day has a huge economic impact on any organization and ultimately our economy.
For example 12 minutes per day equals 1 hour per week or 52 hours per year.
Using an average salary of $10,712 not including employer benefits such as social security or unemployment tax (for minimum paid workers), this amounts to $267.
80.
Now multiply this by 1,000 workers results in a $2.
7 million dollar loss to the bottom line.
By raising the minimum wage another $2.
10 per hour increases this economic drain by almost 50% to $3.
8 million.
The response by private industry will be to raise the prices of your favorite fast food to other basic necessities such as food and clothing.
This survey confirms other surveys about wasted time within the U.
S.
Labor market.
And this is one reason why U.
S.
employers are going overseas to find workers who will not waste time.
Human nature is quite consistent and simple.
Our performance goes up when we can see the fruits of our labors (capitalism) and conversely our performance down when we see others not working, but benefiting from the fruits of our labors (socialism).
In our society, we have had the opportunity to have many individuals who have maintained a stronger belief system in themselves that catapulted them to economic and personal success.
Today we call those individuals entrepreneurs, small business owners, self-starters or risk takers.
Let's be honest and talk about the elephant in the room.
For many, the lack of economic success is a symptom of a far greater problem that we are facing - the choices of many not to do what they need to do to get to where they need to go.
Individualism is viewed as a negative thing.
Hence, Uncle Sam (that means you and me) will take care of you.
Through taxes especially federal, performance results can be redistributed to those who feel that they are entitled to something for nothing.
What is really frightening about this entitlement mentality is that is not only reduces our economic strength, but ultimately our sovereignty.