At this time there are a lot of people wrangling over the issue regarding the minimum wage. People are debating whether it should be raised, allowed to stay the same or eliminated, and … the effects that these options would have on our economy.
At this time, I do believe that the cost of living has definitely outgrown the wage scale in America for Blue collar and many white collar workers. Common sense and life experience shows me that the average US worker can expect to make anywhere between 18 to 30 k per year, which isn’t much different than it was 20 years ago; many things have changed during that time though with regard to inflation and Cost of living.
To keep from making this more drawn out than it needs to be , Ive distilled my equation to this reasoning.
Everything moves by the power of fuel, from cars and trucks, to commerce, to production, to animals, to wind. Everything that moves or changes is caused by something and that cause can usually be found beginning with something that Fueled it. So since all change can be tied to movement and most if not all non gravity induced movement is tied to something that fueled it. Thusly work can be tied to fuel.
In simpler terms…our Dollar is tied to the value of fuel. (See US Petro Dollar)
So…. with that said , why shouldn’t compensation be tied to the value of fuel?
In the 90’s gas was 1 dollar per gallon, minimum wage was roughly 4 dollars.
Today gasoline costs, on average, 3 dollars a gallon; going by the same reasoning as cited above the minimum wage should be roughly 12 dollars an hour. That is a minimum wage that makes sense. If gas hits 5 dollars a gallon over a four year average, we will need a 20 dollar minimum wage because Food costs will go up as well as utility costs etc. It would take 75 dollars to fill up an average tank, at 20 per hour that would still be 3.5 hours of work which is a fair cost to make it back and forth to work.
Now I know people will say, but..but what about the small businesses, the mom and pop stores.
There’s a solution to that as well… selective application.
Who Should be made to pay the minimum wage is the question here and here is the answer.
Minimum wage standards should be applied to all businesses that have a head count or payroll over 500 employees… or better yet, if they have to provide healthcare to their employees due to the ACA, they should abide by the national minimum wage but Ill be realistic and say 500 is the magic number.
The Minimum wage should be 4 times the average for a gallon of gas over a 4 year span, adjusted regionally for cost of living with regard to where the employees home is ( if within the US) and scaled only upward if living in high price regions overseas.
Businesses that violate the law should be taxed 3 times the amount that the underpaid employee has been shorted. The Tax money would then go to re-paying that employee, with the rest going to national disaster relief fund.
Just brainstorming, lets see if I can still do this.
Stay Up and Prosper.