John Kerry’s proposal to boost minimum wage

By WND Staff

Editor’s note: Business Reform Magazine is your exclusive source for real biblical answers to real business problems.
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Under the guise of helping the “working men and woman of America,” John Kerry has proposed increasing the minimum wage to $7.00 an hour. Why stop at $7.00 per hour? Who can raise a family of $7 per hour or $14,500 a year, anyway? If Kerry really cared, he would boost the minimum age to $25 per hour or $52,000 a year. Then every working family could really live rather than just survive. (He should also include mandatory four weeks of vacation, medical benefits, life insurance, and other necessary benefits.)

Granted, millions of jobs would be priced out of existence and unemployment rolls would swell, but at least we would then have a “fair” wage for every American.

The economic reality of increasing the minimum wage is to eliminate jobs, hitting hardest the young workers and minorities who are most likely to earn the minimum wage.

Of those who earn the minimum wage:

? Over 30% are young people living at home and do not provide support for a family.

? Over 60% are employed by the hospitality industry and earn tips in addition to the minimum wage.

Do these minimum wage earners absolutely need an increase? They would not complain, of course, but minimum wage earners would be hardest hit by a wage increase. When employers cannot afford to pay more than $7/hour, who loses the most when the job position is closed?

Already the unemployment rate of Hispanic and Black Americans in 25%, which means one in four is unable to find an entry-level job! Pushing up the minimum wage would be a powerful blow to this group … not a boost as Kerry claims!

Most minimum wage earners are working to obtain the skills necessary for a successful career. The wage is supposed to be incentive to learn, grow, and increase. That way they can rise above the minimum wage and get the good-paying job that they both want and need. The apostle Paul wrote of a young worker, “you know of his proven worth …” (Philippians 2:22 NASB). Workers who prove themselves are paid more. That is the way it’s supposed to work.

The free market will force employers to continue to raise wages so they can keep good workers. It is the way the free market works, but bumping up the minimum wage as Kerry proposes would do far more damage than good to those who need it the most.


Steve Marr is the former CEO of the fourth largest import-export firm in the U.S., a company which facilitated international trade for many of the largest companies in America. Currently, Steve consults with with businesses and ministries utilizing ancient Biblical principles for success in today’s marketplace. Click here to contact Steve, or visit his website at www.businessproverbs.com.