Many people today are not conformed to the minimum wages we live with currently. Of course, this has been going on for years. The question is; why wouldn’t someone voluntarily offer you a job at twice today’s minimum wage? Even if this happened it would be very rare.
First of all we would have to take not of the wage laws. This means that if minimum wages were above what a worker is worth, then he would not find a legal job.
Nobody likes to pay more and obtaining less. Even so, businesses cannot automatically pass on the added costs to customers. What if the employee isn’t worth as much, yet the employer hires him with an obligation to pay him more. The employee in return would not produce as much, and the employer would then have to raise prices due to the lack of productivity. Inevitably, the economy would go down making losses. Not only this, but the employer would not be able to hire more employees, because of the lack of money. Then, this will create more competition making it harder to find a job. This competition would then force wages even lower forcing the state to put the unemployed on relief (unemployment insurance). This insurance would then raise taxes or counterfeiting declining the economy.
Then comes the other problem, which is hiring someone at a minimum wage when the employee is worth more. This is only the result of unrighteousness.
The problem begins when we put the state in charge. Also, the problem goes back to the state when they have to raise taxes and/or counterfeit. The truth is that there shouldn’t be price floors (minimum wages) and price ceilings. An employee should be paid what he is worth. Many people think that lots of jobs mean high economy, but what if the jobs weren’t productive enough?
We shouldn’t base ourselves on how many jobs we have, but on how much production they give. High production means high economy, and this doesn’t necessarily mean that there are many jobs. If we begin to value our employee to the amount of production he or she gives, then we offer a just salary. That is why we pay that person in the first place. You don’t pay someone for having the job, but for the service he is giving you. He could have the job, and not do anything. Yet, you still pay him. This would leave out others, when they are worth more than the current employee.
If we begin to value employees based on the service and production they give, then we could possibly have some being paid twice the minimum wage. Not only this, but people would be encouraged to produce more, and the economy would increase.