Minimum Wage Hurts People

In his State of the Union speech, President Obama suggested raising the minimum wage to $9 an hour. Although he has good intentions, doing this will hurt the U.S. economy and not genuinely benefit low-income workers.
One would expect that an increase in the minimum wage would benefit everyone, but there are many negative effects of such government interference in the free market.
Why stop at $9? If there are no adverse effects of raising the minimum wage from $7.25 to $9, then why not raise it to $15, $30 or $100? Of course this is absurd, so one could deduce that raising it at all would hurt the economy.
The only people who would benefit are the small percentage of Americans who earn just minimum wage. Meanwhile, there are many people who would be adversely affected by such an action.
Increasing the minimum wage raises business operating costs. If a company wants to keep the same profit margin, assuming that a business in today’s economy is earning a profit, it has two options: raise prices or cut costs.
Raising prices will usually hurt sales, so employers will opt more often to cut costs. This usually translates into cutting jobs. In this case, there’s a good chance that a minimum-wage worker would be laid off. Politicians, therefore, end up hurting the very people they are intending to help. And if prices of products are raised, then the cost of living goes up, which hurts everyone.
The jobs lost to the minimum wage have many effects. Some people may have difficulty finding a job. Many businesses may decide that outsourcing jobs overseas is cheaper than paying higher wages in the United States.
For many low-skill workers, low-wage, entry-level jobs are beneficial because they give them an opportunity to gain on-the-job experience. This gives them a chance to move up through the system.
Many jobs or employees may not be worth the minimum wage. Some positions may only be worth $6 an hour. One could argue that an unreliable employee may only be worth $5 an hour.
The minimum wage should be elminated to let free-market forces work. Critics argue that lack of a minimum wage would lead to employers taking advantage of workers and paying, for instance, a janitor only $1 an hour.
But this would not happen. Businesses would naturally be forced to pay a worker a wage for which he or she is willing to work. No janitor would work for $1; he would go to where he is offered more. And if an employer wants a good employee, he will pay him more in order to keep him from going to another job. How many adults actually earn minimum wage? About 5 percent of American hourly-wage workers, according to 2011 Bureau of Labor Statistics statistics. Most make more and some far more.
Justin Beiber did not make $56 million last year because of minimum-wage laws. He is paid so much because those he works for do not want him working for someone else. In our free market, he is getting paid what his goods and services are worth, not what the government mandates.