Raising minimum wage won't hurt

The war on wage earners, like any other war, requires propaganda. Example: the Feb. 27 Inter Lake editorial, “Don’t rush to raise minimum wage.” Propaganda works when it doesn’t mention the facts and it is also safe to assume the readers are ignorant of them. The editorial implies that raising the minimum wage will kill jobs. Example: In 1996 the minimum wage was raised. In the following four years more jobs were created than in any other four year period.

The economy isn’t bolstered by the number of low-paying jobs that are created. It is bolstered by increasing the amount of money that middle- and lower-income people have to spend. The real job creators are consumers who have enough money to buy things. Businesses hire more workers only when they have more customers. If it were otherwise, we should lower the minimum wage and put a 20-hour per week limit on hours worked. Jobs would be created all over the place, and the economy would tank.

I quote from the editorial: “While wage increase advocates like to refer to big companies like Walmart and McDonalds as employers that can absorb higher labor costs, there are thousands of small businesses that may not be so capable.” (Notice the sleazy may in there.) What nonsense, but  vicious nonsense. The assumption is that your small business is the only one raising wages. But the minimum wage is raised for customers as well as employees. And more money in the hands of spenders is more for small businesses and everyone else — even the Wall Street aggressors in the war and their agents.

A higher wage means more and more able applicants, more efficiency — employees who are reliable and stay longer — and, consequently, labor costs are lower. The Gap raised its minimum wage. Last year they topped other clothing retailers in sales and profits. Costco pays wages more than half again as high as Walmart and provides top benefits in the industry. Costco’s labor costs are lower than Walmart’s. Profits increase with the loyalty of employees. The moral: if you treat your employees right, they will treat your customers right, and that means treating you right. It’s simple: mutual good will and respect underlie every successful economy.

O'Neil is a resident of Kalispell