Mar 28
Wages Should Be Determined By a Free-Market…Not the Government
2007 at 5:21 pm | posted by Rep. Craig Frank 4 comments
Utah’s wage growth continues to increase at one of the highest rates in the Nation. In a D-News article this morning, Brice Wallace reports that although Utah is in 47th position in over-all per capita wage, our growth rate is 6.5% compared to last year’s National average of 5.2%.
Utah has maintained a low uneployment rate for nearly two years which has assisted in creating one of the Nation’s best economies. Mark Knold, Senior Economist at the Utah Department of Workforce Services, remarked that the “tight labor market translates into aggressive wage growth because employers need to be aggressive in bidding for workers.” (italics added)
A fascinating, well-written article by Mr. Wallace, well worth reading in its entirety. Click HERE for link.
Then, if you missed it, here’s a link to my previous blog on mandatory minimum wage. Click HERE.
4 Responses to “Wages Should Be Determined By a Free-Market…Not the Government”
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March 28th, 2007 at 10:15 pm
Rep Frank,
On paper, I agree with you. However, externalities of a market set minimum wage must be considered. Should the market minimum wage be less than what can sustain an individual or family, who will provide the food, shelter and medical of the working poor? Certainly some of that cost would be picked up by taxpayers (with programs like CHIP, food stamps, etc).
The truth of the matter is that this phenomenon already occurs in Utah. Thousands of Utahns work for unsustainable wages, such as $7 an hour. To cover the cap to meet their families needs, programs like CHIP, food stamps and medicaid are provided. So in reality, Utah’s taxpayers are already bearing the cost and burden of a lack of a decent minimum wage. And that’s unfair. It’s unfair to the taxpayer and it’s unfair to the worker.
I firmly believe that opportunities for education prevent people from being trapped in poverty. That’s why I am so concerned about Utah’s colleges and Universities that are quickly becoming financially inaccessible to Utah’s working and middle class families. If people become educated, we don’t have to worry about minimum wages, welfare and wealth distribution (all distasteful).
Feel free to respond. I won’t bite.
March 29th, 2007 at 7:12 am
Tom:
How many of these “thousands of Utahns [who] work for unsustainable wages, such as $7 an hour” are supporting families? How many of these are teenagers or young adults?
Many of those making $7 an hour are temporarily poor. They maybe be married college students, but they won’t be poor college students forever.
If you are worried about low wages, then you ought to consider restricting the supply of cheap labor from south of the border.
March 30th, 2007 at 10:11 pm
Monica,
I don’t know a number. With all due respect, I would invite you to Cache Valley where wages a permanantly depressed relative to SL and the Wasatch Front. There are, in Logan, many people who work for wages around $7/hour. I wish they were all college students, infact, that’s my point! If they were, they would eventually experience upward mobility. The problem is that the Legislatures policies keep making that upward mobility less accessible.
It’s not just Cache Valley either. South of the Payson-Dixon line you’ll see the same kind of problems. Delta. Richfield. Nephi. Even Cedar City. These are places where people work hard and struggle. I cite as evidence that these are not all college students and teenagers, as popular notion loves to often think- our expanding CHIP program. These are the children of Utah’s working poor. People who work 60 hours a week but can’t afford health insurance for their kids. These are the people who run out of money and end up going to loan sharks (payday lending) who operate nearly without bound in Utah. These are people in real trouble. I’m not asking for a hand out for these people, just a hand up. And if we’re not going to offer that, we need to acknowledge the price that taxpayers bear for programs such as CHIP and other welfare to cover the living costs of those making pittance wages.
Cheap labor will be utilized by American industry one way or another. Whether they come to us, or we go to them, the days of Americans making liveable wages on manual labor are over. Education is the long termsolution- education that is accessible. Yet every year, the portion of University funding that the State bears decreases and the students portion increases. USU nearly operates like a private school now. How tragic and shortsighted! We need the Legislature to reverse course and make USU and other schools accessible to anyone who is willing to work their way through school. Right now that’s not the case.
March 30th, 2007 at 10:14 pm
Rep Frank,
I would love to hear your thoughts on this.