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by Daniel Berger.
Original Post: Minimum Wage Idea
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Not long ago I saw a debate on the minimum wage issue, which heats up about every 4 years or so. The general argument from the left is that it's too low to be a living wage and from the right that raising it will cost jobs, raise prices, and that it was never meant to be a living wage.
A recent segment on "The News Hour with Jim Lehrer" has convinced me that they're both right. Intended or not, there are folks who depend on the minimum wage for their career earnings. For them, the minimum wage raise is a Good Thing. On the other hand, many businesses (mainly restaurants) primarily employ high school and/or college kids in summer or part time positions who are just looking for some spending cash, not a career. For these business owners the minimum wage raise is a Bad Thing.
The solution, it seems to me, is to create two classes of minimum wage workers. My first thought is to simply divide along age lines, i.e. set a lower minimum wage for kids in the 16-22 range, say 20% lower than the "full" minimum wage. Or, if age discrimination issues should be cause for concern, divide along part time and full time, or perhaps some sort of "time in service" clause, and some proviso to prevent potential abuses of the system (such as the once infamous UPS abuse of 39 hours a week).
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