By Gene Balfour
The proposed Minimum Wage Law increases in various US jurisdictions is an act of aggression against businesses and willing workers. It is also an act of treason by elected officials against the very citizens who entrusted them to protect their well-being.
Here is the analysis to prove my claims.
Individual property rights includes 4 components which we all possess: our BODY, MIND, EFFORTS and the ASSETS we acquire through the application of the first three.
Employment is a form of trade – an economic exchange between two willing parties.
The terms of employment are based on each employee’s (party #1) willingness to apply his or her body (skills), mind (knowledge), and effort (productivity) to meet the goals set by the employer to fulfill the expectations defined by the job description and responsibilities thereof. The employer (party #2) agrees to pay each employee from assets that have been earned by the business owners which constitutes their legal property. As part of this arrangement, the employer also makes available other assets to the workers including a work place, equipment, co-workers/teammates/management, intellectual property and, of course, paying customers who make the entire enterprise viable.
Hiring a new worker is no different than any other business investment, regardless of its nature – equipment, energy, services or labour. The business expects a return on investment (ROI) or else they will not invest. Some jobs provide a lower ROI than others due to their low skill/knowledge requirements and the wages for these jobs reflect this reality. Overqualified workers will not apply for these jobs knowing that other jobs can leverage their skills and knowledge at a higher pay level. Under-qualified workers will need more training and time to become productive at the ROI levels expected by the employer. All employers seek the best candidates for each job and usually choose the person who is not overqualified and too expensive or so under-qualified as to require too much time and effort to meet expected performance goals.
When governments enact laws like the Minimum Wage Level, the business case for hiring new workers is taken out of the hands of the employer and potential workers. This is a violation of the property rights of both and is actually harmful to both parties. Like medical doctors who swear an oath to “do no harm” to their patients, is it too much to ask our political and government leaders to abide by the same oath?
Gene Balfour
Professional recruiter for 35 years
Fenelon Falls, ON