When gas prices are high, wouldn it be logical to raise the minimum wage rate?
by Glenn Blaylock on September 1st, 2005 No offense intended, but this question shows a lack of understanding concerning basic economics. One of the problems that we encounter with many people is that they think of employers as bottomless pits of money. Therefore, they can afford to pay their employees whatever society thinks they should. In reality, it’s not the employer that pays the salaries, it is the consumers. People go into business to make money. (There is nothing wrong with this.) In order to make money, the businessperson must produce a product that people are willing to buy. Often, producing a product requires hiring people that will do the work of production. The salaries of these workers becomes part of the cost of production and, therefore, part of the price that must be charged for the product. If your raise the price you pay the workers, then the employer must do one of two things. He must either raise the price of his product or he must not hire as many workers. So, ra
