Minimum-wage workers should research better employers

Discussions about minimum-wage laws are emotional. Many people confuse minimum wage with head-of-household wage. Minimum-wage laws weren’t designed to provide a wage that families could live on.

Despite good intentions, the laws of economics always prevail. When government controls wages, the effect is seldom good. Even with the announcement that California will have a $15-an-hour minimum wage, employers have been given six years to implement the wage. This is plenty of time for them to raise prices to cover the cost. Gov. Jerry Brown gets to claim credit, but minimum-wage workers will see little extra spendable income.

When wages rise by regulation, employment drops, businesses close, prices go up, the U.S. is less competitive, inflation results and the same ratio of wages to cost of living finds its equilibrium. In the end, it affects us all.

Hourly workers would be better off if they did two things. One, research companies to find the ones that treat their employees the best. Two, ask their employers to consider providing profit sharing, stock options, matching 401(k) and fully paid health care. All of these provide a greater benefit than raising wages. Even small employers can provide some benefits. For the lowest-paid workers, it is more important to have a larger discretionary income than a higher gross wage.

This story was originally published April 6, 2016 at 8:32 PM with the headline "Minimum-wage workers should research better employers."