The Minimum Wage

The Federal minimum wage is $7.25/hour and has not changed since 2009; however, many states have set their minimum wage higher than the Federal Government and many companies have paid of minimum wage of $10 or higher for several years.

When companies pay a higher minimum wage is is part of their Strategic Plans to do so and is almost always high than the Federal minimum wage; however, when companies are forced to change the minimum wage because the Federal government of states have increased their minimum wage levels, then it is not incorporated into their Strategic Plans.

Consequently, when that happens, businesses have a choice of FIVE decisions to make:

1. Do nothing
2. Increase prices
3. Layoff workers
4. Pay stockholders less of a dividend
5. Relocate to another state

Unfortunately, the only two choices that businesses ever make is:

• layoff workers
• increase prices

Both of those decisions hurt the local economy as well as the company making the decision because those workers who are not laid off are asked to do more for the same pay and starting looking for another job.

In the LONG RUN, employee turnover will hurt the business but in the short run, it does not, and it is business as usual.

The irony of our capitalistic system is that workers who demand higher wages are always on the short end of the stick, no matter what they do.

• Higher wages could send the company to another state
• Higher wages could cause localized inflation
• Higher wages could result in a decrease of economic impact
• High wages could cause the company to start manufacturing overseas

Two of the biggest reasons that our COST OF LIVING pre-COVID was low was because:

• we had low wages in the US
• manufacturing was done overseas

BUT...  all of this will soon be water over the dam because by 2027 humanoid robots will start replacing workers by the thousands...  and there will be no need to have a higher minimum wage nor will there be a demand on business to pay EMPLOYEE BENEFITS...

YOU HAVE ABOUT TWO YEARS TO PREPARE YOURSELF FOR THE NEXT REVOLUTION OF OUR COMMERCE...

We had the industrial revolution

We had the computer revolution

Next will be the AI revolution