Minimum Wage Editorial

This is an editorial I wrote about a year ago for Ken Hare's class:


A double-edged sword determines the fate of our economy.
The sword has a name.
Capitalism.
The federal government does not need to increase the minimum wage. Leave the decision to increase the wage to the states. The federal government cannot control every aspect of state government. They cannot control the rates of sales tax, state income tax, and property tax that states pass on to their citizens. If one wants to go deeper, tax goes further into states via county and city.
The federal minimum wage is $5.15. Yet, not every state has a minimum wage of $5.15. In a state-by-state breakdown of minimum wage figures by dol.gov, 20 states have a different minimum wage than the federal wage. Some states, such as New York, recently had an increase take affect. In New Jersey, an increase took affect as of Oct. 1, 2006. Currently, Alabama does not have a minimum wage law.
Democrats in Congress are trying to push an increase of the current federal minimum wage to $7.25. Even at $7.25 that still may not be enough to pull a family out or completely out of poverty.
A recent Birmingham News article found that “the national average poverty threshold for a family of four in 2005 was $19,971, and $9, 973 for individuals.”
Living off $5.15 an hour varies from state to state. Cost of living is the reason. Someone making $5.15 should expect his or her dollar value to shrink if they were to live in some northeastern states and such states as California.
The tax base is a factor.
Alabama has one of the lowest tax bases in the country.
According to a report of the U.S. Census, in 2005 Alabama ranked 44th in total state tax per capita with $1,711.27. In the highest state tax per capita is in Vermont with $3,600.16. The lowest state tax per capita is in South Dakota with $ 1,430.46
Currently, Vermont has a minimum wage of $7.25, while currently in South Dakota the minimum wage is $5.15. Again, the minimum wage figures are courtesy of dol.gov.
According to lucybaxley.com, Lucy Baxley, recently defeated Democratic candidate for governor in Alabama, wanted to push legislation to increase Alabama’s minimum wage from the current rate of $5.15 to $6.15. As of now, no legislation for a minimum wage hike has been presented.
Alabama should not start with an increase in minimum wage, but rather adjusting their state taxes. Granted, Alabama has a low tax base, but the state also has a regressive 4 percent state sales tax. The sales tax includes necessities such as groceries and medication. In some areas, with the combination of city and county sales tax, sales tax has reached as high as 10 percent. Currently, the sales tax rate in the city of Montgomery is 10 percent. Obviously, making $5.15, while buying groceries at a 10 percent tax rate will result in a rather empty shopping cart and an empty wallet.
From one extreme to the other, do we want to raise minimum wage to $10.00? Do we want minimum wage to remain $5.15 for another eight years?
The fact of the matter is poor people will always exist in the United States and Alabama. To a degree the phrase “survival of the fittest” comes to mind.
Most love the idea of a day where poverty is extinct. We have to be realistic. No matter how well the economy has flourished, boomed, and thrived in the past, poverty still remained.
The federal government should not try to force a higher minimum wage. Everything that is bought across the country is not bought at the same price. Plus, add to the fact that everything bought is not taxed at the same rate.
Personal responsibility must be a factor somewhere in all of this. No government can eliminate poverty on its own. For the person or persons must fight their way out of the dark. People should not solely rely on government to bail them out of every situation. The more society relies on government, the more society is setting itself up for a downfall, i.e. Hurricane Katrina. If illegal immigrants can come across the border with nothing more than the clothes on their back, and take any job to support him or her and their family, the future battles with poverty does not bode well for the U. S. Nobody in this country is forced to live in poverty. No doubt, obstacles are imminent, but it also boils down to the motivation and desire of the person.