Regardless of the banal political rhetoric Republicans and Democrats put forth, two things are always true about a minimum wage hike: Each hike occurs because inflation has further eroded the value of money and each hike is disconnected from the value of an hour’s work.
Balancing the minimum value of an hour’s work with a guaranteed minimum standard of living is a basic act of balancing economics and compassion. However, the minimum wage was intended to ensure an income sufficient for one person to feed, clothe and board one person. The minimum wage passes on to consumers such costs. Overstating the intent of the minimum wage (to include the costs of families) passes the costs of poor planning onto consumers.
A better solution to increasing the minimum wage is to lower the minimum wage to $5 an hour, do away with the earned income tax credit, and match each dollar earned with $1 of welfare. The net hourly wage would be capped at $10 per hour up to 60 working hours per week.
This $1 match would be deducted from the employing company’s income taxes. In this manner an individual would be working, the cost of a “de facto” minimum wage bump would bypass the marketplace, moneys currently paid as “earned income tax credits” would be distributed throughout the year, and corporate taxes would go more directly into the pockets of low-wage earners.