UPDATED: Puncturing The Myth That Raising Minimum Wages Will Kill Jobs

The question of minimum wage has been very much a topic of discussion in alternative media of late, and I have written a few posts about the struggle. I am leading off today's consideration of the issue with a well-considered letter from a Star reader, followed by a Real News video that explores the Australian experience with a much higher minimum wage which, despite the right-wing hysteria equating anything that raises the costs of doing business with the killing of jobs, is doing quite nicely, thank you.

Re: Hiking the minimum wage, Letter, Aug. 9

In his letter, Doug Stewart seems to be forgetting one very important thing. The economy depends on people spending money. If someone is paid so little they can’t afford the basics, they not only will not have much to contribute to the economy and taxes, they will also become a burden on the taxpayer. Do those in the Timmy’s drive-through, sitting in their big SUVs, really need the few pennies they save by being served by those earning poverty wages? Why is that person behind the counter also not entitled to be able to buy things? You might also take a look at Walmart. It’s a very large and successful company. Its owners are among the richest people in the U.S. Yet, their employees often have to rely on the state for things like adequate food and health care. In Wisconsin, a Walmart employee is estimated to cost the taxpayer some $5,000 per year in state benefits. California is working on a law to fine Walmart every time an employee has to rely on medicaid. This is that you get when you don’t pay people enough to support themselves. The taxpayer winds up subsidizing the employer. Is that really what you want?

James Knott, Mississauga

By examining the experience of Australia and some European countries, this video offers a useful counterbalance to the propaganda that permeates the mainstream media about minimum wages:



UPDATE: Thom Hartman adds additional facts that show how wrong companies like Walmart are in bleeding their workers while at the same time being subsidized by the taxpayer.