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Saturday, December 07, 2013

The Minimum Wage

Many prominent conservatives have spoken of Schumpeter's notion of the "Creative Destruction" of Capitalism, which is essentially an economic Darwinism that says the out-of-date and the inefficient companies die away, and thus make room for the new capitalist companies; creating and destroying.

Thus, the concept of "destruction" and any accompanying suffering get a pretty good suit of clothes to put on, doffing the old jail cell orange that it had to wear when "destruction" was bad. Now it can be good.

Fine. I won;t argue the point.

However, when numerous people cry and moan about raising the minimum wage, someone should just say,

"Creative destruction, lads; creative destruction. If your fast food eatery falls along the Darwinian wayside, its place will be taken by another restaurant that can sling hash and pay better and make a go of it.
If they have razor thin margins, there are more bumps in the road than just the minimum wage.
They can keep wages down, and go under if Christmas sales are down 2% from last year.
Again, survival of the fittest, new broom sweeps clean, and gets more profit for it."

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