Increasing the minimum wage - huge mistake

Certainly those making minimum wage would certainly benefit and enjoy a raise from $7.25 to $10/hour. However over the next few years that change will reverberate to further push our country into financial disaster.

The fundamental factor that drives the long term economy is the import/export of products. If we export more than we import, in terms of dollars, our economy strengthens. If we import more than we export, in terms of dollars, our economy weakens. We have had a negative import/export balance in goods sold or bought every year since 1999 totaling nearly Nine Trillion Dollars. It like having huge leak of dollars which is draining value out of our economy. Yet we are living as if nothing has changed. My own house is a perfect example.

We have a ski boat, spa, two jet skis, two motorcycles, and three cars, along with an 1,800 sq ft. house - for just 4 people. We live quite comfortably. Check the standard of living in India, China, or any of the other countries that are making products and selling them to the U.S. You'll find they are lucky to have 2% of the standards we have. Anybody that handles money well will tell you that you must live within your means. Generally speaking that means don't spend more than you make. We are a nation in debt, both in individual citizens, and in the $17T federal debt. This can not continue.

Many people are angry that companies have been moving manufacturing operations overseas. The reason they do that is labor is cheaper in many places outside of the United States. Products made in other countries are equal, in come cases better, quality than those made in the United States. If the U.S. companies try to compete, paying U.S. salaries, they will eventually go out of business. For their own survival they must shift their manufacturing overseas.

Increasing the minimum wage exacerbates the imbalance between salaries in the U.S. vs many other countries. It will only result in even more companies either failing, or shifting operations overseas.

If we build unique products that can't be built overseas by competing companies or countries we can pay these high salaries. Few products meet this criteria. On average we are losing our competitive edge because other countries, like China, are graduating far more college students than we are.

The only way to save the United States from economic collapse is to go through a period of balancing our salaries with other countries. That means other countries will have increasing salaries, which is happening but the gap is quite large and the time required to close the gap is likely to be measured in many years. Our overall salary base is falling, but again not fast enough.

The lack of jobs in the United States, reflected in the unemployment figures is one factor in lowering the average salary. Companies also have been squeezed by the economic conditions and are struggling to fund retirement accounts and other costs so they are offering lower salaries. These are beneficial to the long term economic recovery of the country. This is a healthy natural process that will help close the salary gap between the United States and developing countries. Along with this is a lowering of the standard of living in the U.S. but that is the price we have to pay for living beyond out means.

Increasing the minimum wage is completely contrary to what we should be doing. If anything lowering the minimum wage would be a huge step to increased employment and the long term economic stability of our country.