VOTE NO ON SQ#832!

 Weekly Opinion Editorial

VOTE NO SQ#832!

by Steve Fair

 

Only one state question qualified for the June 16th primary ballot- State Question #832 (SQ#832), which if approved would immediately increase the minimum wage in Oklahoma to $9.00 an hour.  It would mandate automatic increases for the next three years to a rate of $15 per hour in 2029.  There has not been an increase in the federal minimum wage since 2009.  Three observations on SQ#832:

First, labor costs are ultimately paid by consumers.  Companies don't pay wages- consumers do.  Higher labor costs result in price increases on goods and services.  That would result in inflation.  Voters should recognize if SQ#832 became law, they would be paying the higher wages, not employers. 

Increasing the minimum wage would likely lead to a 'ripple effect,' where all wages increase- not just those earning the minimum wage.  Employers can't absorb or eat labor cost increases- they have to pass it on to remain viable. 

Second, SQ#832 would hurt those it claims it would help.  Employers operate on a labor cost factor.  If the minimum wage is increased, employers will have to lower the number of employees to remain profitable.  A business has two fundamental choices: (1) raise their prices or (2) adjust their staffing numbers down to avoid price increases.  Those getting paid the minimum wage are overwhelmingly entry level and have little training or experience.  SQ#832 would reduce the number of people getting that on the job experience.

Third, every employee works for themself.  No one in America is forced to work for someone else- slavery is illegal in the U.S.  If an employee isn't satisfied with what they are getting paid, they should find another job.  They should sell their services to the highest bidder.  People with skills or experience can leverage their productivity to get higher wages.  If a short sighted, skin flint employer is short changing employees, they will/should pay the price.  Their most marketable/employable people will leave.  Talented productive people will find gainful employment.   

Advocates for SQ#832 claim raising the minimum wage will help combat the affordability crisis.  They point out the price of food, housing, child care, health care, and utilities are up in the United States.  Their solution to fighting this issue is to force businesses to increase wages.  They fail to see raising the minimum wage would result in higher prices and inflation.  It would disproportionately hurt those making minimum wage.

Raise the Wage, the group pushing for SQ#832's passage have some interesting backers.  The Cherokee Nation of Oklahoma has contributed $25,000 to the yes campaign.  Some liberal out of state groups will fund the group's campaign, so expect to see lots of misinformation about how increasing the minimum wage is good for Oklahoma. Raise the Wage will have money to get their message out.  Voters should recognize the consequences of approving the socialist policies of SQ#832. 

Good productive employees don't require a mandated wage- bad employees don't deserve one.  Vote No on SQ#832!