Although I try to stay away from politics per se, certain social aspects often come close to, if not actually share a line with politics. I genuinely don’t know how many people are continuing to stay unemployed because of drawing extra pay through COVID-19 relief. There are no doubt some as there always are. What I do know is there are “Now Hiring” signs in many places and restaurants/hotels are having an especially hard time finding employees. A response is, “Then employers should pay more.” In some cases, I agree. I do not agree with the concept of a minimum wage of $15/hr, but that is not exactly the topic here.

There are conflicting studies that show a raise in the minimum wage causes jobs to be cut to accommodate the increase in labor costs and studies that show no job loss. I suspect either may be correct depending on the type of company and location. The reality is  minimum wage and low-paying jobs are intended to be entry level, or perhaps second-job opportunities, or augmentation jobs for someone who wants a degree of income with no real responsibility. A “fairness issue” arises when those are the dominant type of jobs available in a location so there is little chance of “getting ahead”. That also applies when the cost of living is such that even making more money may not help lift one from having to live paycheck-to-paycheck with no buffer in the case of an emergency.

What I do know is this. Companies who want to hire and retain employees and can do so increase pay and benefits in order to have a stable qualified workforce. Small to mid-size companies may simply not have the capital to do so. In the small company I worked for after I retired from the Army, the owner was great about getting around to talk to all the employees. (That changed as the company grew and was one of the reasons he and his co-owner wife eventually sold off most of what became a “group”.) Anyway, during one session, the subject of increasing compensation was raised. The boss nodded and said something like, “Everyone always wants higher salaries. We understand that. We have to stay competitive. If we charge too high a price for our services, we won’t get the contracts and can’t stay in business or grow.” The belief that any company that refuses to pay employees a bigger salary is motivated only by greed for the bosses is generally not correct.