Weekly Opinion Editorial
by Steve Fair
A group called Raise the Wage Oklahoma (RWO) gathered enough signatures to get State Question #832 (SQ#832) on the June 16th primary election ballot. If SQ#832 were approved by voters, the measure would increase the minimum wage in Oklahoma to $9 immediately and to $15 by 2029. The current minimum wage in the Sooner state is the same as the federal rate- $7.25 hourly. Thirty U.S. states have raised the minimum wage above the federal rate the past three years.
The United States federal minimum wage, was established by the Fair Labor Standards Act (FLSA) in 1938, during the Great Depression, at two bits ($.25) an hour. The objective was to ensure workers got a fair wage that would stimulate economic recovery. FLSA also instituted a 44-hour work week and protected children from prematurely entering the workforce. The minimum wage has been increased 22 times since its inception- the last time in 2009.
Legislation is regularly proposed regarding raising the federal minimum wage- the latest was introduced in 2023. Three observations:
First, one size does not fit all. All employees are not the same. Some are more productive than others. When employers are mandated/required to pay all workers a minimum wage, it hurts their most productive workers. When 'slugs' have to paid the same as 'eager beavers,' it's not fair to hard workers, resulting in an unfair division of labor. Conscientious and dedicated workers have options and when not treated fairly by employers will leave. Cream rises to the top.
Second, everyone works for themselves. Even enter level employees drawing minimum wage are ultimately responsible for their own career development, skills acquisition, and income generation. Each worker is a solo entrepreneur of their career. Loyalty in today’s labor marketplace is virtually non-existent. The most productive workers have options and often go the highest bidder. Today's employers treat their employees as expendable, resulting in high turnover and poor morale. Employees should remember they are "solo entrepreneurs" of their own lives and allegiance is not valued as much as in the past.
Third, consumers, not businesses pay the higher rate. Businesses will pass the higher labor cost on in the form of price increases. A higher minimum wage is not absorbed by businesses, because businesses are not sponges. If they don't pass on their costs, then they go broke.
Studies show increases in the minimum wage hurt small business more than large business. Faced with the choice of reducing staff, increasing prices or accepting less profit, many small entities simply can't survive.
A minimum wage hurts those workers just entering the workplace. Most businesses track their labor costs as a percent of revenue. Labor costs can account for as much as 70% of total business costs according to the U.S. Bureau of Labor Statistics. Labor costs, like any other commodity, should be set by supply and demand. Creating an artificial, government mandated price floor goes against America's capitalist economic system.
Oklahoma voters should vote no on SQ#832. It will hurt the very ones it claims it would help.
SQ#832 would hurt the very ones it claims it would help!Click the headline to read this full article, SQ#832 would hurt the very ones it claims it would help!, at FAIR AND BIASED
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