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The Only Numbers to Count in California Minimum Wage Increase Debate!

It seems every ultra-oppressive and greedy manager and successful small business owner of late is wanting to complain about the much needed Californian minimum wage hourly standard rise from $10.00 to $15.00, is a job killer, an economic nightmare, and or “the end of business as we know it.” Well, all I can say is “Thank God for that!” As the Governor of California Jerry Brown said “Economically, minimum wages may not make sense. But morally, socially, and politically they make every sense,” the Governor tipping his hat to the near slave labor wages the average Californian can expect to earn at the current rate.

Imagine the frustration and object and blatant unfairness present whereby anyone who works their dutiful 40 hour work week, day in and day out, in the wealthiest nation on the planet, may not expect to earn enough money from the fruits of their labor to support themselves and survive. Pardon my “French,” but where I am from we call that bulls#@t! If an individual has the wear-with-all to go out, find a job, get that job, keep that job by getting up and going to work every day, then that person has the right to expect that that one full time job is enough to provide for them enough money to pay for the food, shelter, and clothing they require to survive. I won’t even get into that individuals right to expect to have some disposable income as well!

It seems a lot of numbers are being bantered about, mostly being generated by those big businesses who’s multi-million annual salaried CEO’s and corporate officer cores have actually accelerated the wealth disparities in this nation to near breakneck speeds! However, at the end of the day, how much money are we really talking here? Well, it’s really easy to figure out, and it is the ONLY number worth a damned in this debate, as well as being the ONLY number from which any true cost basis may be derived from. Therefore, ladies and gentlemen, without further due I give you the real costs:

Current wage rate Per a month Annually

$10.00 x 40= $400.00 $400.00 x 4= $1,600.00 $1,600 x 12= $19,200

Purposed wage rate

$15.00 x 40=$600.00 $600.00 x 4=$2,400.00 $2,400 x 12=$28,800


Difference in pay

$5.00 x 40= $200.00 4 40hr.wks difference $800.00 Yearly $9,600.00

Therefore, a small business owner making say $200,000 a year salary would have to possibly make an adjustment of $48,000 to their own salary if they employ five employees. Therefore, if the business couldn’t cover this new cost, then the salary of the business owner would have to drop to $152,000. As opponents will immediately jump up in arms to factual numbers like these, I quickly point out that our small business owner in this example hasn’t yet even changed tax brackets! Meanwhile, the additional $9,600 annual to the minimum wage employees (If both receiving the new wage rate.), just allowed a young married couple of both employed to actually and seriously contemplate affording one child.

So then, which is most fair? Ultimately at its core that is what this debate is literally about, right? What do we as a society believe to be fair, and how should the distribution of wealth received for the expenditure of one’s own labor be best divided in this country. Well, before you answer let me assure you that the continued near third world wages being paid American full time employees with an expectancy that the state will pick up the difference need to survive, is the quickest way to assure us all that we no longer have much of a country for that much longer! Moreover, from a macro-economic perspective it makes more sense to ensure that employers pay their consumer employees enough money to afford the very goods and services that the employer businesses seek to offer the general public. I understand many modern economists forget the mandatory cyclical nature of real business and the undeniable benefits found in ensuring that American consumers get paid enough money to spend at American businesses, but I assure you that no matter how low your production costs get if your market dries up due to non-existing consumers capable of purchasing your goods or services your business will most definitely fail!

As this issue comes before Californian voters, workers, and business owners, it is important not to get fooled by the “numbers” and statistics. Remember the only numbers you need, I have given you in this article, and with those numbers you can calculate the true costs yourself. Hopefully, when this issue does come before voters or is ever brought up in your presence you’ll remember not to allow purely economic debating points to dominate your discussions, and remember to ask yourself “What is actually and really fair in this debate?”

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