LETTER TO THE EDITOR
Dollar down, inflation up
We may think California politicians are stupid to raise the minimum wage to $20 per hour. No, they are very smart. They know how to devalue the dollar. They think the more the dollar is devalued, the easier it is to raise your taxes and control you. Every dollar in your savings has just dropped 5% value in just one day, starting April 1st.
The start of minimum wage was set to $1.00 per hour in 1963. This was the start of major inflation.
In 1963 non government workers earned a little more than most state and county workers. Now a non skilled state worker makes much more starting out then the non civil service worker starting out.
My dad’s retirement from Areo Jet was about 18%, so at that time you had to invest and save for the future, but now many state workers can retire at 100 to 110% of their current wage. Soon there won’t be enough money (or credit) to continue to pay full wages to people not working. This applies to Cal-trans, firemen, corrections, sanitation, capital workers, etc.
Now, back to minimum wage, from $1.00 per hour to $20.00 per hour. Skilled workers such as plumbers, electricians, carpenters, or mechanics will soon be increasing too. Before you know it, these trades will be charging $500.00. per hour, a least. The value of the dollar goes down, down, down, and inflation will keep going up, up, up.
The people that it really hurts are the older people on fixed income. They see any savings they have become worthless. Gasoline is now $500 per gallon, but wait, gas stations have to now pay higher wages to employees. Soon gas stations will have to charge more, Maybe $5.25? Then everything that’s brought by trucks, that’s almost everything will go up again.
Does this insanity ever stop?
Bud Mailhot Hallwood
Editor’s note: The California state minimum wage is $16.00/hour for all employers. As of April 1, all fast food restaurant employees who are covered by a new California law must be paid at least $20.00 per hour. The federal minimum wage for covered nonexempt employees is $7.25 per hour. On the federal level, in 2007 amendments increased the minimum wage to $5.85 per hour effective July 24, 2007; $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009.