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Be Careful What You Ask For In South Dakota Minimum Wage Hike

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Making more money is supposed to mean narrowing the gap between the poor and the rich.  This is one tenets of those who favor raising the minimum wage for the poorest wage earners.

Come November 2014, voters in South Dakota will choose to give the $7.25 minimum rate a boost to $8.50 per hour or keep the rate as it is.  Heavily in support is the South Dakota Democratic Party who predicts that increasing the wage will in turn put more money in people’s pockets.

Who wouldn’t want more money?  That’s a great idea.

Does anyone think about the value of the wages offered in accordance of the task performed?  There are some jobs where the skills involved to perform the duties are worthy of the minimum.  Conversely, there are some who work for $7.25 per hour, but are grossly underpaid.

If the voters approve and the minimum wage goes up in South Dakota, the lowest will get a boost in pay.  The question then becomes:  Do employers expect more productivity?  Conceivably, some business owners will adjust their plan to have fewer workers do more things in order to keep the same profit margin.  It may not happen in all cases, but business owners who are providing these jobs will find the best way to profitably provide their product or service.

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