News From Terre Haute, Indiana


February 4, 2014

Readers’ Forum: Feb. 5, 2014

TERRE HAUTE — A case against minimum wage

“For every action, there is an equal and opposite reaction.”

As for the ACA, we can see how this has impacted the working hours and income of many workers in the country. I believe it will get worse as time moves on.

Political parties come up with ideas they deem helpful for all of us and votes for them to stay in power a few more years. They do not see farther down the road than the next election. The ACA is just one of those things that may turn the tide in Congress this year. Many are fearing their jobs, and rightfully so.

Now here in our state, the minimum wage is up for a vote. In my humble opinion it should not be raised. Based on the recent ACA and its bad effects, no one has looked at how it will affect everybody in years to come.

Those struggling to make ends meet hope for relief, but in the long run may be hurt more than others who are just getting by. Here are my reasons for being against it.

As fast-food industries and others adjust their prices up to keep the profits level, we all will be paying more. Companies may even try to hire less people and cut back hours of those now working to achieve these levels. The small raise received will quickly evaporate and their buying power will be less than it is now.

As the years go by and this cycle continues, the retired people on fixed income may have to go on welfare or get a part-time job to pay for utilities, food and health care costs.

If Indiana does pass this, will it affect any companies looking to come to our state? Many of them may have a large quantity of entry-level jobs to fill at the best wage price they can get.

On the National level, we have a wage per hour that is more than other countries’ citizens make in one month. How can they buy our products? Many of the jobs in the U.S. are now done in Mexico, Japan and China. Why? The wages are lower. The Congress has raised wages up until they have priced the American workers out of the job market. Look at all the factories that have left Indiana to move out of the country.

While it may or not be on a wage-related subject, it does show how Congress has screwed it up in the past. Intel, a computer chip giant, moved to Ireland because the corporate tax rate was 12 percent. Here it is 35 percent ( I think they said). They have $40 billion over there they don’t want to pay taxes on over here. This was on “60 Minutes.”

The CEO stated that Coca-Cola could move their “secret formula” from Atlanta to Ireland to avoid the tax. Carnival Cruise Lines, the biggest in the world, uses an offshore address and corporate operations in Miami for tax relief. I now see states compounding the problems the federal government created to make matters worse for us all. I do not know the history of corporate taxation, but suspect it was to increase revenue to pay for something else. Have we priced ourselves out of jobs to the point we cannot recover? I hope not.

— David Marter

Terre Haute

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