Full Employment and Wealth

      The average worker in a country with no minimum wage, according to common assumption, should have lower wages because the "floor" of the national pay scale is non-existent.  These workers would then be ruthlessly exploited and oppressed by the rich people and evil companies that would prey on them and exploit them.  The expectation of the would be that workers would refuse to work (high unemployment or non-participation) and those that did work would be paid lower average wages.  According to these common assumptions a country with no minimum wage would have depressed wages and higher non-participation and unemployment.  
       Is anyone surprised by the FACT that a country with NO GOVERNMENT MANDATED MINIMUM WAGE has the highest employment rate in the world AND also pays much higher than average salaries?  Switzerland (a nation with no minimum wage) has full employment AND pays a higher average wage than most other developed countries!   Such FACTS contradict the expectations of those who believe in a society that needs big government to best help workers. 
      Why, in fact, is the "big government is best" assumption opposite of reality?  Could it be that "No government dictated minimum wage" encourages employers to hire workers into entry level positions earlier?  The experience gained by a worker early in a career would result in the production of more goods and services over a lifetime.  Could it possibly be that the relationship between with employer and employee is actually clarified with no government mandated minimum wage?  The employee would be grateful to the employer for the pay they get and the employee would want to help the company succeed!  The employer would want to retain the experience and skills developed and increase pay accordingly.  The clear and better relationship could mean a better wage.  The employer would work to nurture a mutual relationship and so provide better wages rather than one mediated by a distant coercive institution (big government) that draws the loyalty of that worker away from the employer.   When there is no government "thug" to change the nature of the mutually beneficial relationship great things can and DO happen!  The higher wages would be the result of such a society along with greater participation and lower unemployment.  Higher wages would then bring more wealth!   The cycle would continue.
     The assumption that minimum wage law increases average wages springs from a lack of knowledge about the principles which drive economic life.  The keystone of wealth is a contributing and productive people.  The more people who are contributing talents and energies to the pool of goods and services then the wealthier everyone in that society is.  This greater pool of wealth can then be distributed (via individual transactions) with ever increasing generosity because there are more goods and services to exchange!
    Full employment is the secret to higher wages and greater wealth for every society in every type of government.  When the unemployment rate is low nothing could be better for the worker!  That worker can choose who to work for and how much they are willing to accept.  Switzerland, for example, has a greater pool of goods and services even though it overwhelmingly rejected a "minimum wage law" (which reveals an underlying attitude that rejects government coerced mandates).  This greater pool of goods and services takes years to build and flow. People develop skills from the many years of experience working in an economy that encourages participation from the earliest possible start of an entry level worker.  The United States is growing more starkly in contrast to type of economy that encourages full employment and greater national wealth.  The policies of our big government party will likely grow unemployment for years to come.
    The focus on full employment is one important key to having high wages and wealth.  The facts clearly display this.  Recent tax increases, imposed wages, regulation and government coercion clearly provide evidence that non-participation in the labor force increases and human potential is suppressed (causing an "ever widening gap" between the  rich and poor".)

   What if we have a dysfunctional government run NEEDS a dependent class to be elected?  That dysfunctional government would be tempted to create policies (if you had faith in big government-business) that weaken individual contribution and increase the need for government.  This would secure the loyalty of the individual to the government.
     The very reason for interest in minimum wage is votes.  Now that health care is taking ever greater proportions of the economy, high unemployment (hidden by "non-participation") and inflationary behavior of prices (hidden by changing the weighting of calculations) the electoral consequences appear to be dire for the big government party.  What will the big government do?  That same party that had a super-majority in the Senate, complete control of the House of Representatives and a president for two years and NEVER acted on minimum wage.  They knew (and it is well known) that raising the minimum wage would result in further slow down, less opportunity for entry level participants and less younger entry level workers.  While in control they did what they knew had to be done.  They left the minimum wage alone and did nothing!

      So now things change and the big government party needs to win an election!  So now that they are NOT in control they DEMAND that minimum wage be raised!  It is a win-win for the big government party that wants to get votes.  If the small government types deny the minimum wage they can scream "Vote us in to help make wages "fair" (whatever "fair" means!) and stop those greedy evil money grabbing smaller government types!  If the minimum wage law passes unemployment goes up and the impoverished class increase in size.  Now one can blame the same small government types, those evil companies and the greedy rich people.  This duplicitous technique is well known among demagogues and proponents of big government.  In fact duplicity is the key to winning elections and it has the added benefit of enlarging the impoverished dependent class who will vote for you.  Any one remember "You can keep your policy?" (I couldn't!)
     The problem, of course, is that selective prosecution, duplicity (making promises you know will not be true), demonizing and cronyism work.  The big government-business party knows that.  They are just getting ready to win again.

       The fabulous video clip below actually touches on the unintentional impact of "minimum wage".  The person addresses the unintended effect when he talks about "There are no jobs!  The minimum wage is for what?!"  His exasperation is as clear as mine in the segment.  We are locking out so many healthy, productive and good people who could prove themselves if given a chance at a wage "so low" that any business person would want to give them a chance!

Read more questions addressed below:
  The Government is never big enough.  Make it bigger!
  Does our big government truly help families?
  Perpetuating Poverty with the Wrong Solution
  Is our big government a wonderful healthcare provider?
  Why does healthcare matter to those who want freedom?
  Does forcing employers to pay a certain minimum wage help?
  How a government truly can enrich everyone!