America Needs More Competition–Minimum Wage Not An Answer

California’s legislature will be voting on new legislation prompted by unions to raise the minimum wage in California

to $15/hour. The veiled threat was if it was put on the fall ballot as an initiative by the unions, it would be more draconian. The legislature decided it better take control and create the minimum wage but with a couple of exceptions–if the economy tanks, the graduated raises would be postponed.

We do need higher wages, but regulating higher wages is not the best way to achieve them. This can make it even harder for businesses to compete. A lack of competition in America is the elephant sitting in the middle of the living room and being ignored by everyone. Over the last 20 years America has been concentrating its revenue into four major companies in each of her sectors. They include IT, Media, Manufacturing, Transportation, Retail Trade, Finance and more. Taking a look at the big picture, the same pattern occurs, has occurred or will occur in all segments. For example, the airline industry is now controlled by four major airlines, American, United, Delta and Southwest and the health-care purchases are controlled by four insurance firms, Anthem, Cigna, Aetna and Humana. Consolidation in the cable industry is now more tightly controlled and Americans are relying on a monopoly provider. Prices have risen at twice the rate of inflation over the last 5 years. This creeping consolidation across America closes out smaller firms and prevents healthy competition.

To read the full blog head over to: http://bit.ly/MinWages