THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, July 26, 1996 TAG: 9607260017
SECTION: FRONT PAGE: A18 EDITION: FINAL
TYPE: Letter
LENGTH: 49 lines
Steve Neal (``Well-trained employees are valuable,'' letter, July 14) errs in his analysis of both Robert Reich and the federal government's wise decision to raise the minimum wage.
One of the cardinal assumptions that Adam Smith, the father of the capitalist theory, stresses over and over in his writings is that there must be a free marketplace governed by Christian principles. At no time in the history of man have these conditions existed; hence the need for regulation.
Business is motivated by profit. This in itself is good, but we see all too often that this becomes excessive. Consider the case of AT&T, which, despite record profits, downsized a large part of its work force. Your tax dollars and mine go to retraining these people for other jobs through our education system, not to mention the stress and social consequences on children and families.
Since man does not always act in a moral way, the government, often at the request of business seeking competitive advantage, has been forced to pass regulations. The minimum wage has been raised seven times since its inception. Each time the economy has gone forward immediately. For the good of all, society is saying that there is a minimum wage necessary and proper for any worker.
I find it strange that many so-called conservatives oppose bringing the poorest members of our society (and many people starting over in light of a changing economy) to a level of income where they could purchase items from small businesses. I hear no complaint about the hundreds of billions that go to corporate welfare each year or to new loopholes in tax and bankruptcy laws that let business owners charge off hundreds of thousands of dollars of debt to other businesses or to the taxpayer.
Being a business owner is perhaps the toughest career choice one could make. You have to put together people and resources. A better allocation of small-business time and energy is to petition the government to rewrite and simplify regulations governing industries. This will produce far more profit than trying to stop a necessary cost-of-living raise to millions of Americans.
In today's fast-paced economy, one never knows when he may be forced to work in a low-skill job. Many people with trade skills or advanced degrees have been forced to take lower-paying jobs as the economy changes.
Sad to say, the days are over when a person went to work and stayed there until retirement. A step in the right direction would be for employers and employees to put each other's needs first instead of being at each other's throats.
C. P. PIERCE
Norfolk, July 15, 1996 by CNB