The Virginian-Pilot
                            THE VIRGINIAN-PILOT  
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Monday, August 19, 1996               TAG: 9608160019
SECTION: FRONT                   PAGE: A6   EDITION: FINAL 
TYPE: Letter 
                                            LENGTH:   34 lines

MINIMUM WAGE INCREASE IS COSTLY

Remember the ``good `ol days'' when a gallon of gasoline was less than 30 cents and the minimum wage was $1.65 an hour? We were so thankful that our government had given us this standard to better our living conditions.

Then the price of everything began to rise and the government began using terms like ``spiraling inflation'' and ``soaring interest rates.'' The public outcry was so loud that President Nixon imposed a wage/price freeze in an attempt to contain the inflation.

This freeze, although it temporarily curtailed inflation, shortchanged those who were due a wage increase through plain hard work and did nothing to equalize the cost-of-living-to-income ratio.

Recently our government has imposed yet another wage increase, which will be lauded as a wonderful accomplishment and will be touted greatly in the upcoming elections.

Please note the timing. We have a wage increase which in turn increases production costs. These costs will be passed back to the consumer, creating inflation. To curb inflation, the Federal Reserve Board will raise the prime interest rate, all of which won't take place until after the presidential election. What a mess!

If the government really wants to help the minimum-wage worker, it should allow tax incentives to employers so they may train and motivate employees to achieve a point of production beyond the minimum. Common sense should dictate that if an employee is not profitable at $4.25 an hour, he is even less profitable at $4.90 an hour.

CHARLES GYGI

Powells Point, N.C., Aug. 5, 1996 by CNB