Home > Economics, Many Bloodsucking Leeches > Unrealistic Minimums

Unrealistic Minimums

Big news out of Washington this week.  By executive order (read: fiat), they have raised the minimum wage for workers on all federal contracts.

Well done, guys!  If you raise it, they will come – or something.

Except, of course, that this change will affect almost nobody.  I am aware of no federal contracts that use minimum wage workers.  That, of course, does not mean that there aren’t any – maybe there are some food service contracts in federal prisons or something – but it sure does not sound like any contract I have ever been part of or near.  In fact, federal contracts usually have to observe union minimums in the local area – an old sop to labor.  In all likelihood, this little piece of flaunted executive overreach will not “help” one single person you have ever met.

Still, let the press releases sally forth and let the politicians claim, once more, to be firmly on the side of the little guy.  After all, it is doubtful that this little order will actually cost you a penny – other than paying for the press releases, of course.

Until, of course, it is used down the road as the casus belli for further attempts to raise the minimum wage altogether.  After all, why should federal contractors be paid better than the rest of us.  Rinse, repeat.


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