The “minimum wage” has been front and center in todays news cycle, with plenty of politicians grandstanding on this subject from President Obama to the Governor of Massachusetts, Deval Patrick, recently signing a new minimum wage into law. As this may seem like a good thing, it is sad to see this subject still has a foot hold in the minds of the people of the United States.
There is a law that far out weighs any “minimum wage” laws that can be signed into law and it has been working on this earth since the beginning of time and no matter what laws we sign into effect NOTHING can break this law.
It’s called the “Law of Compensation”…
This law has three components:
1. The need for what we do
2. Our ability to do it
3. The difficulty there is in replacing us
Our compensation will ALWAYS be determined by those three things regardless of what the minimum wage is. The reason why the minimum wage is a mute point is because when the minimum wage is raised, people will have less hours and the prices will go up accordingly. So even though your pay may go up, the prices go up along with it.
But when you start to work within the “Law of Compensation”, you start to look at ways to make sure that you are a person who provides greater value and is harder to replace.
The fact is that raising the minimum wage actually hurts those who the law was intended to help. And the scary thing is the politicians that make these decisions know this and they do this on purpose. They are going after the “blind” votes of those who are looking for “something for nothing” which is exactly what a raise in the “minimum wage” is. It is a “something for nothing” law preying on the weak minded.
But when those people end up losing their jobs because of this “minimum wage” law, they get on unemployment or welfare or food stamps or all of it and they then become a slave to the state, which is the source of their well being.
This subject is really only for those who want to better themselves based on their own efforts. Those who want to rely on the government for their source of food and income can stop reading now…
In the United States of America, the income scale is actually a latter. A latter to climb if your interested. If your not interested then you can wait for the government to vote the next minimum wage law into effect.
But for those who want to climb the latter, then it is imperative to learn the “Law of Compensation” and how it effects your compensation.
Let’s look at the three components to the law of compensation:
1. The need for what we do – If you choose to flip hamburgers at McDonald’s currently there is a need for this but you may want to go to school and get into something that may be a little more sought after maybe in the computer field but again the chose is yours just remember that the combination of these 3 components will effect your pay.
2. Our Ability to do it – Now this is where our individual abilities become very important. Now let’s go back to flip hamburgers person, so we have the person who works for McDonald’s who hasn’t seen to develop anymore skills but is proficient in flipping hamburgers so he is still making a little money and may have gotten a raise due to the time he has been on the job. And then there is the person who loves to cook who has decided to improve their skills and have gone to culinary school to hone their skills and have graduated and went on to cook at a fine restaurant. Do the names like Bobby Flay, Emeral Lagasse ring a bell!!
3. The difficulty there is in replacing us – Let’s go back to our burger flipper at McDonald’s, he’s still there… How hard is it to replace this person? Not to hard… But what if this same person went on to learn how to make fries, run the register, manage the place and at the same time saved his money as he went and then another franchise opportunity opened up and they were able to take advantage of it. Much harder to replace and compensation has increased exponentially.
Forget the minimum wage unless you plan on staying on the bottom of the income latter, the real growth is when you look at yourself as a person who can provide value to others, a value that others are willing to pay for.
As Always, Here’s to Your LifetoSuccess,
God Bless You,