The Complexity of Minimum Wage Comparison and Its Impact on National Independence

Under the current contexts, the federal minimum wage in the United States has remained at $7.25 per hour since July 24th, 2009, while Australia's federal minimum wage is $15.00 AUD. This discrepancy often sparks debate and criticism, particularly from those who see it as a reflection of broader political or economic issues. However, the comparison is often oversimplified and lacks the nuanced understanding needed to grasp the true nature of these differences.

Comparative Economic Values

It's often pointed out that 15 AUD is approximately 10.80 USD. Moreover, when factoring in the additional taxes like PST, GST, and HST in Canada, the purchasing power of 15 AUD aligns closely with 7.25 USD. This means that, in practical terms, the disparity in hourly wages does not significantly impact the purchasing power for workers in Canada and the United States.

Independence and National Sovereignty

It is essential to recognize that a country's economic policies are deeply intertwined with its national sovereignty and independence. The United States, as a nation, has been independent since declaring its independence from Britain in 1776, and this autonomy is not tied to the minimum wage. The principles of our independence, as articulated in the Declaration of Independence and the Constitution, are rooted in a commitment to individual liberties and self-governance. These core values guide our policies, including our minimum wage standards, rather than external pressures or comparisons with other nations.

Employment Agreements and Economic Rationality

Employment agreements in the United States are primarily governed by the voluntary consent of both the employer and the employee, except in cases where a union is involved. Employers are only willing to pay the minimum wage when they believe they will receive a return on their investment that is greater than the return they would get from other investments such as an index fund tracking the stock market. For example, if an employee can demonstrate that they can add value of $21.75 per hour (including benefits and government loadings), the employer is willing to pay at least $15.00 per hour.

Importance of Demonstrating Value

During the interview process, employees have the opportunity to show the employer that they are capable of adding significantly more value. They must demonstrate high skills and a positive return on investment. If an employee convinces the employer that they can add more than $21.75 in value per hour, the employer is willing to offer the higher minimum wage. This process is just one aspect of the dynamic relationship between employers and employees and the broader economic landscape.

Encouraging Employers to Offer a Fair Wage

To ensure that employers are willing to offer a fair and reasonable minimum wage, employees must be proactive in showcasing their skills and value. In a competitive job market, employers are more likely to offer higher wages when they see that an employee can add significant value. Employers, in turn, benefit from hiring such employees, as they receive a higher return on their investment.

Conclusion

The comparison between the minimum wages of the United States and Australia should be evaluated not just in terms of dollars, but in the broader context of national independence, economic rationality, and the value that employees can offer to their employers. While the minimum wage in the United States may be lower than in Australia, this does not necessitate a shift in policy or a loss of national independence. The strengths of the U.S. economy, rooted in individual liberties and self-governance, are more than sufficient to maintain its position as a global superpower.