As I write this article, we are in the midst of the political season. Candidates continue to talk about the fact that the middle class in the last decade is not making any progress. They are calling for minimum wage increases to improve their standard of living. I, however, believe they are looking at the wrong metric.
I do not think we should focus on wages, but should consider if are we better off and how that has come about. As part of my business consulting, I interact with many people the politicians would consider the working poor. I have to say I rarely meet anyone that does not have at least one television, a smartphone, and at least one car. Moreover, no one I meet can say they are hungry even if they are homeless.
I believe the narrative that wage growth is the cure-all for an ailing middle class is misguided and essentially wrong. Many entrepreneurs are stockholders or investors in their own small businesses. Many small businesses created the jobs where the middle class is employed. Even when a small business employs just one person, the owner, their business not only enriches their own life, but the business makes a product or provides a service to the masses.
Higher minimum wage just means more taxes for the government. The real question is how do we promote a higher quality of life? If you ask me, the answer is to promote more small business start-ups. That is the reason why start-up businesses are often cited as the economic engine in America.
Are you better off on the whole and is living a little easier today even though your income may be flat? What can you do to change the narrative from wage growth to opportunity growth and being better off generally?
