Minimum Wage and Overseas Cash

A favorite “man-on-the-street” argument for minimum wage, especially now, is that “corporations are sitting on mountains of cash overseas” and that minimum wage would force these organizations to bring the cash home and invest it here.

There are many problems with that argument, but the largest is the idea that minimum wage firms are multinationals.  To be fair, some are (Wal-Mart, for example).  The majority are not.

The majority of minimum-wage jobs are in three sectors: Education & Health Services, Retail/Wholesale, and Leisure & Hospitality.  The majority of those are small businesses, not likely to be sitting on a mountain of cash; they are the ones most likely to be hurt by such legislation.

One thought on “Minimum Wage and Overseas Cash

  1. Another problem with the overseas cash argument is that the cash isn’t really overseas. Foreign subsidiaries need to invest their dollars somewhere, so they end up purchasing, stocks, bonds and properties right here in the USA.

    Liked by 1 person

Comments are closed.