And so it begins…

With more Americans out of work than we’ve seen in a few decades and employers holding the upper hand in just about every facet of the job market, we now have the first decrease in any state’s minimum wage since the Federal minimum wage went into effect in 1938. That dubious distinction goes to the good folks of Colorado, but heaven help us all.

As Chris Rock said, the minimum wage means that if they could pay you any less they would, but it’s against the law.

American companies have shown little regard for the long term welfare of their employees; they have eagerly taken advantage of overseas outsourcing, illegal workers here at home and mass layoffs at the mere whiff of economic bad times.

So you can bet your bottom dollar (probably the only one you have left) that a veritable army of lobbyists will be dispatched to state houses around the country using Colorado as an example and asking for lower minimum wages.

But if you dig deeper you’ll see that in the case of Colorado, the decrease comes as a consequence of their minimum wage being pegged to inflation, not any other political or business calculation.  But with the decline in consumer prices that we’ve seen over the course of several months the net result is that many Coloradans will see their paychecks shrink in 2010.

Of course most people don’t make just the minimum wage, but overall trends in pay affect everyone. When the lower end of the wage scale is depressed, it drags down the earnings of the middle class.

Businesses argue that the higher the minimum wage, the fewer people they can employ. While there’s obviously some degree of truth to that, in these times it’s a convenient excuse to oppose paying a penny more than they can get away with.

Regardless of what states do, there is still a Federal minimum wage. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour, which took effect in July.