Posted on 02/15/2021 4:03:26 AM PST by Kaslin
resident Joe Biden and Democrats are hellbent on force-feeding a $15 minimum wage increase on the entire country, and thanks to the legislative voodoo known as budget reconciliation, it’s entirely possible they could succeed. It’s hard to imagine anyone actually for this having taken a community college Econ 101 class at any point in their lives, but the truth is, Democrats likely know good and well the damage such a measure will do to the nation’s already fragile economy, yet they stubbornly insist on doing it anyway. Why? Far be it from me to speculate on the impure motives of these ghouls, but my guess is it has something to do with power and revenge - you know, the sort of stuff that has motivated most evil people throughout human history.
Power, because giving something away, in this case, a raise, is always going to cause recipients to be indebted to you. It’s been the Democratic Party playbook for decades, except the best part about this particular ‘giveaway’ is, they don’t even have to ‘pay’ for it. They get the credit while small businesses bear the brunt. And revenge, because the economies that will be the most negatively affected by this are generally located in deep-red areas, and what better way to punish dastardly Trump voters en masse than to wreck their economies, right?
Granted, the idea of forcing employers to give struggling families a pay raise SOUNDS GOOD, in theory at least. Why shouldn’t everyone be able to work hard and earn a “living wage” for their efforts? The problem is that markets, not bureaucrats, are the only entities capable of correctly deciding what wages should be relative to the overall economy. That’s because artificially manipulating one important piece of an economy consisting of billions of moving parts is bound to have negative effects on everything else. What are those negative effects? Here are five, just for starters.
It will destroy jobs
The Congressional Budget Office estimates that upwards of 1.4 million jobs will be lost if the minimum wage goes to $15 per hour. The reason isn’t difficult to ascertain. When the price of something is artificially increased to unreasonable levels, users of that ‘something’ will figure out ways to consume less. Entry-level jobs that once employed inexperienced high schoolers will disappear, either to automation or heaping even more responsibilities on overworked salaried employees. Factories that once employed low-skilled workers will either be forced to shut down or move overseas where the price of labor is lower. Businesses will never start because the high cost of labor adds to already expensive start-up costs.
It will hurt low-skilled workers
Ironically, the very people that Democrats claim they want to help are the ones who will be the most negatively impacted. After all, lawyers, engineers, doctors, and computer programmers will all have plenty of work, at least until Democrats succeed in destroying the rest of the economy. No, the jobs that will be lost are the ones low-skilled workers depend on not just for an income, but as a stepping stone to better jobs in the future. They are literally ripping the bottom rung out of the employment ladder, thus making it more difficult for people to climb on.
It will cause inflation
This isn’t rocket science, folks. When the price of production increases, the item being produced will inevitably cost more. From restaurants to retail to everyday services, get ready to pay more for everything that can’t be exported from China.
The rich will get richer
As my boss at the Daily Caller, Neil Patel, aptly pointed out during an appearance on “Tucker Carlson Tonight’ last week, giant, multi-national corporations like Amazon, Target, and Walmart can easily afford and absorb any increase in the minimum wage. Their small business competitors, however, often cannot. Which is likely why we’re seeing so many large businesses supporting the “Fight for $15,” not because of any desire to do good, but as a way to weed out the competition. As a compromise, Patel interestingly suggested a larger minimum wage for large corporations and a smaller one for small businesses. But Democrats, sadly, are rarely interested in compromise.
It will hurt red states the most
So far, the only place in the country with a $15 minimum wage is the District of Columbia. How are things going there economically? The next highest is California at $14, then Washington at $13.69. Blue states overwhelmingly have adjusted their minimum wages upward, but their residents more than pay for that with a tremendously high cost of living. Shocking the economies of well-run red states with low costs of living by more than doubling their minimum wage is tantamount to economic homicide - a crime Democrats are more than eager to commit, for obvious reasons.
Yes, people are struggling. I’m not denying that. But an oft-hidden fact is that employers are struggling too … to find workers willing to work … and they are adjusting their rates accordingly. Indeed, the average hourly wage has risen from just under $14 per hour in 2000 to over $25 today. If employers could get workers for less, they would. Instead, the MARKET has forced them to gradually raise wages in order to compete with other employers for labor. Working against this, ironically, is Democrat-encouraged immigration, which serves to dampen wage prospects for lower-skilled employees forced to compete with counterparts used to making less than 50 cents on the hour.
If we’re suddenly jumping from $7.25 to $15, it’s hard not to ask why they wouldn’t just go all out and say $20? Hell, why not $30, or even $50? Everyone in America should have the ‘right’ to a six-figure income, right? No? The same problems anyone with an IQ above 60 could see with such a proposal apply just as much at $15. Of course, none of this has ever been about logic, just politics.
I’m fine with a $15/hr minimum wage. I paid that 20 years ago to start for my laborers. The only thing was that I expected performance. And skill level was rewarded with raises.
Yes, a $15 dollar an hour wage would costs jobs for the lower skilled — many of whom are illegal immigrants. Would that be so bad, considering that without jobs, many of the illegals will go home.
“The only thing was that I expected performance”
Expecting performance for compensation??? WHAT? ARE YOU NUTS??!!
The government does not have the right to set a maximum or minimum hourly rate of pay.
Also, a dollar in Mississippi is not the same as in Manhattan.
It’s going to happen anyway so why don’t the Republicucks raise it to $20/hr? Just to mess with the RATS.
Won’t a certain amount of people actually get a pay DECREASE with this?
What a crock...
A $15/hr min wage may mean a drive through meal might cost $100.00 or more!!!!!
That could very well be, but if you think the business would let the employees get their 40 hours a week in, think again. I used to work for minimum wage, and every time the wage went up our hours were cut from 40 hours to 20. So what good is a raise? Not that I blame the owners or managers. The government has no business to stick it’s nose in private businesses. And why should some lazy bum get the same wage as someone that is a hard worker and is always on time and never late.
Yes when their hours are cut, which they will be.
Salaried employees could see a decrease in pay. Along with an increase in work load. The d-bags that advocate this nonsense and are unable or unwilling to strive to do better will find their $150 per week increase will be gobbled up in higher costs for goods.
Public schools teaching diversity and the importance of never cutting down a tree have failed to teach the economics and history these fools need. So when their lives haven’t changed as a result of $15.00, they’ll whine for $20.00. It’s a “living wage” after all.
Another author who misses the point. Democrats want to weed out their giant corporate contributors' competition, too.
Small business has close to zero support on Capitol Hill, since it can't afford to buy any.
“Yes, a $15 dollar an hour wage would costs jobs for the lower skilled — many of whom are illegal immigrants. Would that be so bad, considering that without jobs, many of the illegals will go home.”
I’m not sure about that at all. Most illegals that work, work their butts off, and, more importantly, don’t complain.
What’s missing from this piece is the effect that raising the minimum wages has on other wages.
The guy currently making 15/hour will suddenly ask for a similar raise, and so on down the line.
Inflation here we come.
Maybe a drive through happy meal will be $200.00!!!!
The country desperately NEEDS wage inflation.
BS. The Republican't party loves small business. OTH they hate wage earners...
Do you ever use your brain before you write nonsense like this?
“I’m fine with a $15/hr minimum wage. I paid that 20 years ago to start for my laborers. The only thing was that I expected performance. And skill level was rewarded with raises.”
You obviously were very choosy about the people you hired. They were worth 15 an hour to you, and I got a feeling if they didn’t pull their weight you’d let them go.
If they pass this disaster, you’d have to pay those same people 30 an hour. It isn’t just the minimum wage that goes up, all the wages will go up. And with that also the price of everything.
Add to that the increase in energy costs because they’re limiting production and you have the perfect storm for inflation.
So whatever investment you have make sure it’s one that will do well in inflationary times - that means hard assets and stocks, unless of course the fed starts raising interest rates, which then will morph inflation into stagflation - the Carter years. If that happens then interest rates will shoot up stocks will crater and CDs may be your best option.
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