Nothing sounds better than to increase a person’s wages, especially those who subsist at the lower rungs of the economic scale. If you are among those who think the Democrats unrelenting mantra of minimum wage is such a great idea, consider this. Why not legislate to raise all wages. That’s it! We will just rule that everyone in the nation will get a 100 percent pay raise. Think of all the good that will come of doubling the salary of every American.
Now, if you know anything about economics, you know that such a regulatory move by the government is a really bad idea. It would wreck the economy. It is toxic. So, what is so good about a little bit of monetary poison in the form of a minimum wage?
For sure, many employees will enjoy the benefits of the minimum wage, but not nearly as many as one might think. First of all, the vast majority of workers already exceed the minimum wage. Many other workers are part timers or contract workers, and not subject to minimum wage considerations. It does not apply to the legions of self-employed. Of course, it does not apply to the unemployed.
Oh! Speaking of the unemployed. Every increase in the minimum wage has created more unemployed as employers offset the payroll increase with job cuts in order to keep a fairly constant overhead. In labor circles, this is known as “benefiting the survivors.”
The other untoward outcome of a minimum wage increase is the accompanying increase in the cost of goods and services. We are already crying in our fried rice over the low wage advantage of
If you wonder why the Democrats would embrace a policy that would throw low-income people out of jobs, think cynically. I often point out that a party that relies on the poor and the unemployed as their power base are going to make more people poor and unemployed. The minimum wage issue, bad as it is for the economy, is great politically for the party that derives its power from pandering to the poor.