Now you have a minimum wage of $7, and you have many union industrial, blue collar jobs..often government unions, where they're making, say $20/hr.
That's a big spread in the hourly wage differential. But if the minimum wage goes to $15.hour, you're immediately going to hear demands for BIG increases in the union contracts...you can easily write the script .
I believe I’ve read somewhere that at least some union contracts are written to peg them on the minimum wage.
If the minimum wage is increased, they automatically get an adjustment.
I understand it is already written into some contracts.
But the real reason for this is that it will result in price inflation, which the government desperately needs to continue monetizing the debt.
The reality is that IF there were big profits going to rich people, those profits are taxed at a tremendously higher rate than the lowest tax brackets. The sales taxes on rich toys are tremendously bigger than sales taxes on McMeals. And as has been shown over and over again, when prices on prepared foods go up, people eat more at home, slashing sales tax revenues from restaurants and more is spent on non-taxed grocery items.
And of course, the biggest eater of incomes for the ‘working poor’ - untaxed rents - will skyrocket as well.
So in a couple years, when the public employee unions have soaked the city for a similar 40% raise, and they don't have the money to pay for the retirements of those who no longer work for him, the problems long put off will come back to roost. Less tax ‘income’, far more expensive public employees who are almost impossible to fire or lay off, demands from retirees for raises in pensions, far more expensive health care, and no where in the budget to hide.
I think that is part of the plan. They seem to want to spark inflation.
Inflation is after all a transfer of wealth from the Middle Class to the Government and the Rich.