We’ll just see inflation. A return of what we went through back in the 1970s.
There is a reason why economics is no longer offered as a course in public schools, politicians can’t deal with a public that understands it.
Good article and absolutely spot on! The bad news is that it seems those pushing the $15/hr idea never worked in a small business or managed some profit-seeking enterprise. They could read diLeo’s article and only come away with some polemic about the rich not wanting to pay the underlings.
The government should pay it out indirectly by funding it through an employment levy on all the greedy anti-American companies and corporations hiring foreign worker trash instead of Americans.
a levy, equal to the prevailing industry wage or the wage paid to any H1B, H4EAD, or OPT or work-based green card holder (a vast, vast majority of them being Indian)
This money should be paid to all displaced American workers forced to work at minimum wage part-time jobs due to being locked out of their own industry.
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I love the $15 minimum wage.
Two reasons...
(1) It completely destroys the economic rationale for massive low skill immigration, especially since Biden plans to give Green Cards to all the illegals.
(2) It compels USA business owners to invest in labor saving machines and expert software. Currently, the USA trails both Japan and northern Europe in automation.
Look at WalMart, Target and most grocery chains. Evey remodel adds more self-serve registers and departments. My local grocery store has 9 self scan registers and only 6 regular registers. Of the regular registers, you are lucky to see 2 open on any given day. Weekdays from 7-10 ish they have 2 open, then only 1 until 3-8 or so when they reopen a 2nd. Weekends only have 2 and one cross trained bagger who rings as needed.
That is a tread that will continue.
60 cents increase per gallon of gasoline in my city just today.
I can’t remember if the country went bankrupt after going from 3.35 to 7.50 or whatever it is. We are the party of no so I’m not sure why anyone is surprised that we’re against this.
Many minimum-wage earners are going to be very disappointed with how little of the increase they will actually get to spend.
They will either lose their job & all earned income — or will lose a large chunk of the increased wage to tax increases, and subsidy decreases.
Higher wages = increased income taxes. The federal government will take about 13% of the wage increase.
Then, there are the ‘claw-backs’ on various subsidies paid to low-income people. Social housing charges about 30% of income for rent. Obamacare subsidies drop by about 9.8% of each additional dollar earned. The same applies to all other means-tested government subsidies — whether for heat and electricity, child care, etc. Considering all increased taxes and reduced subsidies, over half of the increased wages will never see the inside of many minimum-wage earners’ pockets.
Governments, OTOH, will save a bundle.
Minimum wage mostly helps those who cannot live on what their efforts are worth - mainly the lazy who feel entitled to the fruits of the labor or others - today’s typical Dem.
$15.00/hr would ruin the Cloward-Piven strategy.
I have one word: productivity.
That’s why the minimum wage is a disaster.