Lessons for the Living Wage

By Douglas V. Gibbs

Seattle is having a few problems with their massive minimum wage increase.  The liberal left, in an attempt to appeal to the poorly informed, are willing to destroy the free market in the name of a "living wage."  As boycotts and fleeing business infects Seattle's economy as a result of the liberal left pushed minimum wage increase, we are also seeing around the country liberal left minions running around demanding fast food workers make $15 an hour.  Many of those very same liberal left ideologues have also been critical of WalMart because of their average wage being $8.81 per hour.

What would happen if these businesses were forced to increase their minimum wage?

In short, they would go out of business. . . or move out of the country to avoid the idiotic regulations.

That is something that has always amazed me.  The left has always accused the GOP of chasing businesses overseas, yet it is liberal regulations, liberal tax increases, and liberal tactics like minimum wage hikes that actually chase industry giants out of the country. . . while putting out of business the smaller competitors.  Minimum wage increases mandated by government causes massive unemployment, inflation, and economic instability.

Wages, taxes and regulations are simply a cost of doing business, and when the cost of doing business increases, those increases are passed on to the consumer, or alleviated by trying to reduce costs in other areas - such as reducing the work force through layoffs.  Raising the minimum wage does not give people a living wage, it ultimately increases the cost of goods so that all of the unaffected wages become less manageable to survive on while putting many of those that were making the lower wages out of work.

Government increases of wages does not increase the ability for people to live, but makes it more difficult to live.  In other words, it does not raise up the poor, but brings down those that are not, and creates an environment that encourages more dependency upon government programs.

Wage increases by the government are a sure way to increase poverty, eliminate the middle class, and move the United States into a socialist tyranny.

-- Political Pistachio Conservative News and Commentary

Battle over Seattle's $15 Minimum Wage turns to boycotts - MyNorthwest

From the image above: Wal-Mart has 2,000,000 employees.  Average Employee makes $8.81 per hour.  Paying $15 per hour would give a raise of $6.19 per hour.  That would cost Wal-Mart an additional $12.4 million per hour, which would cost Wal-Mart an extra $99 million per 8 hour day, which would cost Wal-Mart an extra $36.15 billion per year.  Wal-Mart profited $16.8 billion last year.  This raise would cause Wal-Mart to lose $19.35 billion.  A minimum wage raise inflicted on Wal-Mart, without a massive series of layoffs, would put Wal-Mart out of business.