By Douglas V. Gibbs
It's basic economics, and common sense, when it comes to all of this minimum wage talk. I am not keen on the government controlling wages as it is. But since they are, raising the minimum wage does nothing for those at the bottom of the economic ladder, and it dramatically hurts the middle class.
Wages are just another cost along with many other costs when it comes to doing business. There are profit-margins that must be met, and to be honest, companies are in business to make money. That is the reality of it all. Why would anybody open for business with the goal of making no money?
So, if a cost of doing business increases, rather than allow their business to die from changing numbers, the company adjusts to the increase in the cost of doing business by reducing the cost of doing business in other parts of their business.
If a cost increases, be it an increase in the price of raw goods, or taxes, or wages, the business in question has a number of ways of dealing with the problem. They can increase their prices, reduce the cost of what contributes to the quality of the product, reduce hours of the employees or the number of employees, or decrease the amount of product the consumer receives for the price. So, if minimum wage goes up, eventually, and pretty rapidly, the cost of living will catch up because prices will rise as the number of jobs available decreases. In the long run, the increase of minimum wage does not help those making those wages, it only increases those bottom wages and the overall cost of living. . . together. However, the middle class suffers because as prices rise, their wages do not increase, and their ability to survive suddenly suffers because prices, as the result of the increase in the minimum wage, begin to rise.
So, the selfishness of people in lower-end jobs who refuse to increase their wages by changing jobs, increasing their marketability by learning a new skill, or figure out another way to survive, in the end, drags everyone else down to their level, and probably lose their jobs, anyway.
If an employer has employees forcing him to increase the cost of doing business, and he can't cut the costs anywhere else, then the employees will be gone, replaced by something that will operate for less cost, like technology..
Increases to the minimum wage, then, damages the middle class, and increases poverty, while killing the number of jobs that were demanding a higher minimum wage.
How is that good for Americans?
The fact is, the liberal left democrats don't want to decrease the number of those in poverty. They need people to be in poverty, and it is their goal to lose the war on poverty, and to ultimately increase the number of people in poverty. Doing such a thing is good for their political agenda. It creates more people dependent upon government.
Overall wages are down, and artificially holding them up with minimum wage laws does not help. . . it hinders. An increase in wages as wages are supposed to increase (you know, as the result of innovation and prosperity in a thriving private sector) begins with an increase in production, and once the supply begins to increase, consumerism can then take advantage of the products available. As demand rises because product is available, and money is in people's hands because they participated in creating the supply (which happens when government gets out of the equation and lets the free market do its thing) then wages rise naturally, and the number of jobs available increases. Otherwise, it all remains stagnant, and with more government influence, the economy suffers, jobs are lost, and overall wages drop.
So, we have a choice. We can have less government involved so that businesses are free to do what they do to invigorate a free market, or we can let the government force itself even more so into our situation, making it harder to do business, and more expensive to do business, which in turns kills the middle class, kills jobs, brings down overall wages, and increases poverty in America.
The former has a history of success in America, the latter has a history of killing prosperity.
-- Political Pistachio Conservative News and Commentary
U.S. Wages Down 23% Since 2008 - Breitbart
Here's How the Price of Your Favorite Fast Food Would Change With a $15 Minimum Wage - The Daily Signal
A $15/Hour Minimum Wage is Bad for Business - Investor Place
The Absurdity of a $15 an Hour Minimum Wage - Forbes
Furious fast food workers take to streets for more pay - Associated Press
'We're a movement now' - NBC
Dozens Arrested At Detroit MCDONALD'S - CBS Detroit
Cuffed in Times Square - Fox New York
Burger robot cranks out 360 per hour - Business Insider
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