This is why I'm against a mandated minimum wage- [reason.com]
The min wage hike is hurting exactly the target employee it is designed to help. In the article, it's the busboy, whose job was eliminated as a direct result. I've read many accounts showing the forced wage hike is hurting more than helping in the form of shorter hours resulting in even less net pay.
I thought the "path to success" angle was interesting too. I liked the example of the general mgr who started as a busboy and that this pathway was being closed off. No doubt other entry level jobs will simply disappear because it's simply not worth it to pay that wage for that work, something the political geniuses do not take into account.
Minimum wage is price fixing. It fucks with supply and demand, and changes the equation. Its monopoly collusion, leads to a shortage of jobs, and higher profits (wages) for the fewer suppliers that survive.
It cuts the lower rungs off the economic ladder. It always leads to calls for more welfare to assist those suppliers cut off from the market. It leads to more taxes and debt.
It raises prices for those who need the price fixed labor. Those increases get passes on to their customers.
It’s anti liberty for both the employer and employee.
But the politicians win, and the sheeple have good feelings.
^^^^^^
What he said.
One of the sharpest, most well thought out posts I've seen on this board, and that's really saying something because there are some pretty smart cookies hanging out in this joint.
There are far better ways to close the income gap and build a large middle class, but "raise the minimum wage" makes for a quick and easy sound bite, so that's the mantra the politicians adopt to get votes.
I'm against a mandated minimum wage because it does absolutely nothing to narrow the wage gap or eliminate poverty. Raise the minimum wage and the cost of goods and services follows suite, there by eliminating what good was intended by raising wages.
If we want to eliminate income disparity and create a larger middle class, then we need to stop handing out corporate welfare to businesses which refuse to pay their workers a living wage. No more corporate tax breaks. No more government funded low interest loans. No more kick backs or bail outs.
This is America, and if you choose to start a business and pay the people who work for you poverty wages, then that is your right. This doesn't mean that the citizens have to support your greed and hubris through their taxes.
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