Liberal Democrats are pushing to raise the federal minimum wage from $7.25 per hour to $15 per hour. They claim that it will help millions of Americans to provide for their families and require less government assistance.
The argument looks good on the surface, but like so many other things in life, the liberals fail to logically think through the consequences of what they are demanding.
To start with, thousands of small businesses are already in financial trouble due to Barack Obama’s increased taxes and Obamacare. Drive through your town and look at all of the empty shops and offices that once seemed liked thriving businesses. In some cities, the impact has been harder than others, but every city in America has seen their fair share of going out of business signs.
In most businesses the largest expense is salaries and benefits. In order to survive in today’s economy, many businesses have cut most of their employees’ hours to less than 30 hours per week. How many people can survive a 25% cut in pay? This allows the business to avoid providing benefits under Obamacare, keeping their costs down. It’s cheaper to pay ten part time employees with no benefits than it is to pay eight full time people with full benefits. You get the picture.
But regardless of how many businesses, small, medium and large, will shut their doors if the minimum wage is more than doubled, think about what it’s going to cost you at places like McDonald’s or your favorite grocery store?
You saw or heard about the thousands of fast wood workers in 150 cities across the nation that went on a one day strike in support of the $15 minimum wage. What if they got that huge raise? Chances are, the next time you pull up to the drive thru window and look at the menu, you’ll gasp in shock at the prices. Imagine a simple Big Mac Meal that you were paying around $5.69 now costs nearly $8. Like Mexican food? A Chipotle’s Steak Burrito Bowl may jump from around $6.65 to over $9. You say you like Wendy’s burgers better than McDonald’s? Try paying nearly $9 for your Son of a Baconator Combo that used to cost you about $6.50.
Most grocery stores that I know of pay most of their starting employees around minimum wage. If they have start paying beginning employees $15, where do you think they are going to get that extra cost from? That’s right, you and me. Virtually every price in the store will jump in order for them to pay the extra salaries.
The same will be true for many gas stations, where gas is still outrageously high compared to a few years ago. Ever stay in a hotel or motel? Warm that credit up if they have to pay all of the cleaning and laundry people $15 per hour. Restaurant cooks and dish washers don’t get tips, so they’ll have to be paid $15 per hour also, which means that steak dinner will jump a few more dollars and make eating out even more expensive.
Raising the minimum wage from $7.25 per hour to $15 per hour will only put more people out of work and significantly raise the cost of living in order to pay for it. If the cost of living increases enough to pay for their increased wages, then the $15 per hour won’t go as far as it does now and minimum wage workers really won’t be gaining as much as they hoped for. It’s not a win-win situation, but a lose-lose situation that America and Americans cannot afford.