Obama and Democrats have been pushing to raise the federal minimum wage from $7.25 an hour to $15 an hour. Their argument is that people making minimum wage cannot support themselves or their families on that little pay. It sounds like a good argument at face value, but such an increase in minimum wage could be devastating to the economy and jobs.
Republicans have blocked the measure from passing, claiming that raising the minimum wage that much would hurt many businesses, causing layoffs, preventing new hires and in some cases causes businesses to close their doors. They also argue that prices on many things would go up to help pay for the increased wages, but Democrats argue that won’t happen.
All they need to do is take a look at the liberally run city of SeaTac, Washington who passed their own minimum wage increase to $15 per hour. SeaTac is a city 15 miles south of Seattle, 22 miles north of Tacoma with nearly 28,000 people. The city is also home to the Seattle-Tacoma International Airport, known as Sea-Tac Airport.
To help compensate for the increased minimum wage they have to pay their employees, Masterpark, who runs the parking facilities at the airport is charging their customers a ‘living wage surcharge. One lady who parked at the airport in one of the Masterpark lots had a parking charge of $84, plus city tax of $3, airport access fee of $2.50, sales tax of $9.16 and a living wage surcharge of $6.93, making her total parking fee come to $105.59. The living wage surcharge amounted to 8.25% of the actual parking fee before taxes.
It seems inevitable that other businesses in the city will follow suit and start passing the cost on to customers. I haven’t seen any reports of layoffs or other effects on local businesses, but I’m sure those reports are bound to start coming.
James Sherk, Senior Policy Analyst with The Heritage Foundation says he’s not surprised at the living wage surcharge at the airport parking. He says that when labor costs increase as much as they are with the increased minimum wage that companies have two basic options. They either decrease their payroll by cutting hours or employees or they raise their prices enough to pay for the increase.
Earlier this month, liberally run Seattle unanimously passed a measure to increase their minimum wage to $15 an hour over several years. It seems that some members of the Seattle city council aren’t going to stop at $15 an hour. Kshama Sawant, who became a socialist after emigrating from India to the US, is a Seattle city council member who told the media:
“$15 in Seattle is just the beginning.”
Seattle’s move to increase their minimum wage has caused at least one business owner to stop plans to expand into the city. David Jones owns Blazing Onion Burgers and had plans to open a new restaurant in Seattle, but now is reconsidering his plans, telling the media:
“I would love to come to Seattle, but I have to do it responsibly.”
The Democratic socialists wanting to nearly double the minimum wage fail to understand that a number of the people making minimum wage will see their hours or jobs cut. The rest of everyone else will see increased prices for most goods and services that will offset the wage increase.
So what have they really accomplished? Fewer jobs and hours and higher prices will escalate the problem further and sink the country into another recession. I wonder if they really care or if that isn’t their ultimate goal? Another recession will throw the country into more economic turmoil, setting them up for their final takeover of America. If you don’t believe me, then just continue to sit on your butt and do nothing and you’ll find out soon enough.