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How Business can survive the $15 Minimum Wage Hike

How Business can survive the $15 Minimum Wage Hike

On Thursday, the U.S. House of Representatives voted to pass legislation that would raise the federal minimum wage from $7.25 to $15 over the next six years. These are the progressive plans that have the youth of America believing that working in a coffee shop is a career, and not a means to an end.

Malcolm X said it well in a speech at UC Berkeley in 1963, where he chided the white liberal as being the destructive force to the black people. The prophecy of Malcolm X has deleteriously hit the black community again in the form of eternal low wage jobs. The Raise the Wage Act was introduced to Congress by Rep. Bobby Scott (D-Va.) in January. It again proves that his education at Harvard, now a cesspool of lower learning, means little in the real world of business. The photo ops of Nancy Pelosi and other white women holding black children in glee only further support the Malcolm X thesis.

There are actually learned men who are in the field of economics who would today support such theories that a minimum wage increase will disproportionally hurt the ones it is meant to help. An overwhelming majority of American labor economists agree that minimum wage hikes are an inefficient way to address the needs of poor families, according to a national survey of the American Economic Association (AEA).

Look, no one wants to see people struggle financially, but this socialist move of regulating the market price of labor will only exacerbate the situation of low-skilled workers. More than two-thirds of labor economists (68 percent) believe a mandated wage increase will cause employers to hire applicants with greater skills. This is where capitalism steps in and trumps government regulation. Simply, businesses will automate positions which are now performed by low-skilled workers, which was prompted by the very legislation set out to help them.

This is what is known as classical, or real wage unemployment. Classical unemployment is caused when wages are too high. This explanation of unemployment dominated economic theory before the 1930s, when workers themselves were blamed for not accepting lower wages, or for asking for too high wages. Research from David Neumark at the University of California at Irvine shows that for every 10 percent increase in the minimum wage, low-skilled unemployment increases by 8 percent.

Based on these results, the houses wage vote is bad news for African American teens who already suffer unemployment seven times higher than the rest of the nation. Your own liberal federal bureaucrats even agree. A recent report from the Congressional Budget Office concluded that a raise to $15 an hour would cause the loss of 1.3 million jobs. Statistics can be used by either side to put forth their agendas. However, business will do what business has to do to survive in a capitalistic system, which by the way, a majority of Americans still agree is the preferred form of economics.

While the Democrats have control of the house and this bill, they now pass the baton to the Republican-controlled Senate, where it is expected to face stiff opposition.

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  1. Allan MILES

    Every Single Time there is a wage increase the cost of all basics rise and the person whom the wage increase was supposed to help gets squashed down ever further. If a freeze on groceries ; gas and basic items was enforced then wage increases would be beneficial. However this has never once occurred and the poor ones become even poorer. It is simply a Merry Go Round to appear there has been an improvement when in reality the problems of the low wage earner were drastically increased. Top wage earners Greed is what needs to be Curbed.

    • noel

      plus the farmers produce less because they cannot make any money thus less on the shelves. I am a firm believer that the market should effect your salary. No incentive for upward mobility. Industry moves and restaurants close or raise their prices

  2. Daniel

    Coffee Shop type jobs were only intended to be entry level employment only. The intent was to teach these “newbies” about work ethic and responsibility. College students frequently utilized this level of employment to subsidize their college expenses. Employers were usually flexible with their work hours to accommodate classes and exams. It was just intended for experience and personal growth.
    Employers, under this new pay system, will be hard press to show a profit and will have to use draconian measures to stay viable in their market. Case in point; I was at a M Donald’s and noticed that they had gone totally automated with only two employees. One took our order on a keyboard while the automated system made up our order. The other was a clean up employee cleaning tables and taking out the trash. Other then doing their jobs they were of very little help when asked any questions.
    I suspect this is the dismal future for the small business franchise owners.

  3. bob jones

    your guess as good as mine