Leftists and the Minimum Wage
Wealth inequality has always been a favorite topic among leftists. For over fifty five years, the government has been fighting the “War on Poverty,” and that war has been lost. Naturally, the left has been searching for new solutions recently, and they’ve settled on one solution in particular: raising the minimum wage.
The #Fightfor15 has been going on for quite some time now, and it’s been implemented in some places, including Seattle. The results were exactly as we libertarians predicted; raising the minimum wage has unintended consequences, like employers cutting hours, firing employees, raising costs, or any combination of the three.
Take Seattle-area child care businesses, for example. Now that child care businesses have to pay their employees more, these businesses have had to find ways to mitigate the increased costs. Many have turned to increasing tuition, while others have fired employees or reduced the number of hours employees are allowed to work. In other words, basic economics happened.
The #Fightfor15 is hurting the food industry, too. Restaurant owners have taken measures similar to those taken in the child care industry, as some restaurant employees have seen their hours drastically reduced, while others have been fired. Some restaurant owners have even chosen to close the restaurant entirely on multiple days throughout the week to offset the increased cost. This has left many employees wishing they could go back to the old minimum wage.
In a bit of poetic justice, the #Fightfor15 is hurting political campaigns, too. Senator Bernie Sanders – one of the loudest and most notable supporters of raising the minimum wage – has cut his employees’ hours to be able to afford to pay them $15/hour, meaning his employees won’t see an increase in pay in the end. As much as Sanders likes to ignore basic economic principles when he’s spewing his nonsense, he still has to abide by them.
Not to be deterred by basic economics and reality, the House recently voted to raise the federal minimum wage from $7.25/hour to $15/hour. This is essentially meaningless, though, because there’s little to no chance that this bill would make it through the Republican-controlled Senate or be signed by President Trump.
This will matter in the future, as the House passing this bill proves that Democrats on a national level support raising the minimum wage. Once the Democrats control the presidency and congress in the future, they will pass another bill like this one and put it into action. This means that, as soon as 2021, the federal minimum wage could rise to $15/hour.
For some people, $15/hour just isn’t enough. Representative Rashida Tlaib recently announced her support for a $20/hour minimum wage.
In a way, I’m impressed by Tlaib’s commitment to not only being economically illiterate, but to being more economically illiterate than her colleagues. I’d always thought that nobody could be worse than Bernie Sanders on this issue. For once, a Democrat proved me wrong.