Rather than allow the free market to work its magic, Democrats will seek to defy well-established economic principles by imposing an artificially high wage on businesses that cannot afford them.
As such, the net result will be a massive loss of entry-level jobs — 2 million or so — that provide opportunities and life experience for Americans coming into the workforce.
As reported by the Washington Free Beacon, workers, academics, and business owners are panning congressional Democrats’ push to raise the national minimum wage to $15 an hour.
On Wednesday Democrats led by socialist Sen. Bernie Sanders of Vermont, who has never owned a small business, introduced legislation to raise the wage from its current $7.25 an hour to $15 by 2024. The measure will also eliminate the tipped wage credit by 2027.
“The current $7.25 an hour minimum wage is a starvation wage,” Sanders — who, again, doesn’t operate a business and doesn’t have to make ends meet, said. “We’re going to have a minimum wage that is a living wage.”
But David Macpherson, chair of Trinity University’s Department of Economics, said that kind of increase would devastate employment, the Free Beacon noted.
He said that currently, just 3 percent of U.S. workers are employed under the minumum wage. But raising it to $15 an hour would increase that to 44 percent of the U.S. workforce, decimating profit margins for small-to-medium businesses who would then have to eliminate workers to stay afloat.
That means that poverty would increase, not decrease — just the opposite of what Sanders and socialst Democrats claim.
Ssing Congressional Budget Office methodology, Mcpherson said about 2 million jobs would be lost under a $15 rate, with the heaviest losses coming in the poorest states.
A perfect storm for creating more poverty.
The job losses are not hypothetical. There is real-world proof that when Leftists defy the free market and artificially increase wages to a level that exceeds the economic capabilities of businesses, jobs are lost.
The Beacon noted:
Heidi Mann, who operates a small franchise business of Subway restaurants in Washington state, said that the threat of lost jobs and shuttered businesses is real. She was forced to lay off four of her seven employees at a Seattle location after the city passed a $15 minimum wage and shortened the business hours to make do.
Her Seattle location will most likely shutter by March of 2020 as customers go elsewhere. She expects the same thing will happen across the country if the $15 rate becomes the law of the land. Workers will bear the burden, she said, pointing to the fact that she can no longer take a gamble on inexperienced employees. Most workers at her suburban Kirkland location are teenagers, compared to the pair of middle aged workers that staff her Seattle Subway.
“These significant [increases] will not only lead to job loss, but our workers will lose out on building their work experience,” she told the news site. “It’s been frustrating and deflating to watch.”
There are other examples. Lots of them. And anyone who owns a small business (which create the vast majority of jobs, Bernie) will tell you that imposing artificially high wages on them will create financial obstacles that make it impossible to make a profit and stay in business.
Democrats will get lots of Americans to support this disaster because the Left has created a large segment of people within our society who have been duped into believing that someone else owes them something they haven’t earned.
But by the time they realize it, if this nationwide wage ever passes (doubtful at this stage), it’ll be too late to save their jobs and salvage their economic futures.
Then the riots will begin for real.
The fact is, there shouldn’t be “minimum wage” laws in the first place. In a truly free society with a truly free market, government should not be allowed to dictate to business owners what they must pay employees. The market, if left alone by nanny state liberals, will take care of things like wages.
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