My Take on Why Raising the Minimum Wage is a Bad Idea:
Raising the minimum wage is a terrible idea. It is something that only someone as idiotic and imbued with socialist ideology as Bernie Sanders or AOC could come up with.
The minimum wage as it currently stands is an example of an awful government initiative that has hurt both workers and consumers. Raising the minimum wage to $15 an hour would be even worse. In fact, it would devastate the economy.
When socialist politicians such as Bernie Sanders, AOC, or Elizabeth Warren bring up raising the minimum wage, it’s as if they have no idea that there will be consequences for doing so.
The Consequences of Raising the Minimum Wage:
Despite what the avowed socialists in our government might say, raising the minimum wage would have negative effects. Many negative effects. As I discussed in my guest post for New Right Media, it would lead to a rapid increase in automation. While that automation would be good for companies and their shareholders, it would be bad for low-skilled workers; the workers that Sanders and Warren supposedly want to help.
Automation Caused by Minimum Wage:
That automation and resulting job loss would have multiple down the line effects. Some would be positive, and others would be disastrously negative.
The Positives of Automation:
On the positive side, it would probably boost stock returns for those who understand the important of saving and investing. It would also make the consumer’s experience smoother and faster in many circumstances. Finally, automation would make businesses more efficient, and thus better able to compete with foreign competitors that employ cheap labor. Those would be the positive side effects.
The Negatives of Automation:
However, automation caused by raising the minimum wage would have many negative side effects, at least initially. Some of those could prove disastrous.
One especially negative effect would be unemployed workers turning to dangerously addictive drugs such as opioids. That’s not even a theoretical problem, it’s currently happening. As described in a recent guest review of Dreamland: The True Tale of America’s Opioid Epidemic, workers left unemployed by automation and regulation are turning to opiates in droves. That opioid epidemic has placed a serious strain on society.
Another problem is that automation caused by raising the minimum wage would be sudden and devastating. Whereas naturally occurring automation generally happens naturally and thus semi-slowly, automation caused by a sudden doubling of hourly pay would force businesses to rapidly automate and then layoff massive numbers of workers.
Raising the minimum wage would hurt the very workers it is supposed to help, as I discussed in my “The Minimum Wage Debate” post.
Increased Prices and Inflation:
The side effect of raising the minimum wage that would affect everyone in society is increased prices. As the meme above suggests, that price raise would be purely because of the sudden, dramatic increase in worker pay.
One consequence of dramatically increasing worker pay would be inflation. Just about any economist will tell you that when salaries dramatically rise, so do prices. Businesses a) know people are making more and thus can pay more for a given product and b) are having to pay their workers more, so they pass that cost increase on to consumers.
The result of inflation is that once it has been factors in, workers are making no more than they used to; they are no better off. Businesses will simply raise the price for any given item and the same people who were struggling beforehand will continue to struggle. The only difference will be that many workers were laid off in the process.
Due to recent government interest in raising the minimum wage to $15 and hour, the Congressional Budget Office (CBO) looked at what the effects of raising the minimum wage to $15 an hour would be and released that report on the effects of a $15 an hour minimum wage on job loss.
The findings were astounding. The CBO found that although some workers would experience a wage increase, somewhere between 1.3 million and 4 million workers would be laid off. At best, the net effect would be neutral. At worst, raising the minimum wage would be devastatingly terrible.
Increasing the minimum wage to $15 an hour is an awful idea. It would cause mass unemployment due to increased costs. It would lead to inflation, eroding the wealth of everyday Americans. It would further inflame the opioid epidemic and cause further societal strain. Few would benefit in any tangible way.
Don’t let those delusional, socialist politicians raise the minimum wage!
By: Gen Z Conservative