by James Buchanan
A recent news article reports “The nation’s second-largest city voted Tuesday to increase its minimum wage from $9 an hour to $15 an hour by 2020, in what is perhaps the most significant victory so far for labor groups and their allies who are engaged in a national push to raise the minimum wage.”
“The increase, which the City Council passed in a 14-to-1 vote, comes as workers across the country are rallying for higher wages…”
“The effect is likely to be particularly strong in Los Angeles, where, according to some estimates, almost 50 percent of the city’s work force earns less than $15 an hour. Under the plan approved Tuesday, the minimum wage will rise over five years.”
Holy cow, almost fifty percent of people in Los Angeles make less than $15 per hour. You can’t just raise the wages of half the people in the city regardless of market forces!!! But there are 14 idiot Marxists on the L.A. city council who think you can.
Let’s say they do raise the minimum wage from $9 to $15 per hour, all the businesses (that don’t go bankrupt) that employ these people will have to jack up their prices.
So let’s say Juan Valdez’s income goes from $9 per hour to $15 per hour, but then the price of a hair cut goes from $9 to $15, the price of fast food goes from $9 to $15 per meal and the price of dozens of other things jumps up 67%. Congratulations, Communism gets trumped by Capitalism yet again. Meanwhile, all the retired people on a fixed income get screwed as prices skyrocket to counterbalance the government-imposed minimum wage.
The same liberal politicians, who want the minimum wage raised to $15 per hour are responsible for gasoline taxes that have pushed up the cost of gas to about four dollars per gallon in California.
How about eliminating the gas taxes and cutting the sales tax in half? Then working poor people would have a much easier time and you wouldn’t have to go trampling on the rights of business owners to make their own decisions.
The best way to raise workers’ wages in America would be to:
1). Deport all the illegal aliens so that the labor field is no longer flooded.
2). Cancel all H1B visas so that high tech workers aren’t having their salaries undercut by Third Worlders, who are frequently incompetent if not total frauds.
Sadly, the few people who will condemn this minimum wage increase as a bad idea will have their voices drowned out by the economic illiterates and the airheads on the Cable News networks.
Historian Alexander Tyler predicted “A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury.”
Well, voting for politicians who force businesses to give them pay raises regardless of market forces is just as bad, and now we’re counting down to economic disaster.