By now most have heard that Biden will raise the minimum wage to $15 per hour. Even Trump said he would consider it when asked at the debate. Trump said he did prefer to leave it to the states. I look at this from having been a minimum wage earner and as an employer.
Back in the 1970’s, I worked for minimum wage. It was only $2 per hour back then. At the same time, a new car cost around $2,500 to $3,500. A loaf of bread was around 28 cents and etc. That simply speaks to inflation which is one thing raising the minimum wage will do. But, there is much more to consider. Please don’t get me wrong. I’d love to see everyone earn a good living. The question is how we get there.
The biggest problem we face right now is getting our economy back on track. With many businesses going under how does anyone expect them to be able to pay more? If you want to drive small businesses out of business permanently, by all means, raise the minimum wage.
The next obvious thing is $15 per hour in New York City is not going to go as far as it would in a rural or suburban area. There should not be a blanket minimum wage. If they must do this then maybe they should prorate it using something like the military cost of living charts. That would be fairer.
What about people already making $15 per hour or more. Shouldn’t their wages go up to keep things on par? That means everyone gets at least a $7 per hour increase. How would that work from the business owner’s point of view?
Money doesn’t appear out of thin air no matter what Biden, AOC, and their kind think. Businesses will simply have to raise their rates on everything to pay the higher wage. That results in a zero gain for the employee over time. Sure, the $15 per hour wage hike would make them feel better in the short term. I will guarantee over time it will all even out when the cost of goods and services goes up so businesses can pay the higher wage.
What happens to the elderly, retired, and people on disability? Their pay is more or less fixed. They will not be getting a pay raise and the cost of goods and service increase will hurt them the most.
I know the left hates to admit it but Trump originally had it right. A rising tide lifts all boats. Wages naturally rose during his administration before the China Flu hit.