Discussion in 'Economy' started by Kevin_Kennedy, Jul 13, 2009.
Minimum Wage, Maximum Stupidity by Peter Schiff
Another odd effect of raising the minimum wage that most people ignore, the companies have to increase their prices by the same percentage to cover it ... thus completely negating the effect of increasing the minimum wage in the first place.
In some cases they'll raise prices and in others they'll let people go or won't hire people in the first place.
True ... it's always baffled me that people don't realize how stupid minimum wage was in the first place. Every time it gets raised I just pay attention to the fact that I will have to start paying more for everything, my budget never changes, I still can only afford what I did before the wage hike ... at least when I was working at an hourly wage job.
I think people do realize it, it's just too simple to miss. But they either egotistically believe they've found a way around basic economic principles, or they have a motive other than maintaining a functioning economy.
For those who can't seem to grasp it I simply ask them why we don't make the minimum wage $100/hour because the same principle applies.
I saw an old friend today who has 2 restaurants in Washington. Thanks to increased taxes, she is selling one of them (after shutting it down and firing the employees) and when min wage increases, she's paring down the number of employees at the remaining, smaller business.
Another example of government regulation killing small business and supporting a few major corporations only.
Yes, everyone can plainly see how small businesses all went broke since minimum wage was enacted.
No they didnt all go broke. But in the state being referred too. For a couple of years they doubled the small business failure rate of the nation. All due only to dem policy.
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