Obama wants to ramp up the minimum wage to 9 USD/Hour. Apparently this will make everyone better off. Everyone knows if you increase the price of something you create for demand for that item.
Of course this is complete garbage.
If you increase the cost of something you reduce the demand for it.
If you increase the cost of labour there will be less demand for it. Simple economics that is taught to high school children.
In Obama’s world, increasing the cost of labour will not decrease demand for labour and more than that, it will create wealth.
But I think I have said enough. I don’t want to give such an idiotic idea any more oxygen.
The minimum wage always was a get-out-of-jail free card for governments.
Low wages and high unemployment are a symptom of a bad economic environment.
The minimum wage allows government to rid themselves of the responsibility of the conditions they have created.
The minimum wage gives politicians good sound bites and it makes them look caring.
From a boots on the ground perspective it makes people more dependent on government. Either you keep your job and get a small wage increase or you lose your job and you become dependent on a government handout.
Whichever way you cut it increasing the minimum wage is a no-lose option for government.
The minimum wage makes government look good, it increases government control by making people dependent and it passes the economic burden of a bad economic environment onto the private sector.
If I were a politician I would love the minimum wage.
There is only one way to expose the negative effects of increasing the minimum wage and that is with education.
I hope I have broken down the minimum wage argument into simple enough terms for everyone to understand that increasing the minimum wage makes everyone poorer and reduces individual liberties by making more people dependent on the decisions of government.