There’s talk of raising the federal minimum wage to $15.00 per hour. The general rule of thumb is that every action has an opposite reaction.
Raising the minimum wage sounds good but low skilled workers are often the early victims. If you subscribe to the theory that this would punish those evil corporations and businesses, guess again. Those jobs held by low skill workers will be replaced because of the basic business mentality of “why pay $15.00 per hour for this low skilled worker when I can get a more skilled one for the same money”. Picture the guy at McDonalds that empties trash, cleans tables and miscellaneous work, he is at a little slow at his work and he likes to chit chat with people. At $15 his employee habits are less tolerated, and why not replace him with a person who is more efficient at completing the job and once done you can put him doing other tasks.
The cost of goods sold will go up along with cuts in manpower to offset the mandate. Whatever you think your doing in productivity you will need to double it. That will be the expectation. Expect changes to benefits if any and that includes time off like sick or vacation days.
Big companies will survive but they won’t take it lying down. If it results in manpower shortages customer will experience more waiting in line.
You can come up with your own scenarios of possibilities but businesses WILL make adjustments to the way they do business. A minimum wage hike from 7.25 to 15.00 is significant. So if you are currently making minimum wage, you might want to re-consider how you approach your job if your unskilled because your about to replaced by someone more skilled, less drama, more efficient and can work circles around you.
Every current minimum wage worker now should expect that it will become a competitive playing field and they are in danger of being replaced, moreso than ever before.
That small number of current minimum wage workers whose wage is offset by tips should not expect “gratuities” to continue. If your a waitress that is not covered under any new minimum wage law BUT work in a business where there are workers who are you will still be impacted by unintended consequences.
Who benefits more? The government does. The very people pushing for the rate hike. It strips more taxes from business and the worker to fuel more government run programs. The general rule of thumb is to take your hourly wage and double it, and that’s what it costs an employer to employ you, with matching taxes, along with other costs such as benefits which will be pushed after the minimum wage hike is accomplished. The minimum wage worker will now be able to pay for a health care program or the government will confiscate taxes to pay for their government run health care program.
We won’t know for sure what the end game is until it gets here and you can bet increasing minimum wage is NOT the end game. Its a step, with government benefiting more than the worker.
Democrats do not care about the worker, they lean on propaganda to pretend they do. They are trying to eliminate the middle class, why would they be trying to push more people into it?
If they cared about the average worker, they would be pushing for less government restrictions, less taxes, less regulations and the things that prevent private sector job growth.
If government really wanted to help minimum wage workers, take out for social security and nothing else but they NEVER mention that.
The push for minimum wage is FOR THE BENEFIT OF THE DEMOCRATS NOT THE WORKER, but the propaganda sounds so good. In the end, the Democrats are the big winner and business is the loser. When the employee looks at their first check, they will see a little morsel and be thankful but when they turn around to spend it, the price of everything has gone up and they are no better off today than they were yesterday. But the wealthy Democrats are enriched by it for their programs and they are the hero’s for getting you that wage increase. If you lose your job its okay, because there is a program waiting for you to enslave you and make you dependent on the Democrats.
The Bureau of Labor Statistics put the population of minimum wage workers at 1.7 Million that’s a number we need to measure again a couple of years after it goes into effect, if it ever does.