Erin Shannon (Washington Policy Center) joins John to discuss how minimum wage increases eliminate jobs for the lowest skilled workers.http://www.LibertyPen.com
The Lexington Libertarian will attempt to disperse some economic sense here, some blowback to the claptrap Socialism of Bernie Sanders Minimum wages might sound nice but ask yourself where the money comes from? The employer’s cost of business has been drastically increased by mandated that he pay workers more wages. He can raise prices, cut hours, cut benefits, cut out jobs entirely or not hire more workers in the future to cover his costs. But you can no more mandate a business to pay workers more money in wages without consequences to that business than you can order a baker to charge $1 for a loaf of bread that costs him $2 to produce. Mandating increased costs on an employer means that payment of those costs have to come from somewhere and it certainly isn’t the government that is making up the difference to the employer here.
THE PLAN FACT IS THAT INCREASING MINIMUM WAGES PUTS PEOPLE OUT OF WORK
Ask yourself, if minimum wages work so well why not make them $100 per hour. And if we did that even better we could mandate $500 per hour and there would no longer be any poor people left. Everybody would be rich. REALLY? Do you really believe that?
“Every time we raise the minimum wage, youth unemployment increases. The 16 to 19 demographic had an unemployment rate of 45% in 2011, compared to 26% in the year 2000. That staggering number represents lost tax revenue, increased social spending and, most importantly, lost opportunity. One of two things happen when the minimum wage goes up: a business passes the cost on to consumers, or it sheds the least productive employees — like the baggers in supermarkets or kitchen help, and busboys in restaurants.”