Aug 8, 2015

The Best Cartoon on Minimum Wage EVER

By on Saturday, August 08, 2015

Union hacks and leftists across the country have been screaming for fast food workers to be paid $15/hour.
These tools are probably being paid less than that to push restaurants and legislators to raise the wage of unskilled workers to an amount that makes absolutely no sense.

That doesn’t stop them of course because they are hell bent on killing jobs and the economy and possibly getting new members as well (for unions that’s really the only bottom line they care about).
There’s a myth that’s been going around they themselves often use that has been completed obliterated by economists.
It is wrong to assume that raising the minimum wage for fast food workers to $15 an hour will only raise the restaurant’s prices by 4 percent, according to multiple economists.
The 4 percent figure came from a study by Purdue University economists Richard Ghiselli and Jing Ma. The study and presumed effects on fast food prices have made multiple rounds in cyberspace. The only problem is the numbers are wrong, according to others doing the math.
“There could be quite large shares of workers affected, and research doesn’t have a lot to say about that. We can’t assume that because the proposal is out of sample, it’s going to blow up. But we have to be less certain about the outcome,” said Jared Bernstein, a former White House economist now at the Center on Budget and Policy Priorities. The Center typically favors higher minimum wages.
Other research shows that raising the minimum wage would, in fact, raise fast food prices by at least 22 percent. Diana Furchtgott-Roth, Senior Fellow and Director of the Manhattan Institute, presented her testimony on Economic Policies for the 21st Century to the New York Wage Board on June 22, 2015, in response to the state considering raising the minimum wage. Roth said substituting direct labor, which could include automation, would lead to a price increase of around 15 percent. However, prices could go much higher than that.
“To assume that prices would not increase with a 66 percent labor price hike is economic naïveté,” Roth said in her submitted testimony.
In reality, forget the math, it’s just common sense.

You cannot increase wages of workers by 50% or more and expect not to take a hit to your bottom line. Businesses are in business to make money.
You cannot increase the wages of unskilled workers and expect new and upcoming unskilled workers not to be shafted.
When the government mandates an increase of wages, they hurt the very people they pretend they want to help.
Not only that but they hurt the market as well and it has a domino effect on the economy. Of course, they can’t be so incredibly ignorant as to not know this.
Killing jobs and the economy to force more people into government dependency is the leftist way.


Post a Comment