The American election cycle is on full speed. At least at the Democratic side. The candidates are all pushing towards a higher minimum wage. The jobs that are not paying enough to survive are not the jobs the politicians wish to have.
As you know I’m a strong opponent against the minimum wage. This is due to the destruction it does for the economy, the workforce and those who are in need.
We can already witness the destruction the minimum wage hikes are having upon the economy. Just look at what’s happening in New York and California. 2 States that are well known for being very progressive.
Those 2 states have a minimum wage of $ 15 an hour. So the result is that in New York the number of jobs in the full-service restaurant sector is down with 1.8%. This is not a high amount. But during the financial crisis, this sector was surviving and hiring. So when they are letting people go you know something terrible is happening.
In California are we seeing exactly the same happening? The number of jobs the lower segments of the job market. So those who need it the most are affected the most. Really bad policies.
The big problem is that businesses with a low-profit margin are forced to lay off staff. One of the problems for society is that those businesses traditionally also offer entry-level jobs.
When you think about this than we see how problematic this is for society. After all, is more jobs exactly what a society needs. Jobs you can start out with and then make a career.
It is very interesting to see that we are not having a debate about the minimum wage. This is, off course, due to the fact that we already have a minimum wage. When it is increased people take it for granted. They get more money and so they can increase the living standards.
So let’s have a look at why life is getting more expensive. This is due to the terrible monetary policies we are witnessing. Not only nowadays, but from the moment governments were capable to mint currency the inflate it. This means that you need more of them to buy the same things.
So why not abolish the minimum wage and simply end the reason the world is needing a minimum wage.