Four Excuses Why Minimum Wage Should Not be Raised

~ Rant ~

Whenever I read arguments against increasing the minimum wage to a livable wage, those arguments usually trot out four, general, excuses for slave wages as justification.

The following is a link to an article from SHTFplan.com that is an example.

I've brought over the four excuses for slave wages that I'm referring to, from that article, and then I've gone through them, one-by-one, with my comments written below each excuse for slave wages.

From SHTFplan.com, Mac Slavo: "What Prices Look Like Before and After A Mandatory Minimum Wage Increase"
https://www.shtfplan.com/headline-news/what-prices-look-like-before-and-after-a-mandatory-minimum-wage-increase_01042015

"1) Businesses will be forced to raise prices, which will essentially wipe out the benefit of any wage increase because while employees may make more money they’re now paying more for the same goods.
2) Businesses will have to cut back hours. If you force a business to pay 50% more per hour per employee and consider how much money that is, many will have no choice but to cut back hours, which effectively leaves the employee making the same amount of money.
3) Businesses will have to let people go. It’s simple. If their revenue stays the same but their labor costs go up a business has no choice but to consolidate its work force."
"One unforeseen problem is that many of the workers who will see a wage increase may be pushed into a higher income bracket causing them to lose access to public services like Electronic Benefits Transfer or other income assistance programs."

Ok, I'm going to take these on one at a time.

"1) Businesses will be forced to raise prices, which will essentially wipe out the benefit of any wage increase because while employees may make more money they’re now paying more for the same goods."

So what?

Prices have been rapidly rising while wages have stagnated for over 30 years now.

Prices will continue to rise and outpace wages, irregardless of an increase in minimum wage, because of inflation created by excessive money printing by the Federal Reserve, the out-of-control spending of the government, and the out-right greed of I've-got-mine-screw-you corporations and businesses.

"2) Businesses will have to cut back hours. If you force a business to pay 50% more per hour per employee and consider how much money that is, many will have no choice but to cut back hours, which effectively leaves the employee making the same amount of money."

Just what is it that the business are doing during those "cut back" hours that employees aren't there to produce the products and services of that business?

If a business cuts back it's minimum-wage employees hours, who's going to be there to do the work?

Are the businesses going to hire more minimum-wage workers, who work even less hours, to try to get the same amount of work done?

The wages are dollars per hour.

If the business need eight hours of work done, it's still eight hours at the same wage no matter if it's one employee working eight hours or eight employees working one hour each.

Yup. Eight people, working one hour each, to do the same eight-hour job that one person used to do.

Remember, the businesses are threatening to cut back hours but those businesses still need the work done so they are going to have to hire more part-time employees, working fewer hours, to get the same job done.

That means the businesses are still going to have to pay eight hours worth of wages, no matter how many hours they cut back from the employees.

And the more employees a business hires means the business has to cover more training and administrative costs.

Don't forget about Obamacare. That will limit how many employees a business will hire.

So, if a business cuts back employee hours but doesn't hire more employees to get the job done, then the business will have no choice but to cut back its hours of operation which effectively leaves the employer making less than if they had paid their employees a livable wage.

Ohhh. Right. Those businesses will just buy lots of robots to replace the employees.

Lots of expensive robots that will require the business to take out loans to be able buy those robots. Loans that will increase the overhead and therefor increase prices.

And since those robots replaced so many employees there will be fewer paychecks circulating through the community which will result in fewer customers to pay those higher prices to cover the loans taken out to buy those robots.

When businesses can't afford to pay off their loans they go out of business.

"3) Businesses will have to let people go. It’s simple. If their revenue stays the same but their labor costs go up a business has no choice but to consolidate its work force."

Again, so what?

Businesses today treat employees like disposable garbage and "let people go" at the drop of a hat.

Since the crash of 2008 businesses have let so many people go that those businesses are operating at or near skeleton staffing (they've already consolidated). That is why the labor participation rate is at record lows for so long. That is why chronic unemployment has lasted so long.

"But.. but.. the government says unemployment is 6%."

The way the government tallies unemployment figures is to not count the long-time unemployed people for political convenience.

Here's a hint. The Labor Participation Rate, as of January 5, 2015, pegs roughly 37 percent of able-bodied, working-age (16 to 64 years of age) people in the US as not having jobs. (Looking at the chart in the link, 100% minus 63 percent, equals 37 percent. A big difference from the 6% the government likes to trumpet.)

Thirty-seven percent unemployment.

37% unemployment!

There are roughly 300 million people in the US. Thirty-seven percent of 300 million is 111 million...  111 million unemployed, able-bodied workers.

Businesses have already been "letting people go" by the many tens of millions even at the current, sub-living standard, minimum wage.

Businesses will continue to "let people go" by the millions whether the minimum wage is increased or not.

"One unforeseen problem is that many of the workers who will see a wage increase may be pushed into a higher income bracket causing them to lose access to public services like Electronic Benefits Transfer or other income assistance programs."

What!?

You mean if minimum wage employees are paid more they may not need EBT cards and other forms of welfare?

Those employees might actually be able to support themselves!?

Imagine that. People getting off of welfare because they are able to support themselves with livable wages.

Oh. The. Horror.

We are told that there are too many people on welfare in America yet it seems that is exactly the way businesses and government want to keep things.



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