Minimum Wage Increase : A Zero-Sum Game
Let me start by saying that I don't advocate the minimum wage law in the least. It is essentially a unemployment law and a celing for employment not a floor. But avoiding that discussion, the coming increase in the minimum wage can do no good whatsoever.
At a time when we are in what I think will evolve or devolve into something far worse than the great depression, the so called "political elites" plan to tax capital at a higher rate while also increasing those making minimum wage. All this will do is force employers to cut back on the employees they higher. They have no other choice as their businesses struggle they are required by law to pay their lowest paid employees a great amount which they can only recoup the further decline to their bottom line by firing the same calibur employees. This will cause a rise in unemployment to the degree that the tax on capital rises and the increase in the minimum wage.
Now how does that make any sense? Taxing capital at a higer rate while in a modern day depression, forcing business owners to payed their lowest skilled labor a higher wage at a time where unemployment is going through the roof and showing no signs of abating. I mean losing 350k jobs a month as opposed to the projected 400k jobs is not a sign of increasing unemplyment slowing..
Come on people - What planet are the lawmakers living on?