It’s so simple it hurts that everyone doesn’t see it. When you raise the price of something, people will buy less of it. When the thing you raised the price on is a worker’s wage, then some workers will lose their jobs. Obama has proposed we raise the minimum wage from $7.25 to $9.00 per hour. That’s a 24% increase in the minimum wage, which is pretty significant.
If the price of coffee goes up significantly, I will either buy less of it or switch to something cheaper. When the government interferes with the free markets by establishing a minimum wage law, employers will either buy less hours or ‘switch to something cheaper’. The video above shows in an easy-to-understand manner that a required minimum wage of $9 means that employers will not employ people who are not worth $9 per hour. If the employer runs a fast-food restaurant, he may simply switch to a nearly automatic French fry maker that requires almost no human input.
What’s so complicated about understanding that? The price of labor goes up and people lose their jobs. Could the bleeding hearts in DC really want this? Sure, more government dependence means more votes in the next election. I wonder if these libs know that the original intent of the minimum wages laws was to force black workers to lose their jobs to white workers?
Follow Gail on Twitter: @AcctgProfTX
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