Simple economics used to be about supply and demand. If the demand increased the supply decreased and prices were affected accordingly. If demand decreased, supply would increase. In other words, businesses and costs would balance out on their own due to economics.
The problem with socialists like Bernie Sanders and Hillary Clinton, they believe if the government forces businesses to pay increased wages that our economy will get better and people will have a better ‘livable’ wage. Sadly, they are NOT taking in all factors.
Bernie and Hillary could learn a thing or two from a cartoon that is going viral recently about the minimum wage debate.
H/T Conservative Tribune:
A hilarious cartoon from A.F. Branco in 2013 may be old, but the meaning behind the cartoon drawing is still applicable today.
“12 bucks for a crappy lil’ hamburger,” a man says while ordering at a fast food restaurant in the cartoon.
“Look on the bright side, now I’m getting $15 an hour,” says a clueless fast food worker sporting a huge grin on his face.
Presumably understanding economics, another worker at the restaurant is seen taking his apron off and leaving as he was let go.
“What bright side? I just got laid off,” the other worker says.
Here’s the cartoon:
Legendary conservative columnist Thomas Sowell published an opinion piece in the New York Post in 2013 that remains one of the most articulate and succinct perspectives on why raising the federal minimum wage would be detrimental to our economy.
“Inexperience is often the problem. Only about two percent of Americans over the age of 24 earned the minimum wage,” Sowell wrote.
“Advocates of minimum wage laws usually base their support of such laws on their estimate of how much a worker ‘needs’ in order to have ‘a living wage’ — or on some other criterion that pays little or no attention to the worker’s skill level, experience or general productivity. So it is hardly surprising that minimum wage laws set wages that price many a young worker out of a job,” Sowell explained.
The federal minimum wage has been $7.25 per hour since 2009. Basic economics tell us that if Democrats were to get their way and the minimum wage rose to $15 per hour, businesses would be forced to lay off workers to account for the increase in their payroll.
As Sanders, Clinton, and many others in the Democratic push for this asinine policy, Americans should understand how catastrophic that would be for our economy as it would diminish jobs, businesses, and stunt economic growth.
What’s the real answer? Lower taxes and stop or reduce the number of jobs being outsourced to China, Japan or other countries.
When Democrats pass laws for minimum wage increases, they are just forcing companies like McDonalds or Home Depot to automate. They are forcing businesses to close stores, because they can’t handle the increase in wages for employees and still make a profit.
When will Democrats learn? Their stupidity is causing their supporters to lose jobs and salaries. Whenever Democrats vote to increase minimum wages, not only are hours lost or reduced for those still employed, but for others their jobs are lost to automation. That’s right. As is the case recently in Seattle, when minimum wage was increased by $1 that equated to decine in automatable jobs by at least a full percentage point.
Stupid is as stupid does.