Democrats across America have pushed a wage hike for years.
They are trying to coerce private businesses into paying their low-skilled workers more money. In many heavily-liberal regions, the plan worked. Small businesses must pay their workers more. In New York, restaurants have to pay their staff a whopping $15/hour.
Now, this is happening.
Liberals push for minimum wage hikes just to win votes. Like all their other policies, they never think about the consequences of such a demand. Companies aren’t like the government. They can’t just increase taxes in order to pay their bills. Businesses need to earn a profit to stay open. That means they have to be smart with their money.
A bad month can mean they have to close their doors. Fluctuations in the economy, changes in shopping patterns, and shifts in their community can mean disaster for a store or restaurant. Unless a business is doing gang busters all the time, they might not be able to keep the lights on.
Now add to that a Democratic-run government demanding these businesses pay their entry-level staff more. It spells doom for countless companies.
But Democrats never think that far ahead. They are just desperate for votes. They know that many people will support them—if they promised a higher minimum wage. These voters are thinking things through, either. They just like the idea of getting more money—at a job that doesn’t warrant it.
On the West Coast, they have pushed wage hikes for a long time. Now, in New York City, a law passed a few years ago has gone into full effect. Restaurants have to pay their entry level staff at least $15/hour.
Guess what happened? There has been a massive drop in employment across the state.
Following the implementation of that recommendation, New York City showed the greatest plunge in restaurant jobs in almost 20 years…
A survey published near the end of 2018 found “76.50% of full service restaurant respondents reduced employee hours, and 36.30% eliminated jobs in 2018 … 75% of limited service restaurant respondents report that they will reduce employee hours, and 53.10% will eliminate jobs in 2019 as a result of mandated wage increases. [Source: Daily Wire]
Big surprise, right? Companies can’t magically pull money out of the air. When the government forces them to pay their staff more, only two things can happen (if they don’t want to go out of business). Either the company raises prices—hurting consumers (and potentially driving them away) or they fire staff to compensate.
And even with an increase in prices, they still might not have enough cash to pay their staff. Even after laying off staff, they might not survive. You can’t just demand companies pay their people more and think everything will be okay.
Government pushing wage hikes is one of the worst socialist ideas ever foisted onto the country. Democrats—and their voters—just assume companies can pay higher salaries. “They’re already super rich, right? What’s a few more dollars an hour?”
That kind of thinking proves how dumb Democrats are. Socialists push the idea that the rich have an endless store of cash. That they’re just cruelly holding it back from the poor. So, it’s up to the government to force them to open their wallets to pay their least-skilled staff more.
Yet that’s never the case. Every city that’s pushed for wage hikes suffered a drop in jobs.
August 2016, reports surfaced that the raise in the minimum wage had hurt employees in Seattle…
In April 2017, the Harvard Business School, released a study that examined restaurants in the San Francisco Bay Area between 2008 and 2016 titled, “Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit.” The study posited that a $1 increase in the minimum wage led to a roughly 14% increase in the likelihood of a median 3.5 star restaurant closing. [Source: Daily Wire]
Companies don’t have an endless supply of money. They shouldn’t be forced into paying higher wages for entry level positions. Instead, workers should try to get promoted and seek better opportunities for better pay.
That’s just common sense. But when have Democrats ever used that?