The latest code word circulating in the Washington, D.C., cesspool is “income inequality.”
Income inequality is altruistic doublethink. It is designed by the elites who love to use class warfare and envy to distract the masses from the truth of the economic malaise they have created through profligate spending, money printing and the fascist system.
In order to alleviate “income inequality,” President Barack Obama and his progressive cohorts want to raise the Federal minimum wage from the current $7.25 to $10.10 per hour. Their logic, they say, is that raising the minimum wage will result in an increase in annual wages for those working at entry-level jobs. Some even maintain that raising the minimum wage will result in increased employment.
But a minimum wage law is not an employment law. It is an unemployment law.
The vast majority of economic studies show that increases in the minimum wage lead to fewer employment opportunities for the least-skilled workers. A recent study by Cornell University’s labor relations journal bears this out.
This new analysis from economists at Miami and Trinity University — reported on by Minimumwage.com — calls the idea to raise the minimum wage a 1 million-job disaster. The study uses updated Census Bureau data from 2012 and 2013 to provide State-level estimates on the number of jobs that would be lost as a result of a $10.10 wage hike. Across all 50 States, the updated analysis shows that at least 360,000 jobs — and as many as 1,084,000 jobs — would be lost.
Employers cannot afford to pay a worker $10 per hour to provide $6 per hour (or less) of production. So they will not do so. They will not employ low-skilled workers at above their level of ability. They will replace low-skilled workers with automation or higher-skilled workers.
A minimum wage is the eighth plank of Communism. It is a collectivist idea that all workers are equal and should be paid the same, regardless of the task they perform. But workers perform different tasks and have different skill levels, different abilities, different levels of intelligence and different levels of education. To attempt to make everyone “equal” is fallacious collectivist nonsense.
A minimum wage law is contrary to liberty. It prohibits two parties from entering into a mutually beneficial contract. It thereby prohibits low-skilled workers from working at all. It criminalizes employers who would hire someone to work below a level set nebulously by a thinknocrat.
Nearly 60 percent of the working-age poor don’t even have a job. They don’t need a raise; they need a job. And they don’t need more impediments to finding one.