To The Daily Sun,
Democrats are demanding an increase in the minimum wage. They just can't decide how much to raise it. Our president thinks $10.10 an hour would be just about right. Fast food workers think $15 an hour is just about right. Well, why not $25 an hour or even $50 an hour. If we make it $100 an hour then no one will need welfare.
So, all you small- and medium-sized-business owners, the backbone of our economy, what are you waiting for? What's that you say? There would be no profit and hence no incentive to stay in business at the $10 to $15 an hour starting pay. Businesses would close en masse and unemployment would soar. At $10.10 per hour, hiring will stagnate which will hurt young folks trying to get into the workforce for the first time. Approximately 30 percent of minimum wage workers are under the age of 30.
Please check out these realities for the young among us according to Nick Pappas, N.H. director for Generation Opportunity. (1) The vast majority of minimum wage earners in our state are young citizens working part-time or entry-level jobs to make some extra cash after school or just to gain work experience. (2) A minimum wage hike only serves to raise the barriers to entry. (3) Youth unemployment is nearly 16 percent and has remained at historic highs for the past five years. Raising the minimum wage will only exacerbate the plight of the young who are already subsidizing the elderly through Social Security and now Obamacare. Raising the minimum wage so drastically and so quickly will hurt the poor and low-skilled workers the most. Automation will accelerate, causing fewer available jobs. The price of some goods will increase, hurting the poorest among us.
An executive research firm, The Lucas Group recent report explains that the 40 percent proposed wage increase would slow business expansion, cause hiring freezes and even cause some business closures. The service industry would be especially hard hit. The Congressional Budget Office reports that raising the minimum wage to $10.10 could kill up to 1 million jobs.
Fred Wszolek boils down the real winners in this "cycle of minimum wage economics." Higher minimum wages equals higher union dues. Some jobs disappear while money pours into the coffers of big labor with which to fund Democrats running for re-election. So Fred says that there are indeed winners — politicians in Washington and their big labor allies.
History has shown that when government gets out of the way, the private sector engine of free enterprise roars into action. President Obama, with no real-world experience, thinks he knows better. With as much expertise as Wile E. Coyote setting an ACME trap for the roadrunners, he shuns Congress, pounds his chest and commands, "America does not stand still — and neither will I. So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that's what I'm going to do."
The imperialist president has spoken while the economy continues to sag and the labor participation rate is now the lowest since 1978. Why some still believe Obama actually likes the country he was elected to preserve is the mystery of the decade. He is making sure we are no more exceptional than any other country. The liberal good intentions of the minimum wage hike, especially if enacted in such a reckless and capricious manner, will add just one more nail to the coffin of our president's failed five year jobs recovery.
- Category: Letters
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