The House of Representatives just voted yes in favor of raising the federal minimum wage to $15 by 2025. This has a direct impact the economy. Is this good? Is this bad? Are we not see all sides here? Or is this just smoke and mirrors?
We are going to tackle the minimum wage issue with facts, figures, economic laws, and logic rather than, what we usually get - emotional calls for the wage rate increase using illogical arguments that are in direct opposition to economic law.
I want to start with a quote by Thomas Sowell from his epic book, Basic Economics that really lays the foundation for this discussion. On page 237 he said:
“By the simplest and most basic economics, a price artificially raised tends to cause more to be supplied and less to be demanded than when prices are left to be determined by supply and demand in a free market. The result is a surplus, whether the price that is set artificially high is that of farm produce or labor.”
In which I discuss the reasons that the minimum wage needs to be abolished rather than ratcheted up to $15/hr. Actual video starts at 0:50.
The movement for a $15/hr minimum wage has received a lot of attention. Amazon recently "enacted a company-wide $15/hr minimum wage" which sparked a discussion full of people sorely lacking in common sense, math skills, and basic critical/analytical thinking. It also resulted in Whole Foods (a subsidiary of Amazon) employees that were already on the bottom of their pay scale taking a pay cut through reduced hours despite a higher nominal wage.
A look into the $15/hr minimum wage and the REAL impacts of the proposed hike. As with most progressive policies, very little thought is given to the TRUE cost. Just a utopian vision of a world where if it feels good it must be good while turning a blind eye to the dystopian reality of third-world-like conditions amidst growing unemployment and homelessness in some of the once most prosperous states in the union. As with all of my videos of you’d like to see links to my sources they are all attached to my videos on YouTube. Please remember to LIKE, SHARE, and SUBSCRIBE.
A minimum wage is a law where the government forces businesses to hire people at a rate they otherwise wouldn’t offer. It does nothing but set a price floor above the market rate that means it won’t ever work. Minimum wages are bad economics and bad policy, they don’t work and shouldn’t be used. In this video I respond to two things, an article discussing a job ad for a nanny (au pair) and ACTU Secretary Sally McMannus’ recent press conference regarding the Fair Work Commission “only” raising the minimum wage by 59 cents an hour. Her arguments are full of lies and economic fallacies so it was an easy video to respond to, however listening to this woman speak was hard work. Unions either don’t understand economics or they are willing to flat out lie in order to push their agenda. Either way they aren’t worth listening to.
Still, it’s fun to debunk them, I hope you enjoy it.