Those who crusade for a $15 minimum wage would be laughable if they weren’t so dangerous. Pandering to the ignorant masses and the idiots who believe that more money in a paycheck means more take-home wealth, many on the left pretend that increasing minimum wages will create prosperity.
It would destroy it.
Nick Hanauer is a billionaire venture capitalist and a devout liberal who works for liberal causes. Among them, Hanauer supports an increase in minimum wage to $15…
…For everybody else. When it comes time for him to cut a check, Hanauer is actually quite practical…
Though Hanauer proudly fights for $15 an hour minimum wages, his family business, the Pacific Coast Feather Company, offers significantly-lower wages.
“Company sources say Pacific Coast Feather Co. will hire 110 workers, and pay will range from $7.50 an hour for unskilled, entry-level jobs to more than $11 an hour for higher-skilled jobs,” the Gaston Gazette reported. “Pacific Coast Feather Co. will participate in a state Commerce program that requires Gaston County to provide $25,000.”
The year prior, Hanauer penned “The Capitalist’s Case for a $15 Minimum Wage” for Bloomberg News.
“The extreme, and widening, wealth gap in our economy presents not just a moral challenge, but an economic one, too. In a capitalist system, rising inequality creates a death spiral of falling demand that ultimately takes everyone down,” he wrote. “The most powerful and elegant antidote is sitting right before us: a spike in the federal minimum wage to $15 an hour.”
When people questioned why he paid less than half of the wage he was advocating for other businesses, Hanauer tweeted, “Because the min wage is 7.25 an hour. Make me raise wages by raising the minimum wage.”
However, that’s not how a free market works. If Mr. Hanauer believes people work harder or are otherwise work $15 an hour, he should feel free to pay that wage and the market will tell him whether that is a good idea or not.
Instead, Hanauer appears willing to advocate for government to meddle in the affairs of the free market in order to force companies to pay more while he still is unwilling to pay this supposedly-fair wage himself.
If that is not the very definition of hypocrisy, then what is?
It would be great if there were a “magic fix” to fix economic woes. If raising the minimum wage created wealth, we would have seen the benefits by now.
Instead, it just devalues our money. If a candy bar costs $1 on Monday and the minimum wage increases 10% by Friday, how likely is it that the store selling that candy bar is simply going to endure the costs associated with running a business?
Instead, for a business to survive, if they are forced to pay their employees more, these costs must be passed onto the consumer. Now, because the store has more costs to pay for employees, that candy bar is not $1, it’s $1.10.
The store employees appear happy because their paychecks are 10% bigger. Simultaneously, however, their rent goes up. The cost of gas goes up. The cost of their favorite candy bar goes up. Their paycheck is bigger, but the costs go up and everything becomes more expensive.
Those who crusade for $15 minimum wages are not only pathetically ignorant about economics, they are also in danger of eradicating lower-end jobs.
If we can use robotics to do the heavy lifting when building cars, we can build robots to assemble Big Macs and take orders.