In the vein that reality always trump liberal illusions and fantasies about how things work in the real world, we get an article where a baffled MSM reports that if the minimum wage is jacked up, people will be laid off. I am not surprised that’s what is going to happen, and the article states so:
WASHINGTON (CBS DC) – A new study has found that 38 percent of employers will lay workers off if the minimum wage is increased as President Barack Obama has proposed.
Express Employment Professionals, the nation’s largest privately held staffing firm, surveyed 1,213 business owners and human resources professionals nationwide asking them if they would be impacted if the minimum wage was increased.
Roughly 54 percent of the study participants said they would reduce hiring and 65 percent said they would raise prices on their goods and services.
“There’s been a lot of debate and speculation about the impact of a minimum wage increase on job creation,” Bob Funk, CEO of Express, and a former chairman of the Federal Reserve Bank of Kansas City said in a press release. “At Express, we decided to go directly to the employers who make those decisions to find out what a minimum wage increase to $10.10 would mean for them specifically and for the economy in general.”
Nearly 213 of those surveyed pay their employees the current $7.25 minimum wage.
The problem with this idiotic belief that government should regulate pay rates, to overcome the unjust system that allows the people that actually take all the financial risks to make good on that so hated by the left, is that it ignores the basic concept that when you jack up the cost of labor, said cost will not be incurred by the perceived rich business owner, but by the customers buying the service or products. Remember, we are talking about jobs that take about a day of training, tops, and can be done by anyone with an IQ above what would qualify a person as a moron. That is why they are minimum wage jobs. At this insanely high new rate, I bet the employer is actually better off replacing drones with automation, reducing anywhere from 50-90% of the low skilled labor staff. Don’t you pretend otherwise, because the automation trend is already in high gear: ask bank tellers or cashiers.
I was discussing this very issue with a coworker that felt this $15 minimum wage was a great idea – because of social justice and all that – until I pointed out that the service he constantly complained about would now be done by fewer people, while that $1 menu item would probably cost him more, maybe as much as half-again as much. Blank stare. A glimpse of an idea, not thought through, of course, followed by a grin, and the idiotic retort: pass a law to prevent them from laying off anyone. Presto! I told him that wouldn’t be a problem at all, but now his morning coffee & bagel was going to cost him $20 instead of $5. Apply the same logic to any other product and service staffed by minimum wage earners or produced by an unionized workforce with their pay tied to the minimum wage (the real reason democrats want to raise the minimum wage, BTW). Businesses have to earn enough money to pay the people working there, and make a profit, after all, because otherwise there was no reason to be in business. His next retort, after the same cycle, was that profits should also be controlled. I kid you not. I pointed out that that thinking led to all pay being controlled, including his, and that it was very easy to make the argument that he was over paid for the value he was producing. That seemed to get his attention.
In the end his retort was that there had to be a way for people to be paid a decent “living wage”, the earnings of the boss to be controlled, as all good communists believe is socially just, and the cost of things to be kept low to boot. It’s the mentality inculcated by the rot Engels and Marx produced that defines labor as the only thing of real value and remains unable to distinguish between the value of the service provided or product produced. In that world a guy polishing turds all day long results in the same value as the efforts of a highly skilled surgeon. I told him that he needed to move to Fantasy Island, where all dreams can come true, regardless of how improbable and impossible they were in the real world. He didn’t like that either. The fact is that in the real world, things work a certain way, and no amount of stupid legislation, no matter how sugar coated it is to make the turd it is creating palatable, will ever change that. But that’s liberalism in a nutshell.