Geise: Raising the minimum wage increases prices and costs jobs
The economic issue involving raising the minimum wage is as revealing as any of the level of ignorance of the American people and particularly our leadership on this subject.
Increasing the cost of labor to the employer forces the business owner to either pass that cost of doing business onto the consumer in the form of higher prices or eventually go out of business. Both options result in fewer jobs.
In order to remain in business, many employers have fled the country to places where labor as well as a multitude of other costs are much less.
As more Americans lose their jobs, the collective financial burden on the remaining productive sector becomes greater. The combination of the higher prices and higher costs of supporting the additional welfare recipients result in no net gain to those who manage to keep their jobs at the higher minimum wage.
Incidentally, the minimum wage in this country is already many times greater than the standard wage in China… and Chinese wages will not be catching up any time soon. Manufacturing jobs there have already been outsourced to Cambodia, for example, where labor is even cheaper.
Also, anyone attempting to organize workers in what remains communist Red China will soon find themselves asleep with all of their “terrorist” friends in a hole in the ground.
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