Saturday, July 25, 2015

$15 Minimum Wage - Backfires

Some cities and states, run by Socialists, have enacted a $15 minimum wage, which has backfired.  In some cases, employees have asked for part time work because if they work full time they can lose their Welfare or Food Stamps.  The same thing has happened with ObamaCare, since working 30 hours or less allows low income employees to get ObamaCare for little or nothing.  They are better off working less to get free medical insurance. 

The fact is that able bodied people on the dole getting Welfare, Food Stamps and Medicaid are far better off remaining on the dole than taking minimum wage jobs, whether at $10 or $15, so why work.  Since Welfare imposes no particular requirements to remain on the dole and Obamanistas have eliminated any time restrictions, that were enacted when Bill Clinton was President, people can remain on the dole permanently. 

Most important, there are around 50 million Americans on Welfare, Food Stamps and Medicaid along with 11 million Americans on Disability Benefits, many fraudulently, that comes right out of the Social Security Trust Fund, that don't show up in Unemployment Rates.  If these people were added to those that do show up in Unemployment Rates, those working part time that want full time jobs and those that have just given up looking for work altogether, the real Unemployment rate in the US would be about 25%, instead of the 5.5% that is reported by the federal government.  

Raising the Minimum Wage to $15 an hour is a job killer because at some point many of these jobs will be mechanized.  There is absolutely no reason that customers at a fast food restaurant can't place their own orders.  The registers could just be turn around with the order mechanism on the customer side and the cash drawer on the other side of the counter.   This would allow one attendant to man three or 4 registers just to take money or credit cards.  This is already happening at many stores that have no attendants at all because they have put in self check out. 

Raising the Minimum Wage may provide a feel good moment for Socialists; but it will just result in even more people on the dole.  How is that good for the people involved, or for America. 

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