BloggeRhythms

A subject bubbling just under the surface is the liberal mindset to force a significant increase in the minimum wage. The issue's extremely important because it not only clearly illustrates how out of touch with reality these people are, but also underlines how much economic damage they cause to the nation.

 

An article in National Journal on-line reports that: “A prominent liberal think tank dubbed it a "political goldmine." The New Republic called it "the issue that could take down Mitch McConnell." The issue is raising the federal minimum wage, and President Obama's sweeping speech on income inequality has thrust it to the center of his party's platform in 2014.

 

Democrats increasingly view championing the pay of hourly workers as a can't-lose issue that revs up their base of liberal, black, and Hispanic voters. Perhaps more important, it also resonates with the white, blue-collar workers who overwhelmingly side with Republicans.

 

Since minority participation tapers off in midterm elections, assailing Republican opposition to hiking the minimum wage could be a more potent Democratic wedge than immigration reform, particularly in red states with competitive Senate campaigns, such as West Virginia, Kentucky, Arkansas, North Carolina, and Louisiana.”

 

However, just like the health care tax is proving extremely unpopular and technically malfunctional, while significantly more expensive for many, a sizable minimum wage hike will ultimately do far more damage than good.

 

Presently, many businesses rely on minimum wage workers to perform basic, repetitive, routine tasks which permits those employers to maintain low prices to customers. On the employee side, affordable wages offer entry-level job opportunity with the chance for advancement based on performance, experience and time of service. 

 

If the wage level is mandated to increase, though, both the employer and employees will ultimately suffer, as will customers from increased prices.

 

Businesses will not simply sit still and routinely raise prices, that’s not how they operate. Instead they’ll automate further, replacing personnel with equipment, automation, and technology, the investment to be offset by long-term gains in efficiency and system efficiency.

 

So, once again, we have theoreticians with no firsthand experience whatsoever clamoring for unrealistic change. And the long-term result will be highly sophisticated, streamlined enterprises eventually requiring almost no workers at all. 

 

That’s it for today folks.

 

Adios