Is $15 Per Hour A SCAM?
I remember the con men of old who used to travel from town to town selling various kinds of elixirs that would cure most any ailment known to man.
Of course the con artist was long gone before you found out you might have bought some watered down whisky mixed with some sugar.
I’m wondering if the state and federal governments aren’t trying to do the same thing with the $15 minimum wage.
It will be over and done before businesses, employees, and customers will discover they’ve been fleeced.
What Makes $15 Per Hour A Scam?
Let’s review some of the things that a $15 minimum wage would do for the government:
- The bulk of the raise would be in the 15 percent tax bracket. More bucks for Uncle Sam. USA 1 – Citizens 0
- It would most likely raise the poverty level and move many of the poor off subsidies and elevate their incomes too high to qualify for many benefits they might still need. More savings for Uncle Sam. USA 2 – Citizens 0
- It would reduce healthcare subsidies and put that increased price on the workers, as more and more employers are moving their workers to the failing Obamacare exchanges. USA 3 – Citizen 0
- Enforce the work provision of welfare and even more $15 per hour tax dollars would flow in. USA 4 – Citizens 0
Talk about a win-win.
What Will $15 per Hour Do To Employers?
Not every state has the population to support a $15 minimum wage. Montana doesn’t. A $15 wage with no real increase in production would cause two problems.
One, chains that do national advertising and promotion that locals have a hard time competing with would, over time, replace locally owned businesses.
Two, it will be harder for employees to hire promising young workers in any kind of training program for the future. You will have to go for people who are already making $15 or more to get good, experienced workers instead of entry-level workers who would be too expensive to train.
What Will It Do For Employees?
Your social security is based on your 35 highest earning years. The quicker you can move up the ladder the better chance you have of maxing out your social security each year.
Social Security should not be your primary retirement plan but if you can move up the income ladder faster, then saving and investing become more of a reality.
But at $15 per hour many entry level workers will be shut out of the system because not only do you have to pay an employee more for no increase in production you also have to pay them that same rate when they are not working.
The employer, as a perk for good work, usually pays the employee while on vacations, sick days, and personal days.
When you’re talking about paying five people, who are making over $30,000 a year, time off for no production, that soon becomes serious money. And that’s just the minimum you have to pay them.
Current workers, who have worked their way up to $15, are not going to accept entry-level pay. So the employer is under pressure to increase payroll with zero increase in production or lay people off.
Some Final Thoughts
Let’s review. The government is going to tax you more, kick you off needed programs because you make too much, increase your health insurance premium, reduce your chances of taking the first step on the income ladder, and make it all sound like they are doing you a big favor.
I sure hope someone in authority realizes all this before the government elixir wagon is too far out of town.
Torches and pitchforks anyone?