The Ethics Of Minimum Wage
The debate for higher minimum wage keeps getting heated without agreement from Republicans or Democrats. While Democrats argue for Trickle up economics, Republicans argue for Supply-side economics. Although Democrats say raising the minimum wage will stimulate the economy, more people will lose their jobs and government policies will lead to more policies and will make the economy less free.
It is proposed that the way to stimulate the economy is to have consumers buy products. This is the basis for Trickle up economics. When workers have more money, they are able to purchase more products. Recent studies state that. If there’s little change in price and an increase in income, this would suggest that it would be money gushing upright? There’s only one problem with this. There is a set line of profit for most businesses; if you raise the wage people will get fired. If the employer is forced to pay more, they’re going to hire someone with more skills, education, etc. The confusion remains that the idea you are going to make some poor people richer while making poor people poorer because they lost their jobs.
Peña 2Democrats tend to point at big businesses and say how evil they are, but conveniently left out small businesses and the competition for jobs. Carol Roth notes that. In an ideal world, what is the minimum wage? Why is it $15? Why not $35? Why not $55? Why not $100? How dare an employer deny a burger flipper their rightful $200,000 a year. Along with a loss in jobs, it’s even harder for low-skilled workers to compete for jobs. The Heritage Foundation stated that increasing the minimum wage. It is not vicious, cruel, or immoral for an employer to make an offer that a person consensually accepts. But is vicious, cruel, and immoral for a 3rd party to interfere in a consensual relationship. People want a lot of things, health, housing, to live forever, a pony; There are many things people want, the problem is, there is no pony tree. Small businesses can’t afford higher wages, if you have $30 and you’re giving two employees each $10 when you raise it to $15, you’re going to have to lay someone off.
The political advocates of higher wages aren’t just acting ignorant of the consequences, but also have an underlying motive. The dogma that the Democratic party is telling is believed by the ill-informed public. Professor Thomas Sowell states. Democrats often make Peña 3reference to Henry Ford and how he was able to raise the wages and his prosperity was phenomenal, but Henry Ford didn’t have a gun to his head forcing him to pay higher wages, him raising wages was a competitive decision because he could afford it and because he needed a lot of workers for his new assembly line system. The virtue signaling of the Democrats is more than an economic decision. All of the policies from the Democrats sound good, financially beneficial, right? But when put in practice, they fall flat. One government policy leads to the next. When you raise the minimum wage, then it’s going to raise the rent when you raise the rent, you need to build affordable housing, when you need to build affordable housing, you need to tax people to build that affordable housing when you tax people for that affordable housing, people move out of the city, then you have to raise the taxes on the people to remain in the city. This is how you hollow out a major metropolitan area in the U.S.
The political & economical debate of minimum wage is no simple discussion, political thinkers have to take into account: Job losses, small businesses, low-skilled workers, inflation, taxes, and political exploitation. Most of the divide in society comes solely from ignorance; the general population should all become educated on the subject, and then we could have a meaningful discussion about poverty in this country.
