Sunday, March 8, 2020

People that think raising the minimum wage is a good thing don't really understand how it will work. First off, it won't really be a raise. The tax levels stay the same, so you'll pay more taxes on it, both in regular taxes and FICA, which the employer has to match. This means they'll either have to raise prices or cut back on employees or both to afford the so called raise. soon after the wage goes up, so does everything else, so it's like no raise at all. You'll probably take home a lot less in actual buying power, if not actual dollars. Minimum wage jobs are supposed to be starter jobs for the young, but these days, they're not. Moms are working their asses off at minimum wage jobs spending more for daycare or missing time with their family to try to keep roofs over their heads and food on the table. This will get harder and harder as buying power fades.
The real root of the problem goes back to Nixon. He did away with the gold standard that kept the dollar strong, and he gave China, at that time actually our enemy (if you don't get that, study the Korean war and what happened in Vietnam.) He gave them most favored nation trade status which means they don't pay much of anything in import duties and fees. What's that got to do with minimum wage? A lot, all the imports did away with not only skilled jobs but starter jobs too, and has taken the buying power of the dollar lower and lower.

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