Raising the minimum wage is a counterproductive and failed fiscal policy that the left continues to endorse.
Time and time again, history and economics have shown that minimum wage hikes have the opposite intended impacts. Still, we are unfortunately at a point where the Democrat Party is doing all they can to increase the minimum wage. Worst yet, their proposed numbers of increase are getting higher and higher, something which would only engender greater damage to the economy, if accomplished.
Right now, 2020 Democrat Tom Steyer is eager to boost the minimum wage to $22 dollars per hour, as documented by Breitbart News. The businessman continues to wrongly assert that such a hike would engender a better economy and less poverty amongst struggling individuals. In actuality, the opposite reality couldn’t be more accurate.
Reviewing Steyer’s Plan to Increase the Minimum Wage
While participating in a South Carolina campaign block party, Steyer promised attendees that his presidency would result in a $22 dollar per hour minimum wage. This plan is even more “progressive” that than of Elizabeth Warren and Bernie Sanders, both of whom are currently campaigning on a $15 dollar per hour minimum wage.
Over the past several months, Steyer has also spent millions of dollars on ads specifically designed to target South Carolina residents. Thus far in the polls, the 2020 Democrat is at second-place; only Joe Biden is beating him at this time.
The Dangers of Minimum Wage Increases
In theory, minimum wage increases sound great; in actuality, they simply don’t hold up. First and foremost, whenever the minimum wage goes up, so do the costs of living, goods, and services. In layman’s terms, the free market always adjusts itself, thus offsetting any potential, economic gains that minimum wage increases could theoretically engender.
Secondly, comes the loss of jobs. Minimum wage increases are notorious for prompting lower hourly wages and job lay-offs; however, small businesses are often hit the hardest. In many cases, small business owners simply cannot afford to increase their minimum wage. In order to offset the costs, many of these entrepreneurs either lay off their workers or go out of business altogether.
Of course, these are realities that Steyer, Warren, Sanders, and other Democrats will never confront as they continue to advocate for higher minimum wages.
What do you make of Tom Steyer’s interest in raising the federal minimum wage to $22 per hour? Let us know in the comments section below!