One of the unintended consequences of the minimum wage is that businesses would hire fewer people or reduce their workforce altogether. Unions know this so they try to cut a deal with companies and pledge to work for less if management unionizes the business. Just look at what’s happening in California (SEE: Union Hypocrisy: Los Angeles unions want to be exempt from $15 minimum wage they fought for).
If more jurisdictions across the United States decide to raise the minimum wage to $15 an hour then a considerable number of businesses say they’ll have to reduce their workforce in order to pay for the substantial increase in labor costs or increase the cost of goods.
According to a new study by the Express Employment Professionals, nearly one-third (30 percent) of U.S. businesses warned that in order to survive a $15 minimum wage environment they have to cut staffing levels.
The survey further discovered that more than one-third (37 percent) of U.S. businesses would raise the price of products. Just one-fifth of survey participants said they would raise wages for those already earning more than the minimum wage.
“There’s no doubt it makes for a good talking point, but the real question is whether it makes good economic sense,” Express President Bob Funk said in a statement. “While some workers will see a raise, which is good news, this survey shows that there are clear negative consequences for raising the wage to $15.”
The Fight for $15 movement doesn’t understand the unintended consequences of the minimum wage. It hurts the very people they are trying to help, including the poor, the unskilled, the uneducated, the youth and immigrants (SEE: 8 key arguments against raising the minimum wage to $15 per hour).
As Murray Rothard eloquently stated, the minimum wage is compulsory unemployment.
Leave a Comment