What one thing could cut economic output by $2 trillion through the loss of 1.8 million jobs over the next decade?
Raising the federal minimum wage to $12 per hour.
Hey guys, Kristin Tate here to talk to you about what a bad idea it is to raise the federal minimum wage.
A new report from the National Federation of Independent Businesses is further evidence to support what we, as capitalists, already know.
Raising the minimum wage not only hurts employers, but employees as well, and the economy overall.
3.3 percent of all hourly employees earn the current federal minimum wage of $7.25 an hour.
A $12 minimum wage would increase cost of labor for those workers by 65 percent, with no guarantee that the value those workers bring to the business would increase.
Because that’s what wage should be measured on—the value you bring to the market place.
Here’s the cold hard truth: according to the report, 57 percent of the jobs that would disappear, as a result of raising the minimum wage to $12 an hour, would come from small businesses.
You know, those ones that you’ve been hearing politicians say power the economy?
Both Trump and Clinton have said they would support increasing the federal minimum wage. Clinton directly supporting an increase to $12 per hour, while Trump hasn’t been explicit about what amount he would want to enforce.
Look, minimum wage laws hold back businesses and workers.
Workers should be able to negotiate their wage based on the value they bring to the workplace and employers should pay based on that value.
Bottom line here, regulation like minimum wage stifles business and innovation. Let’s stop pretending that enforcing a minimum wage is actually going to help the economy.
Because it won’t.