Progressives often advocate for government-centered mandates that are steeped in feel-good Utopian ideals with absolutely no basis in reality.
Case in point is the current populist drivel about raising the minimum hourly wage to $15 that is being regurgitated by willfully ignorant liberals with no knowledge of basic economics or how things work in the real world.
In reality, wages are just one small factor in the overall equation that business owners must keep balanced at all times.
If wages are arbitrarily raised by government mandate, that forces business owners to raise prices on consumers, cut employee hours or get rid of some employees altogether in an effort to save their often small profit margins.
Those employees who are let go or have their hours cut are often replaced by automation and new technology, which will cost business owners less in the long run than paying entry-level employees a wage higher than they truly deserve.
We are already seeing this type of thing happen in retail stores and restaurants all across the country, and if the government forces businesses to raise their minimum wage, we will see a veritable explosion of new technologies replacing workers virtually everywhere.
McDonald’s has already shown us a preview of what we can expect to see the next time we order a Big Mac if the minimum wage is raised to $15 per hour (H/T Young Conservatives).
That is a touchscreen ordering portal with an attached card reader that will quickly and efficiently take customer orders without screwing them up.
Nor will the touchscreen ordering portal talk back rudely, call in sick to work or simply ignore its duties.
If a small business owner can get the performance he needs from a human employee at a fair wage, he will continue to do so.
But if the government mandates an otherwise unwarranted raise in the minimum wage, it will have only one guaranteed effect — putting low income wage earners out of work.
—Courtesy of The Conservative Tribune