A major component of the Obama/Biden economic strategy is to raise the minimum wage (don't take my word for it, it is clearly stated on the Obama website). Let's take a moment to digest just how exactly an increase in minimum wage would affect our economy.
How will employers pay for an increase in the minimum wage? Do we honestly think that businesses such as Wal-Mart, Target and all our grocery stores will just eat those added payroll expenses out of their own pockets? Of course they won't! They will either need to lay off employees, cut back hours or RAISE PRICES to compensate for a higher minimum wage. The alternative for most small businesses would mean going out of business completely. Meanwhile, there are those Americans who get paid a salary. Americans earning a salary will not benefit from a minimum wage increase whatsoever. Higher prices and inflation will make a $50,000 a year salary seem like much less. As for those who will be receiving higher wages due to this increase, well their budget won't get any better either. Higher pay doesn't matter much if you just have to spend more!
I just don't see how fewer jobs, higher prices and a decrease in the value of our dollar is going to help anybody.
2 days ago