We’ve all heard the arguments for a higher minimum wage now. Some states have been suckered into this idea already. Take California for example, this absolute sinkhole for business and productive economic growth is adding yet another weight on the scale pulling businesses out of the State to Texas, Tennessee, North and South Carolina, Florida and elsewhere. California just passed a $15 minimum wage primarily driven by fast food laborers. At the surface, great job California for coming out with legislation that helps people make more money and live a better lifestyle. Wait, let’s think about this for a moment. What happens with the government instills changes that change the course of capitalism? It messes up the finely tuned machine of “Mr. Market” who ALWAYS has the best way to define who should be paid what. So now, people will pay $6.50 for their double cheeseburger as opposed to $4.50 prior to the wage hike. The business owner now will be forced to look for ways to lower their labor costs to stay relevant and profitable and will invest in technology that does the job for more people so they can fire some of the staff to stay afloat. I hate to be the one that is breaking this news to someone who is working in fast food currently and doesn’t understand the implications of government involvement in business, but this is what is happening and will happen.
So what is the solution? I agree, people can’t survive on a $8/hour job full time, this just doesn’t work. For one, we need to create opportunities for a low wage worker to learn, develop and build their resume to have more opportunities to work towards. Make these available Jerry Brown through state funding if you insist on spending taxpayer dollars. No one was supposed to go into minimum wage Fast Food as employment long term. It’s not a bad thing to be in Fast Food, but if it’s long term you better be moving up towards management and eventually even ownership. Think about the average winner you have met recently at a fast food drive up window, most of the time they aren’t exactly going out of their way to win over your trust and confidence in them that you can just drive away without double checking if your fries and burger made it in the bag. These are people who just don’t care most of the time, they are there because they have to or because they need to show someone in their life they need a job. I don’t have a problem with this, that’s ok, but don’t kill the business owner by forcing him to pay each one of these losers the same high minimum wage. The ones that want to succeed need to be given opportunities to excel, the ones that don’t want to either need to be fired or can stay as a mediocre human their entire lives. Last I checked, mediocre humans don’t make $15/hour.
I get it, It’s 2016, people don’t have to work hard and still get to benefit from social programs and government handouts. Other people have rich parents or foundations they rely on, both parties seem to hate one another for what circle of life they were born into. Our programs, economy and regulations need to start pushing people to fight for something they want, make them work hard again and put in effort to succeed at something.
Next let’s talk about Joint Employer Liability and McDonald’s – more examples of winners trying to kill productive business.