Why are all of these liberal union groups only demanding to raise the minimum wage to $15.00 per hour? Why not demand $50.00 an hour, or better yet, $100.00 per hour?Heck, I’ll flip burgers for that. It would sure beat what I make blogging.
Oh, but if they did that, they’d have to admit that it won’t work. Can’t have that, now, can we?
The one thing I’ve never had anyone do is explain to me why if a $15 an hour minimum wage is a good idea, a $100 an hour minimum wage is a bad idea.
I suspect it’s because they realize that if they do, the jig is up: if they raise the minimum wage that high, companies won’t be able to pay the wage, and either there will be massive unemployment or massive inflation, as companies try to make up the difference. Mostly unemployment and shutdowns, because the money supply can’t grow that fast without a Weimar meltdown. But the trade-off is basically a linear function — raising the minimum wage by a lesser amount just means fewer people lose their jobs or go out of business. In the case of fast food workers, what would happen is that hamburger-making machines would become cheaper than burger-flippers. (In fact, that break-even is already past, the burger-flippers just don’t know it yet.)
Be sure to read the whole thing, as it segues into how our all powerful and beneficent government has already eradicated poverty, they just haven’t told us yet. Well, unless there’s some funny accounting going on.