February 16, 2024 | $50 Minimum Wage?

Lawmakers should be required by law to pass a financial literacy test before taking office. California has repeatedly raised the minimum wage as the cost of living continues to rise. They have not lowered the amount of taxes that the state will collect from these workers. California has the highest debt of any state in the US, with some reports estimating it to be around $520 billion. The cost of living continues to rise, but would raising the minimum wage actually help?

Now, I am not against raising the minimum wage. In Florida, I voted for a hike in the minimum wage in 2020 that would increase the minimum wage gradually to $15 an hour. Under the mandate, Florida’s minimum wage rate increased to $10 an hour in September 2021. The minimum wage then will increase by $1 each year until it reaches $15 an hour in 2026. The minimum wage rate applies to all public and private sector employers, regardless of size or number of employees. I voted for it because by 2026 we should see a rise in inflation due to shortages.

I would prefer to see the minimum wage qualified by age. The youth should not be discouraged from seeking their first job due to wage mandates that force employers to downsize. Small businesses were decimated after COVID lockdowns and increasing health care costs have made it difficult for small businesses, especially those service-oriented, to hire additional staff. This is why we see an increasing number of self-check-out options, automated jobs, and outsourced customer service positions in countries outside of the US.

Barbara Lee, a Democratic candidate in California, is advocating for a $50 minimum wage, which would equate to approximately $104,000 per year for a full-time worker. “In the Bay Area, I believe it was the United Way that came out with a report that very recently $127,000 for a family of four is just barely enough to get by,” Lee said. “Another survey very recently: $104,000. For a family of one, barely enough to get by low income because of the affordability crisis.”

California already has a $20 minimum wage in place. Countless employers were forced to let go of employees and raise their prices to meet this requirement. In no reality should a minimum wage employee receive a six-figure salary as it simply is not worth the cost to the employer or consumer. Minimum wage jobs were intended to be entry-level. Inflation will continue to rise

I believe they are seeking to raise the minimum wage to unsustainable levels in an attempt to usher in Universal Basic Income. The Federal government is not permitting migrants to work and using them as the test subjects for UBI. The cost of living will continue to rise as government spending is only rising with no chance of stopping due to numerous wars. Politicians should not be allowed to toy with the minimum wage to buy votes as it is detrimental to the economy.

Martin Armstrong February 16th, 2024

Posted In: Armstrong Economics

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