In this video, I sit down with author and economic analyst John Sneisen to talk about the recent "disaster" in Seattle as the minimum wage is hiked to $13/hr following its recent hike to $11/hr.
As I had predicted in 2014, the minimum wage hike would lead to vast unemployment, poverty and cause businesses to look elsewhere to set up shop.
Well, the truth always prevails eventually!
According to the study,
"The numbers of hours worked by low-wage workers fell by 3.5 million hours per quarter. This was reflected both in thousands of job losses and reductions in hours worked by those who retained their jobs."
"The losses were so dramatic that this increase “reduced income paid to low-wage employees of single-location Seattle businesses by roughly $120 million on an annual basis.” On average, low-wage workers lost $125 per month."
It's basic economics and market principles to understand the inflation of the price of living as the wage is raised, all while employment crashes in an attempt to save the markets from total destruction. Everything the government does, the free market does better!
People have to understand the difference between the amount of money they get and actual value as value goes down as the wage is forced up.
Who benefits? McDonalds, Burger King, Walmart, the companies these "Fight for 15" activists say can afford to pay them more. Of course they can afford to pay them more, but that's not the point. The small businesses can't. That's why Walmart and McDonalds support the wage hike. It leads to further monopolization and less competition in the market.
This also leads to massive job automation and will lead to vast long-term poverty rates.
Time to grasp reality folks! Just because something "sounds" good doesn't mean it is.
The minimum wage hike begets poverty and inflation. This isn't rocket science.