By Tony Huppert, CEO of Team Oil Inc.
I wonder sometimes if some economists and politicians actually listen to themselves. California had a referendum to get the public’s opinion on raising the minimum wage to $15. Putting that question on a ballot is like asking politicians if they want a raise, oh wait, they do vote for their own raises, bad example. If referendums are the way the politicians believe it should be, then their raises, or pay cuts, should be based on voter input on referendums.
I listened to an economist being interviewed by a reporter in California, and he stated that the raise in the minimum wage shouldn’t affect job loss greatly. If anything, it should promote more efficiency, which, in layman’s terms, means job loss. In the 70’s, I was involved in a strike at a meat packing plant. About 3,500 employees went out on strike for better wages. The working employees ‘WON,’ but only 3,000 employees returned to work. 500 employees ‘LOST.’ Their jobs were eliminated.
It truly can’t be ignorance that is driving this. It has to be intolerance of politicians knowing better, but just giving in by putting it on the ballot. This way, the voters can be blamed and the politicians can say, “It wasn’t us.” I do agree with the one economist that stated, by raising the minimum wage, more efficiency and automation will eliminate more entry level jobs. At least, with the higher minimum wage, more taxes will be collected to help offset the increase need for social services for those who lost their job because of the increase.
‘Minimum Wage is a learning Wage’ . . . Until that sinks into the public’s head, the unsustainable spiral of passing wage increases on to the customer will continue calling for more increases in minimum wage to offset the increase cost passed onto the customers, and so it goes.