Biden Double Minimum Wage For Federal Workers From Next Year and it Will Lead to Skyrocketing Prices
Joe Biden's desire to inflate the financial bubble even more than it is inflated now will not lead to anything good.
Despite the fact that American society has been demanding a minimum wage of $ 15 per hour for several years, business owners are already warning that prices for services and goods will rise in direct proportion.
“We’re not that far off of like for example, a $15 number,” Chipotle chief financial officer Jack Hartung said. “But let’s say, for example, that there’s going to be an across-the-board 10% increase in our wages.”
“And that would, to offset that with menu pricing, that would take us 2% to 3% price increase,” he added.
87% of Democrats say they favor increasing the federal minimum wage to $15 an hour, including 61% who strongly favor it. 72% of Republicans oppose the idea, including 45% who strongly oppose it. https://t.co/cBdKdKP4iQ pic.twitter.com/xTtoMqORXz— Pew Research Fact Tank (@FactTank) April 22, 2021
Today, Biden signed an executive order that will come into force in March next year, and will also be tied to inflation, which will regulate the growth of the minimum wage in the future.
Contrary to the statements of the Presidential Administration that this innovation will not in any way affect the labor market and the general economy of the country, various analytical groups say the opposite.
“Let’s start with the people that the minimum wage benefits. A segment of people will retain their current job and the amount of hours that they work after the minimum wage is increased. For that reason, their income will rise and they will make more money. This is the part of the issue that leftists talk about most, and it is the part where their narrative often ends,” Matt Keck of Medium states in “Consequences of the $15 Minimum Wage” article. “Other employees will be priced out of their jobs and possibly be priced out of the labor market altogether. For an employer to rationally hire an employee, their employee must bring a financial return to their company equal or greater to their hourly wage. Some jobs produce more for a company then others.”
Also, the Congressional Budget Office released its analysis of the increase in the minimum wage and, in their opinion, this will only aggravate the situation.
“Increasing the federal minimum wage would have two principal effects on low-wage workers. For most low-wage workers, earnings and family income would increase, which would lift some families out of poverty. But other low-wage workers would become jobless, and their family income would fall—in some cases, below the poverty threshold,” the document says.
Image: The White House / Public Domain