Minimum wage hits blue states hardest

An increase in the minimum wage is coming in a couple of weeks (July24). And guess what? It will hit blue states hardest........

The lower cost of living in central states makes the higher minimum wage even harder to absorb, because customers can’t pay the higher costs. The same breakfast could cost $10 in a New York diner and $5 in South Carolina. That’s why it makes no sense for Congress to impose Blue State rates on the Red States, unless it’s to drive up the unemployment rates of their low-skilled workers.

Members of Congress assume that if the minimum wage were raised, all workers would retain their jobs. But this is not the case. An increase to $7.25 an hour, plus the mandatory employer’s share of Social Security, unemployment insurance and workers’ compensation taxes, brings the hourly employer cost close to $8, even without benefits.

With the minimum wage increase, employers will only hire workers who can produce $8 an hour worth of goods or services. That will be fewer people than they employ today. Employers can change technologies or hire more skilled workers to keep their firms in business.

Denying work opportunities to those whose skills and output don’t add up to $8 per hour is not compassionate, it’s manifestly unfair. At a time of rising unemployment, the federal government is dooming unskilled workers to the ranks of the unemployed by saying they cannot even take the first step on the career ladder. That’s not the road to job creation and economic recovery.

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Once again, it blows me away that liberals are so quick to embrace the very marginal science of global warming yet ignore very provable science like, say, THE LAW OF SUPPLY AND DEMAND.

So let's go through this for your liberal arts major that somehow received a college degree without passing econ 101.

See, when prices increase, demand for the product and or service decreases. So when you artificially increase the costs for labor what happens? anyone? anyone? Bueller?

The demand goes down.

Look, I'm not trying to be a prick by laying this out. I don't make up the law just to be hard on the working guy. I also don't like the law of gravity; especially when I weigh in every Sunday morning.

But that is the economic reality we live in.

Let's take an example. I can make a fabric paying $8.00 to some unskilled worker in the US or I can pay an unskilled worker in say Thailand (can you say Nike) for $1.00. Where do you think I'm going to take my production.

This doesn't even include environmental mandates, OSHA requirements, various state and local zoning issues, an upcoming mandatory health care requirement, etc.........

Once again the minimum wage doesn't impact me directly; I pay my employees well above minimum wage. But like all business owners, prices will eventually increase on everything I buy for my business and guess what I do with those price increases?

If you guessed, "he'll increase his prices" you would be correct.

See a dirty little secret The Obamunists won't tell you. When the people on top of the food chain have their prices increased (taxes, labor, materials, etc.), they simply pass on the increase to their customers or vendors. That cycle continues through the economic food chain until you get to the bottom. Who does the poor guy at the end of the food chain pass his price increases on to? Nobody! He eats it.

So once again, let me repeat that I'm not a conservative for me, I'll do fine in any economy because I have the skills to adjust.

I'm a conservative for the little guy out there. And laws like minimum wage hikes only end up hurting the very people they're designed to help. You'd think a congress person or two might have enough wisdom to understand that.