A $15 minimum wage would Be Disastrous for Small Businesses, Juliana Kaplan and Other Short-Sighted Progressives Will Help China to Dominate The Global Economy – January 25, 2021,
So when people write articles, I like to do my research on the writer, and when I did research on Juliana Kaplan, it turns out she’s very young and most likely inexperienced in the world of basic economics. Her profile can be viewed below
So regarding government wage controls, especially from a Federal government perspective, it’s important to remember that most consumers don’t want to see prices rise. Most consumers prefer price deflation not rice inflation, it’s rare if ever you’ll see a private store have a sign that says “why pay less when you can pay more” usually private stores have “SALE” signs to attract shoppers wanting to save money.
Now, the reality regarding minimum wages is nobody is forcing you to work, welfare exists in most U.S States and most Americans regardless of the wage will turn down a job if they feel that a job doesn’t suit them. Now from a private business perspective, the main reason on the retail level most things are MADE IN CHINA which actually contributes to the higher cost of living in most U.S States is because of the existing minimum wages.
Former President of the United States who spent the vast amount of his life in the Private Sector tried to counter China, by imposing tariffs on Chinese made goods, but the reality is most manufacturers who make things that are available in Walmart and other private businesses ended up in China because of prior minimum wage laws.
Because America has the world’s reserve currency, counties like China can simply devalue their currency next to the U.S dollar, which in a U.S minimum wage environment equates to American manufacturing having zero chance of competing for most manufacturing jobs.
This of course as led to the acceleration of America becoming a service sector economy. The custom MacBook Pro I own was assembled in China, in fact, I was shocked when I got the UPS tracking number telling me that my custom Macbook would be coming directly from China.
Being that MacPro is a premium company, why doesn’t Apple hire American workers? Well, this starts with the minimum wage law, because firstly, minimum wages often prevent entry-level manufacturing jobs from being created in America, because it’s too expensive.
Remember that a minimum wage means that an employer will have to pay an employee with NO EXPERIENCE $15 an hour. So if a small business person with little to no money is starting out their business, can’t get a loan, then this entrepreneur is stuck and often times will be forced to turn to China to handle most of their manufacturing needs.
Now, in the service sector, it’s possible to turn a profit with the minimum wage, but that usually equates to higher prices for consumers. Established large companies, could care less about minimum wages, because their competition will be nonexistent, but the worst thing about the minimum wage is that it’s DISCRIMINATORY!
Family and Friend run businesses do not have to pay the minimum wage
I had a friend whose parents were Asian and they had a medium-sized business, none of them took a wage, they paid themselves in dividends and/or salaries I believe. Now, this is very unfair to people who don’t have this type of luxury, suppose I’m starting from the bottom, maybe I’m adopted, maybe I don’t have any family or friends, as a business owner I’m tied to the minimum wage law, while the family-run business is not.
Now, there’s so much more damage that the minimum wage law causes on society that Juliana Kaplan doesn’t even mention, but this is why Joe Bidens America appears to be the beginning of an economic disaster because people like Juliana Kaplan only mention the good side to minimum wage, she entirely ignores the bad side.
Now, the truth is I could go on and on about the $15 federal minimum wage, but if you notice most of the people who are for the $15 minimum wage, don’t have to pay OUT-OF-POCKET for it! Most people who never owned a business, don’t know the cost of doing business, most Unions as an example on the focus of the profits, the ignore the costs and the bank loans a company needed to borrow in order to make those ‘profits’
People like Juliana Kaplan are not restaurant owners, they’re not entrepreneurs, they’re usually the writers and from the privileged class. The politically connected or influential class. It’s easy to look at things from one side of the argument. But I just want to remind the reader, that China and other countries are outcompeting America, primarily because of the PRIOR minimum wage laws and the fact that America has the worlds reserve currency, and their countries can simply debase their currency next to the U.S dollar, thereby destroying any gains politicians and their minions hope to achieve by increasing the Government wage control.
I intentionally didn’t even bring up automation, because, the minimum wage law is dumb on multiple levels. In reality, it’s not worth debating, government wage and price controls have always created disasters, under FDR Social security and The FEDERAL minimum wage put America in a war, the minimum wage law was so bad that America had to ABANDON THE GOLD STANDARD!. Anyway, sometimes people have to learn things the hard way!
Interesting times ahead!