May 31, 2006
NC Minimum Wage Increase
The Minority And Youth Unemployment Act of North Carolina
has passed the House
, has already passed the Senate, and is extremely likely to be enacted into law this year. Why? Because the Democrats that run the North Carolina General Assembly are racist, I presume.
The supporters of this law are inaccurately calling it a minimum wage increase. The increase is almost a TWENTY percent increase, from $5.15 to $6.15 an hour. There are almost zero economists that agree this will do anything but reduce employment among those earning the minimum wage -- many of whom are minorities and youth. So the net result of this law will be to decrease the employment level of those people.
Fortunately, North Carolina's economy has been very strong with almost no unemployment, so the results of this will be hardly a blip on the screen -- unless you're an entry-level worker -- you will find jobs harder to find. McDonald's and Wal-Mart will either reduce employment numbers, creating poor service; or they will have to raise prices to pay for the increased expenses.
In addition, Luke Wake outlines some of the other effects of this horrible law -- making North Carolina even MORE attractive to illegal immigrants!
This just once again shows that the Democrat-controlled North Carolina Legislature is NOT interested in freedom or capitalism, only in government control of all production and industry in the state. That's the Democrat position, no matter how much they lie about it.
Posted by: Ogre at
01:03 PM
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1
I've sat through economics class. I've heard about minimum wage and how raising it would just lead to the cutting of workers. That works except, what if a business cannot afford to cut workers?
I think the NC General Assembly has their minds in the right place. They are looking out for the average American and thinking that $5.15 must be tough for someone to live on.
I'll watch this play out, and I hope it does not turn out "racist" like you claim it will. But if it does, than I guess more reworking of NC's economy will be necessary.
Either way, it's good that they are doing something Americans care about. I think most do want a higher minimum wage.
Posted by: Kevin at May 31, 2006 03:01 PM (rR3mc)
2
What if the business can't pay it? One of two things: the business goes out of business, or it is forced to raise it's prices. If McDonalds has to raise it's prices, those who are working for the newly increased minimum wage won't see any difference -- they make more but things cost more. What's the benefit in that?
I cannot understand anyone who thinks that the minimum wage should be increased. If 6.15 is good, wouldn't $10 an hour be better? Why is $6.15 the "perfect" number? Why not $20 an hour?
In a free country, there would be NO minimum wage laws. They're antiquated relics of the industrial age, useless in today's economy except to buy votes. Why does the government refuse to allow me to work for $2 an hour?
Posted by: Ogre at May 31, 2006 03:05 PM (/k+l4)
3
If businesses can't afford higher wages, they simply hire illegals. Since you don't worry about paying them minimum, no problema.
Posted by: burt at June 01, 2006 02:13 PM (3wX9y)
4
Indeed, that is yet another BAD side effect of raising the minimum wage -- it gives illegals MORE incentive to come to North Carolina and get free schooling, healthcare, and food.
Posted by: Ogre at June 01, 2006 02:25 PM (/k+l4)
5
The increase in minimum wage is really in effect a threefold tax increase:
1) Payroll taxes the employer must withold increase, thus more income to the state;
2) As Ogre said, businesses must either lay off people or raise prices of products. Price increase transates into an increase in sales taxes submitted to the state;
3) if people are laid off, there is an increase in the number of unemployment claims, some of which will be granted. The cost of paying for these also eventually gets transferred to the business in the form of increased SUTA rates and limits.
Bottom line: The only winner is the state.
Posted by: Kevin at June 05, 2006 03:53 PM (S0h74)
6
And that's exactly the intent of the minimum wage increase, no matter what it's supporters claim. Those that claim it will "help" the poor are either idiots or liars. It IS primarily designed to increase state income and control over people.
Posted by: Ogre at June 05, 2006 05:40 PM (acZAM)
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