$15 Minimum-Wagers Now Want Fewer Hours to Continue Receiving Subsidies

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Fri, Jul 24 - 2:06 pm EDT | 2 years ago by
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    In an unforeseen turn of events by the “Raise the Wage” crowd in Seattle, the same government that is mandating businesses pay their minimum wage employees $15 an hour is now threatening to take away their government-provided subsidies for making too much money.

    Minimum Wage Rally
    Photo by Scott Olson/Getty Images

    In reaction, these same employees who were complaining about not earning enough to make a living are now asking businesses to reduce their hours so they can still qualify for the handouts.

    As I’ve discussed before, minimum wage will never help anyone get out of poverty. Basic economics dictates that raising wages means businesses have to offset the loss by raising prices on their products. However, we can see now that many of those campaigning for a raise of the wage had never intended to leave poverty in the first place.

    More money for less work was the key, and governments were only more than happy to acquiesce if it meant keeping voter loyalty. Essentially, the raising of the wage was politicians buying votes.

    Along with other drawbacks – such as businesses closing, or coming up with various other methods of charging the customer more to stay in the black – the raising of the minimum wage has proven to be a useless gesture. Even welfare claims have changed little. According to Fox News, March saw 130,851 people enrolled in basic food services and that number only dropped by 475 enrollees to 130,376 the following month.

    Businesses in other cities can expect the same kind of hardships as the trend continues to spread. New York is now moving forward with a wage hike of their own, following the increase in Los Angeles.

    Hailing from Austin, Texas, Brandon Morse has been writing about politics and culture across many websites for the last six years, with a heavy emphasis on anti-authoritarianism. Aside from writing articles, he is also known for voice acting and authoring scripts. He is an avid gamer, dog person, and has a bad habit of making vague references to things no one has heard about or seen. Follow him at @TheBrandonMorse on Twitter.

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      • chris

        There’s something that you and a lot of others seem to take for granted when discussing the minimum wage. I agree that minimum wage (and worse yet, raising it) is a terrible idea, but would a business be wise to raise prices to offset the increased cost of labor? The equilibrium for supply and demand are already figured into the price to maximize profits. Raising prices to compensate for higher expenses would lead to reduced profits, no? The consumer’s willingness to pay (at a certain price) doesn’t suddenly change because the employees have become more expensive. Inflation would change this price, but that’s another point entirely. It becomes more of a question of whether the business closes or not rather than whether consumers pay more. Overall good article, it’s just this claim that I find suspect.

        • James

          The problem is that many businesses operate with a very small amount of real profit. Especially a lot of small businesses. And considering that Inflation is completely controlled by the fed atm and that it would raise and lower depending upon a hell of a lot of factors…

      • Bordeaux Vixen

        according to fox news, pffft.

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