Raising the minimum wage from $7.25 an hour to $10.10 an hour will not just be a mistake – it will be a colossal nightmare that cannot be undone.
It’s not just a matter of paying someone an extra $2.85 an hour. There’s so much more. A few years ago I did analysis of what a person making $10 an hour cost a company (this is without health insurance, paid holidays or paid time off). It really costs $25 an hour!
Now what about those people who have worked hard to get paid $10 or $11? Well, they have already started to complain: “What about us now? We are only making minimum wage or just above; we want a raise of $2.85 an hour, too!” Well, that $2 burger will probably cost you about $4 to $5. Forget getting fries or a drink. You won’t be able to afford it – and you won’t be any better off.
This kind of increase will raise the price of everything. I’m not opposing a raise in the minimum wage. Just do it smarter – 50 cents or 75 cents a year would be the way to go without throwing the whole country under the bus.
Just what we need – the government making more uninformed stupid decisions. Didn’t it learn anything when the housing market crashed?