Go stand on the street and ask people if the government should force companies to pay a minimum wage. And I bet most people, especially young people, would say, “that’s fair.”
Then ask if they would be willing to pay for it personally, out of their own pockets! And what do you think the response would be? “Hell no!”
I remember a meeting at the TV station I worked at in Phoenix. It happened about 30 years ago when a weekend news anchor was fired. The staff was upset so the management called a meeting to try and mollify the angered troops. After hearing all the complaints, the general manager stands up and says, “All right, how many of you are willing to give up some of your income to keep the man on the job?” And one of the production employees, answers,” No way, I can’t give up my money for someone else, no way!” Everyone else was silent, except for two anchor ladies, who, because of family and marriage, were rich beyond your wildest imagination.
Now let’s advance to about a year ago, California’s new minimum wage law was put into effect. I’m in a restaurant and I’m thinking, well I wonder if the prices on the menu have increased. Scanning the menu down through the appetizers and entrées, ‘Nope, no increase!’ Then I reach the bottom of the menu and what do you know? I see this: “A notice to our patrons, because of the increase of the new minimum wage law we are forced to add a surcharge to items on our menu!” I think it was 4 or 5%!
This practice was not welcomed by the San Diego community, go here to see a report from one local TV station: ( http://www.cbs8.com/story/37581641/local-restaurant-surcharges-take-customers-by-surprise )
So what we have here is a simple and basic example of income redistribution. And now what are my options? I have not been back to that restaurant since and will never return.
What worries me about the leftist movement to raise taxes and fees, is that they never take into account that you just can’t control people’s behavior. (Unless, of course, if you live in a socialist society, where they force you to comply. Winston Churchill once said, and I’m paraphrasing, ‘Socialism can not work without a gestapo, or police force to enforce it, because socialism goes against human nature.’
CNBC Headlines: “800,000 people are about to flee New York and California because of taxes, say economists.” https://www.cnbc.com/2018/04/26/800000-people-are-about-to-flee-new-york-california-because-of-taxes.html
“Californians fed up with housing costs and taxes are fleeing state in big numbers!” https://www.cnbc.com/2018/03/19/californians-fed-up-with-housing-costs-and-taxes-are-fleeing-state.html
You raise taxes on “the rich” and the rich find ways to avoid them, and if that means not patronizing companies, not investing in the economy and or moving to a tax friendly state so be it. So what happens to the restaurants, the companies and the states? They lose money, some are forced to go out of business.
Fox Business News Headline: “Minimum wage hikes sending restaurants the way of the shopping mall?” https://www.foxbusiness.com/features/minimum-wage-hikes-sending-restaurants-the-way-of-the-shopping-mall
Take for example this scenario: The Federal Government passes a law that requires all cuts of beef to be sold at no less than 8 bucks a pound. You have a choice, you can buy ground chuck at $8.00 a pound or you can buy filet mignon at $8.00 a pound. What are you going to choose? The filet mignon of course. And what happened to the ground chuck? It becomes worthless. Raise the minimum wage and what happens to the worker whose skill level is below that wage? They become worthless.
And this is happening right now. I stopped in at a McDonalds in Gila Bend a few months ago, and guess what? There was a long line in front of the automated computer kiosk, where people were ordering their meals….from a machine……. eliminating the need for an employee at the counter.
And a final thought, when I started out in broadcasting, my first paying job was at radio station in Ashtabula, Ohio. And my first paycheck was for 78 bucks, for one week, before taxes! I said to myself, ‘what do I have to do to make more money?” And the answer was very simple. Was it stand out in front of the radio station holding a sign demanding an increase in my pay? No, the answer was simple, improve my skills, get an education, and move up to a higher paying job. And that’s what I did throughout my entire career.
And only in America is this opportunity just so easy to do.