The International Monetary Fund is downgrading its forecast for the U.S. economy this year and says America should raise the minimum wage to help the poor and offer paid maternity leave to encourage more women to work.
Of course this will eliminate poverty wages because it’s designed to kill businesses, therefore there will technically be no poverty wages. Even college finance students know wage hikes have to be covered somehow otherwise the business is liquidated.
The city of Los Angeles ruled to hike the minimum wages by 30% in less than 5 years, a move rendering local businesses less competitive and sustainable, while benefitting unions, illegal aliens and governmental bureaucrats.
Kristian Rouz – On Saturday, the mayor of Los Angeles Eric Garcetti enacted the law, authorizing an increase in the city’s minimum wage from the current $9/hr to $15/hr by the year 2020.
In a long-term perspective, such a move has potentially hazardous consequences, possibly undermining the economic competitiveness of LA-based enterprises, and disrupting business activity in the city. Continue reading
Essentially, voters allowed themselves to be duped into voting themselves out of business. Look for the cannibalization of the economy through layoffs and closures of businesses to begin a little before 2018, when the law goes into effect.
Business owner who supported new minimum wage realizes math isn’t strong suit—layoffs now likely.
What would you do if some small-minded government bureaucrat told you that your coffee shop or widget factory didn’t make enough money to justify letting you stay in business, and you were hereby ordered to shut down?
You would probably show him the exit.