The Young Turks, a liberal political commentary program, has stayed true to its ideology and has created the following image that its followers are having fun circulating on social media.
I am not going to dispute their math, because if it’s off by a few cents (or even a few dollars), it doesn’t even matter. What I do know, as someone with basic economics knowledge and an understanding of cause and effect, is that if The Young Turks and their Occupy Wall Street-type followers who complain so passionnately about the wage gap get their way, the following would also happen:
The cost increase in our workforce’s largest expense, human resources, would leave the vast majority of us with no job, because companies could not afford it. This would lead to decreased domestic production, less merchandise available for sale. The scarcity of product (coupled with astronomical production costs) would cause prices to rise. But we will not have the money necessary to buy anything because most of us will be out of work. Less sales taxes lead to increased income taxes. Since the poorest (and there will be many, many, many more of those) don’t pay income taxes, the burden of paying them will fall to the richest among us. Great, right? Nope. IF they stay in the country, the taxes they pay on the lower income will be less, leading to fewer (if any) social programs (bye bye, medicare), the inability to sustain even the most basic infrastructure (reliable roads, nah!) and their ability to maintain their employees at these ridiculous wages will be severely depleted (you can forget the idea of NEW jobs!), leading to even less jobs, less disposable income, less production, but unsustainably high rates of inflation, which just exacerbate all of the above problems, make borrowing money impossible without leading to definite financial ruin. Oh yeah, and that girl in the photo won’t have any work because a meatball sub will cost $25.99 to pay her absurd wage. But please buy one from her, because otherwise the restaurant will close, and she’ll be out of a job. Yeah! #RaiseTheWage.
But you’re right, there are people who benefit from raising the domestic minimum wage: offshore workers. Don’t know what that is? Those are the people in other countries who are hired to do the work that our fellow countrymen could be doing. These are the people who answer your customer service phone calls and barely speak your language, but they’re open 24 hours a day, in a call center around the world, making a fraction of what a local person would earn.
Yes, the only folks who benefit from this shortsighted campaign to #RaiseTheWage, are those who work in “sweat shop” type establishments, who get taken advantage of on an hourly basis, who are forced to live in abject poverty to sustain our 1st world desires. So congratulations – your #RaiseTheWage policy is actually contributing to the abuse of the labour force in another country. But who cares, right, as long as you can afford the latest iPhone.
Is financial equality still desirable if it leaves us all equally poor and equally struggling, with absolutely no incentive to work hard, because it’ll be impossible to improve our stock in life?
Great plan, Young Turks, really well thought out.