So today, it kind of struck me exactly what the President is trying to do with raising minimum wage. It started about 5-6 years ago with a little bill called the Affordable Care Act(ObamaCare) One of the provisions of this law provide what is called a Full Time Equivalency(30) for people who qualify for health care. It says that if a company with x number of employees works on average 30 or more hours the company MUST provide healthcare to employees working over 30 hours.
You can guess what happened. Those companies reduced hours to less than 30 on average for their employees and simply hired more warm bodies to fill their labor gap. Wow, guess what, reduced unemployment! So instead of 1 person working 35 hours, the company now has 2 employees working 17 1/2 hours. But hey, we’ve reduced the unemployment rate – those people are working MAN.
Suddenly the president realizes all those people need to make more money somehow. The employer can’t boost their hours or they would have to provide health care. So, here comes the push for raising the minimum wage.
Here’s what’s coming next. Retailers will need to raise their prices in order to pay the employees and still generate a profit for their shareholders. So, now the cost for goods and services goes up.
I’m sorry – what is that called? Oh oh yeah Inflation.
Guess what, the raise you want to give to minimum wage earners would be worthless because they would have to pay more for everything. But hey, in 3 years it will fall in someone elses lap.
No wonder he reminds me of Alfred E. Newman. What Me Worry?