Michigan Dems want to hike minimum wage

-Jarrett Skorup

As if things in Michigan aren’t bad enough.

According to the Free Press, the Michigan Democratic Party intends to test support for the following issues before possibly putting them on the ballot:

  • Hiking the minimum wage to $10 an hour for all workers.
  • Imposing a blanket moratorium on home foreclosures for 12 months.
  • Cutting utility rates 20% across the board.
  • Requiring all employers to provide health care to their employees.
  • Hiking, by $100 a week, and extending, for six months, unemployment benefits.

Undoubtedly, if they get to a ballot before people, these will be passed.  But the reasons are because many of us think with our hearts instead of our heads, and don’t realize the faulty logic that backs these proposals.

Most economists understand that raising the minimum raise does tremendous damage, particularly to lower-end wage earners and small businesses.  A higher minimum wage locks out small-businesses that can’t afford to pay it, forcing them to layoff workers and combat higher labor prices. 

Remember when Philip Morris joined with the Obama Administration to sign the ““Family Smoking Prevention and Tobacco Control Act,” giving the Food and Drug Administration authority to regulate tobacco?  Do you think that was out of the goodness of their heart?

Well that is exactly why Walmart lobbies for a higher minimum wage.  They already pay well above the national minimum wage anyways and this helps keep out competition and increase their market share.

Many times people (particularly conservatives) mistake the terms “business-friendly” and “free market.”  Frederic Bastiat said that what separates a bad economist and a good one is that the bad looks at the seen, while the good also takes into account the unseen.  The unseen are the Detroit small-business owners and those low on the economic totem pole; the Democratic platform will crush them.


One thought on “Michigan Dems want to hike minimum wage

  1. The minimum wage hike is also looking to remove some exceptions to the wage law. Currently restaurant wait staff can earn less than minimum wage because they receive tips on top of wages. Removing that restriction would in effect cause wait staff to have a higher minimum wage than other jobs.

    I already have friends who are waiters and have been hard hit by low traffic in their restaurants this summer, causing their employers to send them home early on numerous occasions. I don’t see how they and others like them will be able to keep their jobs if these proposals pass. Employers will have a much greater incentive to avoid over-staffing.

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