Talking with my cousin about the Democrats wanting to raise the minimum wage and I realized something last night, but does this make sense or is this too conspiracy theoryish?
If the current minimum wage was say $10, if you raise the minimum wage to $15 dollars, within a few months the prices and economy will adjust to everything costing more. For example in Australia a McDonalds worker makes around $60,000 a year, but everything is more expensive, food, drink, housing, vehicles, etc. So that worker in Australia can say yeah I make $60k, but he does not have a higher standard of living than a McDonald's worker in Ohio.
So the minimum wage is raised to $15 an hour, within 6 months to a year the cost of everything scales up. So the guy (who I will call Mr. A) who was making $20k is now making $30k, but his purchasing power has not increased in the slightest. More than likely it is even less because his hours would be cut or laid off.
Now lets look at the skilled labor factory worker (Mr. B) down the road from him. This guy runs a large press, and makes $20 dollars and hour, when the minimum wage was $10 he made $10 an hour over minimum wage, enough money in a small town that the wife doesn't have to work, they can own a home and maybe put some money away. But now that the minimum wage has gone up he is only making $5 an hour over minimum wage, which means his purchasing power has been reduced by 25%. So yes he makes $40k a year, but with adjusted purchasing power he only makes $30k, while Mr. A is making $30k but once adjusted is only making his original $20k.
I think the leadership of the democratic party is pushing for a higher minimum wage to further drive the nail in the coffin of the middle class. With this move that is seen by millions as them trying to lift the poor out of poverty, it is actually just a cleverly disguised maneuver to widen the gap between the rich and the poor. Driving more people into poverty and more people to the democratic/socialist/communist platform. Kill the middle class and make the U.S. just like all the other third world countries, where you have the dirt poor and the ultra rich.
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