How Business can survive the $15 Minimum Wage Hike

On Thursday, the U.S. House of Representatives voted to pass legislation that would raise the federal minimum wage from $7.25 to $15 over the next six years. These are the progressive plans that have the youth of America believing that working in a coffee shop is a career, and not a means to an end.

Malcolm X said it well in a speech at UC Berkeley in 1963, where he chided the white liberal as being the destructive force to the black people. The prophecy of Malcolm X has deleteriously hit the black community again in the form of eternal low wage jobs. The Raise the Wage Act was introduced to Congress by Rep. Bobby Scott (D-Va.) in January. It again proves that his education at Harvard, now a cesspool of lower learning, means little in the real world of business. The photo ops of Nancy Pelosi and other white women holding black children in glee only further support the Malcolm X thesis.

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There are actually learned men who are in the field of economics who would today support such theories that a minimum wage increase will disproportionally hurt the ones it is meant to help. An overwhelming majority of American labor economists agree that minimum wage hikes are an inefficient way to address the needs of poor families, according to a national survey of the American Economic Association (AEA).

Look, no one wants to see people struggle financially, but this socialist move of regulating the market price of labor will only exacerbate the situation of low-skilled workers. More than two-thirds of labor economists (68 percent) believe a mandated wage increase will cause employers to hire applicants with greater skills. This is where capitalism steps in and trumps government regulation. Simply, businesses will automate positions which are now performed by low-skilled workers, which was prompted by the very legislation set out to help them.

This is what is known as classical, or real wage unemployment. Classical unemployment is caused when wages are too high. This explanation of unemployment dominated economic theory before the 1930s, when workers themselves were blamed for not accepting lower wages, or for asking for too high wages. Research from David Neumark at the University of California at Irvine shows that for every 10 percent increase in the minimum wage, low-skilled unemployment increases by 8 percent.

Based on these results, the houses wage vote is bad news for African American teens who already suffer unemployment seven times higher than the rest of the nation. Your own liberal federal bureaucrats even agree. A recent report from the Congressional Budget Office concluded that a raise to $15 an hour would cause the loss of 1.3 million jobs. Statistics can be used by either side to put forth their agendas. However, business will do what business has to do to survive in a capitalistic system, which by the way, a majority of Americans still agree is the preferred form of economics.

While the Democrats have control of the house and this bill, they now pass the baton to the Republican-controlled Senate, where it is expected to face stiff opposition.

About John Thomas

John Patrick Thomas is a four-time cancer survivor who lives with his family in South Florida. John attended Gettysburg College and The American University before embarking on an entrepreneurial career on Wall Street. He turned to the teaching profession after his life-threatening bout with bone cancer. John has recently written a #1 Amazon Cancer Bestselling book entitled, “A Call to Faith, the Journey of a Cancer Survivor.” He has appeared in publications such as The New York Times, The Wall St. Journal, The Washington Post, Memorial Sloan-Kettering Cancer Center publications, and was featured in new DayStar network series, “Impact with Pastor Dave.” He has traveled as a missionary and may be one of the few people that tell you cancer was the best thing to ever happen to him. You’ll have to ask him why.


  1. Edouard D'Orange

    And, do democrats ever have an agenda. It’s called virtue signaling, a practice they are experts in, no matter the consequences.

  2. Charles Paradise

    I think the biggest fear business has is not the 15 dollar minimum wage. The fact is everyone else working hard or skilled labor will finally get the raise they should have gotten already. Also clerical will demand a raise. God forbid anyone being able to save a dollar. Eliminating the Risk Corridor and individual mandate for healthcare has already caused people’s living wage to go down.

    • As unemployment goes down and labor shortages start to occur, wages will naturally rise, and people who left the work force under the Obama administration start to come back. The more wages rise the more those people will re-enter, and the better the economy will be.

    • At least half of minimum wage earners are high-school or college students, many of whom are living at home. Within a year most of them, having gained some work skills and established a reliable work history, have moved on to other jobs with better wages.

      Many of the rest either can’t or haven’t bothered to gain marketable skills or haven’t shown that they can be reliable. Often it’s the latter. We have hired many people (nearly all at $12-15/hr) who can’t or won’t show up on time or sometimes don’t show up at all.

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