The Democrats are once again trying to jack up the minimum wage, with progressives in Washington pushing for it to be raised from the current $7.25 an hour all the way up to $25 an hour.
Minimum wage increases are often backed by leftists and used as examples of how they champion the working class, but economist Vance Ginn is warning that this could actually lead to fewer total workers rather than more higher earners.
Ginn explained: “It’s costly to have a minimum wage, because people often can’t get a job or lose their job because of the higher price you have to pay to have that worker.”
The fast food industry has become a prime example of this, with prices rising and employees at the counter being replaced more and more by self-serve kiosks.
Ginn also made the case that there’s no need to adjust the minimum wage, because hardly anyone even relies on it anymore. “Most people get paid a salary these days, and the average wage is closer to $35 an hour, not $7.25 an hour,” he said.
According to Ginn, raising the minimum wage wouldn’t do much more than make workers more dependent on the government and reduce overall productivity in the private sector.