Shall we raise the minimum wage to $15.00 an hour?

Let’s imagine how that would play out: Jack works at McDonald’s for $7.50 an hour. He sells burgers to customers for, say, $1.00 each. Jack gets a forced raise to $15.00 an hour. Jack wants a burger for himself. It now costs him $2.50.

Jack instead gets a pay-cut to $3.00 per hour. Now Jack can buy his burger for two measly quarters.

Profits are calculated as a percentage above costs. Companies will not sacrifice those percentages. When threatened, they raise them. And any cost reductions never, I mean NEVER, bring prices down to where they once were. The profit percentages simply rise. See how it works?

Raising the minimum wage sounds great, but it is all smoke and mirrors. And expensive all around.

Politicians love promoting “fixes” that can’t work. Any questions?