Monday, March 28, 2016

California Mexican serfs to get $15 per hour minimum wage

The minimum wage is inflationary even though employment is reduced.

Immediately upon passage, unions, the very same unions pushing for a minimum wage increase, make increasing the wages for higher than minimum wage employees a top negotiating priority with the justification to employers that they need to maintain the gap.

I know a lot of California liberals.  Being in favor of a $15 minimum wage increase is a matter of virtue signaling.  The Federal Reserve Banks wants wage inflation.  They think it is good for the economy in general.

Minimum wage people never close the gap as their prices go up along with the rest of the population and non-minimum wage people demand higher wages.  Middle management gets squeezed at first but they start switching jobs at a higher rate for higher pay.

It is futile but it makes you feel good.

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