Wait, What, Huh?
Once again, we see the true intellect of some people. So, there is this governor in a certain state (idiocy, unreasonable, brainlessness, I could go on…). CA is the place to be! I hear the wages there are going up for many people to enjoy the good life and to live better than the unfortunate folks making far less in other states. Sounds like a fairy tale (Hollywood is in that state you know).
If there is a need to see how bad things can get, we can use this state for the barometer! Now that everything in CA is outrageously expensive, they up the minimum wage to $20 for certain workers and up to $25 for healthcare workers because they can’t survive on the $15 per hour state minimum wage! That sounds awesome for the workers until….
The cost of products is in fact much higher in CA than most areas. Housing is ridiculously expensive, and food costs at grocery stores (that haven’t shut down to avoid high crime) are enough to make anyone choke. I’m not saying this utopia should be avoided by all, just the ones who have sense enough and don’t feel the need to live the lavish life most residents there do. If unskilled labor employers are forced to pay $20 per hour, then what does a skilled laborer make?
For those of you who have the slightest knowledge about economics, THIS DOES NOT WORK in the real world! Yes high wages are nice, yes making more money is nice, and yes people should earn a living wage (for skilled workers at a full time position). All of this has to do with the high cost of living, and unfortunately it will be coming to a town near you very soon! If the minimum wage was set at $20 per hour, which is $12.75 higher than the national minimum wage, EVERYTHING will just go up 62%! Wait, what?
That is correct, the difference in minimum wages for the national average of $7.25 (which very few people actually make) and $20 is 62%. Now, let’s buy some automobile gas, groceries, pay rent, buy a car, pay insurances, and all other costs for living TIMES 62%. Don’t forget those of you working for $20.01 WILL NOT get a raise to match the wage increase for the other workers. Sounds fair to me (NOT). Here’s an example: if you make $20.01 per hour you get $800.40 per week, minus 30% for income taxes ( for now). That will be $560.28 take home and if you use that money to buy anything, you will pay an additional tax of around $56 (assuming you spend like most people). That said, you will have $504.28 per week to make ends meet. $2,185.21 per month is what you have to spend. Another assumption is that your spending is low enough that you have $300 per month going back into savings (laughable assumption, but some people do). And, so $1,885.21 is what you have to buy Everything you need to get by! Oh, and NO credit cards (you will be homeless faster using one).
Now, thanks to those who forced employers to raise minimum wage so they could survive better, just raised the base cost of goods 62%. THANKS FOR NOTHING!!! Your $1885.21 is now covering $1,168.83 more in expenses than it did before all this took place. If your monthly expenses can be cut to $716.38 before the increase, you will be even! Now those who were screaming for a living wage now find themselves cursing the “greedy” businesses for raising their costs and they once again can’t afford their lifestyle and therefore demand another raise (and it goes on and on). So before the majority demands to get a raise, consider what it encompasses for the greater population. Oh, and did I mention those on a fixed income now can afford even less than they could before (which will result in a massive decline in the population of those on fixed incomes, either by death, or they will be forced to get jobs earning low wages).
