In short, increasing the federal minimum wage is a political payoff to unions. How so?
Members of unions already make substantially more than the current federal minimum wage. But, many union contracts set baseline wages at a percentage that's above the minimum wage. Thus, increasing the federal minimum wage increases wages to union members which, in turn, translates into higher dues to the unions.
If Congress increases the federal minimum wage by 40%, as President Obama wants, the winners are unions. Bazinga!
- 1M jobs will be lost: 33% of small and medium-sized businesses will see their hiring plans negatively impacted and ~40 percent of businesses will fire employees.
- The increase to wages will be passed onto consumers who will experience rising prices.
If Congress increases the federal minimum wage by 40% as President Obama wants, the losers are workers and families who are forced to subsidize the increase.
As with so many important national issues, conservatives have the winning argument. The problem is that conservatives just don't seem to have the ability to make the winning, closing argument.
Let the discussion begin...
To read the Townhall.com report, click on the following link:
"The Real Reason Big Labor Wants a Minimum Wage Hike."