This is Why the Minimum Wage Is Such A Horrible Idea

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In case you haven’t heard, the Oregon state legislature has recently approved a new minimum wage, and Governor Kate Brown has already agreed to sign it. This minimum wage law will be very different from the wage laws of most states, in that it will vary on a region by region basis. There will be gradual increases in each city and rural county until the year 2022. At that point, the city of Portland will have a minimum wage of $14.75, smaller cities will be at $13.50, and rural areas will be at $12.50.

But for all their good intentions, the leftists that pushed this legislation through have no idea what they’re in for. It will be rife with unintended consequences. Take for instance, what happened in Seattle shortly after their city council approved a $15 minimum wage. Before the wage increase even went into effect, restaurants all over the city crunched the numbers for what it would mean to their bottom line, and shuttered their doors. And for those who are still employed, the minimum wage increase hasn’t really helped them at all. Here’s what two cleaning ladies told the Seattle Times last year:

The cleaning woman responded, “It sounds good, but it’s not good,”

“Why?” I asked.

“I lost my 401k, health insurance, paid holiday, and vacation,” she responded. “No more free food,” she added.

The hotel used to feed her. Now, she has to bring her own food. Also, no overtime, she said. She used to work extra hours and received overtime pay.

“What else?” I asked.

“I have to pay for parking,” she said.

I then asked the part-time waitress, who was part of the catering staff.

“Yes, I’ve got $15 an hour, but all my tips are now much less,” she said. Before the new wage law was implemented, her hourly wage was $7. But her tips added to more than $15 an hour. Yes, she used to receive free food and parking. Now, she has to bring her own food and pay for parking.

It’s simple economics really, which apparently the purveyors of the minimum wage have no knowledge of. They artificially raised the price of services across the board, and look what happened? The businesses that couldn’t afford it either shut down or laid off workers, and the businesses that could afford it simply shifted some money around by eliminating benefits and putting those dollars toward wages.

Big surprise right? We’ll probably see the same thing happen in Oregon before these wage increases are enforced. Businesses owners in that state are saying and thinking the same thing the restaurateurs were saying in Seattle last year.

What the supporters of a higher minimum wage just don’t get, is that it hurts poor unskilled workers the most. They want to believe that it will help these people attain a livable wage, but it won’t. In fact, when states or cities try to raise the minimum wage, it often forces their low skilled workers to move to different states for better work opportunities. The minimum wage is a job killer that takes work away from people who need it the most. And in any case, those who do still have a job now have to pay more for goods and services in certain industries, now that there is no cheap labor.

It also sets the bar too high for workers that lack experience. Think about it. Whenever a business hires a new employee, they’re taking on a big risk. It costs money to train new people, and they have no idea if these people will work out. The less experienced they are, the more risk it entails, and thus they pay these workers less money to hedge those risks. With any minimum wage, it’s difficult, and sometimes impossible, for the newest members of the job market to attain their first work experience. Is it any wonder why all over the developed world, the youngest demographics have the highest unemployment rates? Surely this is a contributing factor.

To those that support a higher minimum wage, or any minimum wage for that matter, this isn’t rocket science. At the end of the day, some jobs simply aren’t worth that much money, no matter how much you pout about how unfair the world is. And when you set a minimum wage, what you’re really doing it outlawing all jobs that are worth less than that arbitrary amount.

It sounds pretty dumb when you put it that way, doesn’t it?

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Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger .

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  • bill lopez

    Liberalism is really a sickness.

    • Result of a weaponized media.

      • RandyJ/ProudSurvivor

        Yes-the MSM drives the bus of insanity. They are the intellectual suicide bombers of our time.

    • BW83

      I imagine psychologists would agree if so many of them weren’t of the same mindset, and that’s a quite scary thought.

  • Mike

    Why can’t these minimum wage morons figure out that if you want better pay you need to learn some skills and get a better job? Every freaking time you raise minimum wage jobs are cut, hours are cut, benefits are cut, and once all the cuts that can be made are made, prices go up thus screwing those already making above minimum wage by increasing their expenses without increasing their income thus pulling them further into poverty or near poverty levels.

    • Edithjbernard3

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    • BW83

      They can’t figure it out for the same reason they can’t figure out that minimum wage jobs were never meant to be careers honestly.

      The same thing that’s happened to literally every place that’s hiked the minimum wage will happen here…..and the people that begged for it still won’t be able to put two and two together as to why.

      If you don’t like your job, work your way up or work your way out. Simple really. The excuses as to why you can’t are just that, excuses. Plenty of people in the same or worse situations have made it work.

      Personally I see it as poetic justice. Sadly it will just increase government dependence though. For all the humor made of elected officials, they seem pretty smart to me. They’re playing chess while the people that elect them continue to play checkers.

      • Great comment!

        • BW83

          Thanks, that’s what I’m here for :p

          This is definitely one of those “sore spot” topics that I can’t let pass without throwing my two-cents in.

    • Wags71

      There are almost no jobs left.

      • Mike

        Actually, skilled labor jobs are all over the place. Plumbers and plumbers helpers, carpenters, masonry, welders, mechanics, electricians, and tech support that requires a person to physically be on the job site. Those are just a few.

  • frankw

    The statists really don’t care about the fallout to minimum wages. All they care about is that it sounds good to the plebes that elected them, who themselves don’t understand the inevitable result of political mettling in economic realities.

  • They believe in the money tree that doesn’t exist, only the fed can print for nothing which is why the fed needs to go!

    • BW83

      Other people’s money is a great thing until it runs out lol

      • Philosopher


    • Reverend Draco

      Wait a minute. . . hold the phone. . . hang on a sec. . . are you saying that my mother was wrong, and that money actually does grow on trees?

      • Only at the fed but I’m not sure if they have a tree 😉

    • Tallkiwi

      Not exactly true. Yes the fed does create money, but it’s the banks fractional reserve system that is the multiplier of that money.

      • Does the fed create it from nothing? Then it is a defacto money tree.

        • Wags71

          You’re both right, but banks print more of the money. The fed only expands its balance sheet with QE. Of course, they may as well all be the same thing.

          • Banks don’t print money, they lend it out 10-fold, it’s labeled Fractional-reserve banking.

          • Wags71

            Yeah yeah, that’s what I meant when I said print money.

  • Chef Sp

    OK..that’s fine. If you don’t want a min wage…then get rid of codes that tell people where and what they can or can’t build to live in. Go all socialist or go all capitalist…but not both. Fuck…any retard can figure that out…and I’m not even officially retarded

  • mirageseekr

    Ever notice how it is the employee that suffers the most whenever there is a hit to be taken? Just a thought but how about places that are corporate the stockholders take a little hit too? There would have to be protection for the smaller places, say under 50 employees, how about the large corporations that pay no taxes start contributing and smaller places get a break. I can’t believe that it is impossible to pay people a living wage and still profit as a business. Much like CEO’s making more in a week than their employees can make in a lifetime needs to be addressed and in my opinion capped based on percentages there could be a workable solution. What people also need to realize is that when people do not make a livable wage they get supplemented by tax dollars. Not all people are cut out to go to college and work in an office but before NAFTA those people could work in factories and make a good wage still. The solution is to change the horrid laws and tax breaks that companies are using to give our jobs away and instead of tax dollars being used to supplement workers demand that multi billion dollar corporations like walmart pay some taxes and a livable wage and cap the percentage given to stockholders. It is sheer greed by the 1% that is driving this problem and it is past time for the 99% to change it and not by driving even more mom and pop places out of business.

    • Philosopher

      Why not start talking about how much public employees get? If you want to talk about greed, start with public employees that can’t be fired and get huge pensions and are protected by powerful unions: at taxpayer expense, The greediest people in the world are public employees that suck off the government teat 24/7/365 even after they retire. Sure. Until the whole system goes up in flames. When that happens they can kiss those pensions buh-bye.

      • mirageseekr

        I hardly said everything should be distributed evenly. But I do think 99% of us are getting very screwed by the elite. I guess you enjoy living in times that are as unequal as they were in the middle ages?

        • It’s about to change for the better, I just watched a youtube video last night that was well researched, full of facts, and exactly explains this shift we are going through and how the elite are responding to it. It’s not for religious people as it exposes all of the religions but it further explained what I already knew a little about, I really enjoyed it, it’s an hour and a half but here is the 4 minute trailer:

          I especially like what Vamsi Krishna said.

          It has to do with the position of sirius, the dog star and dog is god spelled backwards. Everything is cyclical and we’ve been through this before. They think Earth is a sphere of which I do not believe but other than that the info is great IMO. Sirius is a fixed star that does not move in relation to the other stars so the sky itself must be in a certain alignment/position for this phenomenon to take place, and it is taking place right now! This is just the very beginning of much better times ahead… just not sure how bad it will get first.

          • mirageseekr

            I really hope you are right about that, I think it is going to get really bad first though.

          • It will, until we change it.

    • Tallkiwi

      I think you are forgetting the elephant in the room, who do pay the most money too? It’s the government! They tax each dollar at every point, your wages, your home, your car, your house etc. etc. that’s the problem!

  • whiteberry

    This is all part of the Agenda… less self-sustainability, Mom & Pop stores close giving the power to corporations. People moving out of rural areas to make “more money”, it is easier to lock down, and monitor, a city than it is a state. They are setting the stage for Martial Law and mass quelling of the worthless eaters. Once they’ve mastered AI we will no longer be needed, they will have slaves which do not complain and do not use their precious resources. They will have their utopia, we will not.

    • ahuxley

      Your take on this is very plausible.

  • RandyJ/ProudSurvivor

    Don’t you just love how liberals use the “rising tide lifts all boats” analogy when talking about minimum wage? When in reality, what these dubious increases actually achieve is, the further lowering of the middle class. They’re getting closer to making most of us “equal”. Of course, there are those who will be more equal than us.

  • Reverend Draco

    I like the sign, “I’m not lovin’ poverty wages.”

    My answer to that is, go learn new skills that are worth more than poverty wages, then leverage those new skills into a more-than-poverty-wage job.

    Good gravy, they act like flipping burgers is rocket surgery.

  • Eric Blake

    In Seattle, the other effect of this was the employees actually asked to work LESS HOURS so they wouldn’t lose their government benefits. Net effect: more people on the taxpayers dime, and more democrat voters.

  • Vlad

    What a crock of shit this article is. If you’re operating a business and the cost of something you need to run your business goes up, say the cost of potatoes for a restaurant, well the cost is going up for your competitors as well. Everyone will just raise the prices they charge to remain profitable. This is true for the cost of labor. The idea that there is a fixed value to unskilled labor is nonsense. All businesses have downed sized and outsourced every job the can. What jobs that are left are needed. The market will ajust to an increase in the minium wage just fine.

    • Tallkiwi

      Actually being a restaurant owner I can tell you what really happens. Before I’m forced to put prices up, and reduce my competitiveness, I have let go a third of my staff and rehired them on a contractual basis, not as employees. This means I don’t have to pay Medicare, pension etc. and can count them as an expense. Second is I look at cutting some ones job, usually the least productive or recently hired person.
      On another note if we all raised prices, as you suggest, the benefit of higher wages is quickly negated EXCEPT for those on fixed income, ie. Pensioners, etc., the most vulnerable in society, they have to pay more without the benefit of an increase.
      In New Zealand and Australia minimum wage is around $15 an hour, everything is expensive there and both parents have to work to afford to survive these days. Pensioners complain of making ends meet.

      • Vlad

        CEO compensation at the largest corporations has ballooned by 937 percent since 1978, when adjusted for inflation. A typical worker’s compensation grew a measly 10.2 percent over the same period.and yet no one complains that CEO pay is causing price increases and “pensioners can’t make end meet” because of it. We’re supposed to turn a blind eye to the huge increases in wealth of the 1% but only focus on not paying a living wage at the bottom. What BS!

  • Philosopher

    If you want to buy or sell produce in your area, this site is a great way to connect. It was on the Corbett Report yesterday.

    In my area I found eggs, tomato starts and herbs for sale. P2P go!

    • Awesome, thank you!

      • Philosopher

        Please just pass the link to others! It was an accident that I even found the link, I read a lot of news sites and this one just put a smile on my face!

        Good news for a change 🙂

    • Razedbywolvs

      There’s FREE grapefruit in my area!

      • Philosopher

        Grats! Way to go! Please pass on the link to others!

  • Wags71

    You know what is so much worse than a minimum wage? All the trade deals that made people rely on minimum wage jobs to live because all the jobs disappeared. You used to be able to support yourself quite well as a blue collar worker with a high school degree in Anytown, USA. All you had to do is work hard. Now there is no option for doing that for a huge percentage of the population.

    And then people look down on them as lower class citizens because it’s easier to collect social security disability instead of working 3 15 hour per week jobs with multiple 3 hour shifts per day. Our government decided this was best for America and yet the politicians don’t get blamed, just the people living in supposed luxury for about $1200 a month with $200 in food stamps to provide shelter, food and clothing for a family. You try that.

    So this talk about minimum wage is really annoying. It’s the wrong question.

  • SP_88

    These people are working at jobs intended for teenagers to start at. All the good paying careers are either filled or cut back by companies looking to lower operating costs or the company went out of the country to hire cheap labor. The rise of the population because of the flood of illegal immigrants as well as the natural increase has not seen an equal increase in the number of jobs. Fewer jobs were created than we lost. Most of the jobs we lost were good paying jobs. Most of the jobs that were created are minimum wage jobs intended for teenagers.
    Because these people who have these unskilled labor jobs are adults with families and children, they need to make more money to survive. But many of these adults have a high school diploma if they’re lucky and they have no other job skills or a trade. There was a time when a high school diploma was all you needed to work for $18.00 an hour at a factory or whatever and make a good living. But now you either have a skill or trade or a college degree and can earn a good living if you can find a good job, or you are an unskilled worker and you make minimum wage. And as long as minimum wage is less than what a skilled worker earns, everything is ok. But if they raise minimum wage as high as what skilled workers earn, it will throw everything out of balance. The cost of living will go up for everyone, offsetting any increase in pay for unskilled workers and defeating the purpose of the increase in minimum wage, and it will also screw the people who earn more than minimum wage because they don’t get a raise when minimum wage is raised. Companies will be looking to offset the increased cost of things and they will raise prices for the customers, lay off workers, trim or eliminate benefits and anything else they can do to avoid having to cut the pay for their executives and CEO’s.
    Whatever happens, the wealthy people will be the last ones to lose money.