Imagine you’re an employer of 12. Entry level requires little specific skill or secondary education, but, with a good work ethic, employees can, and do, develop new talents that add value to your product, and are rewarded with higher pay and responsibilities.  The distribution of your employees’ duties is four tiered with pay as follows:

Entry level:  $12/hour

Basic skills:  $15/hour

Advanced:   $20/hour

Expert:         $25/hour

Your payroll before employer taxes is $288,000 a year.

Now imagine what happens when Joe Biden, who seemingly knows your business better than you, orders you to raise your entry level wage to $15/hour, a 25% increase, adding no additional value to your business or its products.

To maintain comity and continue to recognize all of your employees’ efforts you have no choice but to raise each employee’s wage by 25%.  Therefore, your new pay scale is:

Entry level:  $15/hour

Basic skills:   $18.75/hour

Advanced:    $25/hour

Expert:          $31.25/hour

Your new payroll before employer taxes is $360,000, a $72,000 jump . . . all in one fell swoop and before additional government-imposed costs – taxes!

You are left with only a few options: Reduce your own income to absorb the new costs; increase prices; or likely a combination of the two, while you hope and pray – unless you’re a “Progressive” – that your customers won’t finder a cheaper supplier or simply conclude that they no longer need your product.

Further, you ask, “Why do unions favor the increased minimum wage? Doesn’t it challenge the benefits they have bargained for aggressively?  Aha, you ask because you don’t know that union contracts bear language tying wages to the Federal Minimum – if it rises, their negotiated, contracted wage rises without discussion, driving up costs though all the economy, automatically!

Add to this, the 1,400,000 to be lost according to Congressional Budget Office and what Slow Joe did to the union steam fitters and others with his Keystone shut-down, and you are guaranteeing economic chaos, inflation as more dollars chase the same goods, and the Left will screech that only they are uniquely gifted and able through more government to solve the problems they create!