This article was published by The McAlvany Intelligence Advisor on Wednesday, July 10, 2019:
Having never learned, or conveniently forgotten, the “law of unintended consequences,” House Democrats are poised to pass their Raise the Wage Act next week. If passed into law, it would more than double the present federal minimum wage of $7.25 an hour to $15 an hour. It would be staged in, reaching $15 by 2024.
It’s because those workers (and Democrat voters, it is assumed) “deserve” it. Rep. Steny Hoyer (D-Md.) said that, “Americans who work hard deserve to afford a middle-class life and deserve opportunities to get ahead and help their children get ahead.” The first fallacy immediately appears: What if they don’t? What if their work isn’t worth paying them $15 an hour? Democrat answer: Give it to them anyway.
House Democrats were doubtless overjoyed upon learning that the Congressional Budget Office (CBO) came to their rescue, reporting that mandating that employers pay their people at least $15 an hour, starting in 2024, would boost the pay of an estimated 17 million workers and “could” also raise the pay of 10 million more workers already earning close to $15 an hour. It would also, said the CBO, lift 1.3 million workers above the poverty level.
Ignored were the other costs, including,