Want to increase income inequality? Raise the minimum wageIn the age of robotics, employees are not so critical to a business such as fast food. And those chains large enough to automate will kill off lesser competition which has to pay $15 to employees.
"Undeterred, Cuomo turned to an unelected wage board to increase the minimum hourly wage for only fast food workers to $15.00. This increase will be fully phased in by 2018 for New York City and 2021 for the rest of the state.
Despite Cuomo's undemocratic and arbitrary tactics, it is no surprise that increasing the minimum wage is popular with the public. Anyone with a heart wants their fellow Americans to earn more. People also understand that supporting a family on $9.00 an hour is unbelievably difficult.
But supporting a family without a job is even harder. And, thankfully, poor families are not the norm when it comes to minimum wage workers. Over half of the 3 percent of American workers who earn the minimum wage are between 16 and 24 years old. Two-thirds work only part-time.
Minimum wage jobs are not careers. They provide critical work experience that school simply cannot teach for those who haven't worked before. If young people cannot get their first jobs, they cannot get their second or their third jobs.
While some workers will get a raise if the minimum wage is increased, this will come at the expense of cutting off opportunity for the young. Unsurprisingly, because the minimum wage makes it effectively illegal for employers to hire the least-skilled workers, the unemployment rates for teens in high-minimum wage states are higher than those in low-minimum wage states. The real minimum wage is $0 an hour, because employers always have the choice to let employees go, or not hire them at all."
And with the real minimum wage being $0, the ratio of inequality is actually $15/$0 = infinity.
When decisions are made based on a flawed narrative rather than (common sense)*(resources), the outcome will predictably be disastrous. Businesses will compensate with unforseen consequences, at least unforseen by the flawed Leftist narrative. Or perhaps they are intended, possibly as part of the ongoing inflation needed by the Left to accommodate their rampant spending, cash for power.