We’ve got a tail of two ideologies.
On the one hand you have former President Trump proposing putting money back in the hands of Americans and removing legislation.
It has been widely reported that Trump has proposed to pass a law through Congress that would no longer tax tips given to service workers.
Now, the Biden team has responded with their plan, but it imposes more government, and we are in real time watching destroy a blue state.
A major proposal has been put forth by President-elect Joe Biden on raising the national minimum wage to $15 an hour. While that may initially sound appealing, there are suggestions that this move could lead to over 1.3 million Americans losing their jobs.
Biden recently announced a sizeable spending plan worth $1.9 trillion, intended to combat the economic fallout from the ongoing pandemic. This plan encompasses a range of measures, such as additional funding for vaccine distribution and financial aid for cities and states severely hit by the virus. But one measure has particularly caught everyone’s attention – the proposal to raise the minimum wage.
Biden has consistently championed this wage increase since his early days on the campaign trail. He argues that the economic crisis resulting from the virus presents the perfect opportunity to enact this change. In Biden’s view, “Nobody working 40 hours a week should be living below the poverty line.”
He notes that even states with significant political divisions, like Florida, have approved a raise to $15 an hour. This, he believes, sets the stage for the rest of the nation to follow.
However, here’s the caveat. This proposal, while intended to alleviate economic hardship, potentially could have the reverse effect, as per a study conducted by the bipartisan Congressional Budget Office (CBO) in July 2019. The study discovered that boosting the federal minimum wage from its current rate of $7.25 an hour to $15 could result in more than 1.3 million jobs being lost.
The CBO reached this estimate by considering how employers might react to the wage increase. They observed that a substantial portion of minimum wage jobs exist in the retail and service sectors, where employers might reduce staff to cope with the increased costs. Economists anticipate that employers, particularly in these sectors, might pass the increased costs onto consumers.
Additionally, we’ve all seen what’s happened in California since Newsom imposed the $20 per hour wage law in the food industry.
It has been devastating.
Instead of pushing proposal’s that would drive down inflation and get costs down Biden wants to impose more regulation.
