Typically, when you hear of a fight to increase the minimum wage, it comes from a liberal Democrat. But as Washington always is, the sands have shifted a little bit. Republican Senator Josh Hawley of Missouri has recently proposed a bill to push the minimum wage up to $15 an hour. As you would expect too, it has become divisive among Republicans.
President Trump recently was non-committal when asked whether or not he would sign such a bill, adding "it is interesting [Josh Hawley] did that. You have to think about that one." Sure, on the surface, raising the minimum wage is a good idea. You increase wages and give more money to American pockets.
But there are issues that lurk beneath the surface to consider, which might make the idea not a great one. Especially in the modern technology era.
Sherif Mityas of BRIX Holdings says there is a fine line to walk.
"When you start increasing wages in industries that are historically low margin, and struggle with labor costs, you will put pressure on those corporations to further automate," he says.
The service industry like restaurants and retail come to mind especially. Raising minimum wage to $15 an hour in those areas could cripple people.
"They are either going to, unfortunately, have less people, or they are going to have to close their doors," Mityas says.
In his pushing of the bill, Sen. Hawley touted the idea as a 'populist position.' Which is a funny way of putting something that is very divisive among people.
On one hand, people would make more money. On the other, most people think if the government would stop wasting money, our economy would be in better shape. which would mean not needing to raise wages.
But what is populist is protecting the American dream. People are fed up, and they want to see change. As mid-terms approach next year too, it is not a bad political move to present something for the sake of appearances.
"To gain some more popular vote, and gain some favor by pushing the working man," says Mityas. "Really trying to create opportunities to show they are the party that is trying to help our working folks put more money in their wallet."
It is not the first time though that Sen. Hawley has done something most Republicans would not do. Just last week, he voted alongside Senators Elizabeth Warren and Bernie Sanders against legislation that would impost regulations on the cryptocurrency market. He has not commented on that vote.
Just goes to show the sands can always shift in Washington. Usually in whatever direction the wind of self-preservation is flowing.
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