Democrats Keep Pushing Minimum Wage Hikes Amid Industry Concern

Once again, the Democrats are at it in the state of California. Despite pleas from businesses and industries to not raise the minimum wage any more, Los Angeles has passed a $30 minimum wage hike. Hotel owners in particular in the city are sounding the alarm amid what they call "struggles with profitability." Yet despite pleas from businesses, and data proving the idea is bad, Democrats just keep pushing the same old thing.

Their argument tends to stem from helping the American people. That this will put so much money in employees pockets. Completely ignoring the consequences of taking such an action. Businesses in low-margin industries, especially in leisure, cannot afford such high wages without going into the red. As a result, people cannot have jobs when the business does not exist anymore.

Economist Joel Griffith says ironically, too, this actually does the opposite of helping workers.

"When you artificially increase that minimum, you end up pricing lower-skilled workers out of the marketplace," he says.

That is what all the data says. Not to mention, you open up the possibility of moving to more automation as a result. Which means less available jobs and more unemployment.

The intent to help is there, but Democrats cannot seem to grasp that this is not the correct way to do it. Their push for it now is mostly due to pandering and blatant ignorance.

"We have an incredible amount of economic data that shows there are negative consequnces of increasing the minimum wage," says Griffith.

The recently passed ordinance mandates hotels must raise their hourly wage by $2.50 each year until they reach $30 in 2028. Which is chaotic considering the Summer Olympics will be held in Los Angeles in 2028. That could leave many hotels strapped for cash, even if there is millions due to an influx for the games.

But raising the wages does not magivally increase employment, or benefit the worker. If anything, it is an across the board negative for all involved.

"When you increase these minimum wages, you end up with fewer jobs for lower skilled and less educated employees," says Griffith. "You keep them in this cycle of dependency and deny them the chance to earn better livings for themselves in the future."

Yet Democrats continue the cycle of pushing this idea that they are saving the American people. In reality, they are driving the American people into the ground with their ideas.