Thursday, February 14, 2013

Why Republicans Should Consider Punting on the Minimum Wage

It's simple. Low information voters are too ill-informed to understand the outstanding, rational and logical arguments against raising the minimum wage. You can't tell these people that when you increase the price of labor, people buy less of it. They look at you like you are crazy.  Their understanding of economics is abysmal. When you tell them businesses will increase prices, they think you are insane.  These people, who have obviously never had to make payroll, say things like "if a business can't afford to pay $9 per hour, it shouldn't be in business."  I guess the guy mowing lawns should just shut down and fire his 5 employees. 

Or they will say that increasing the minimum wage will make the person that earns the minimum wage more productive.  Really? How?  They are utterly clueless. When you ask them, "why not raise it to $25 or $50 or $100 per hour," they look confused.  I mean, if $9 is good, $50 must be better, right?  These people will never get it. They lack intelligence, which is why they are in the minimum wage zone to begin with.

Republicans should just punt on the issue and let these idiots reap the consequences of their actions. It's a losing issue. It allows the Democrats and their fellow travelers in the media to paint Republicans as non-caring, evil, etc. It allows them to do it on a periodic basis.  By increasing the minimum wage and indexing it to the low level of inflation that social security payments are increased, the issue is taken off the table for good. Let the Democrats own the higher unemployment that comes from it in the short term, and in the long term, the issue goes away. 

Alternatively, the Republicans might want to just go all-in and propose a $20 per hour minimum wage.  Then, let the Democrats explain why that would be a bad idea. Put them on the ropes and make them explain the logical limits of their proposal.  If it passes, blame Obama and the Democrats when unemployment goes through the roof.  It will be painful in the short term, but prices will ultimately increase across the board and equilibrium will be reached once again.  As Jesus said, you will always have the poor.

I'm no Republican strategist, but what they are doing isn't working. Republicans are, as usual, battling the media on this issue and it just isn't worth it. There are bigger fish to fry. 

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