Raising the Minimum Wage for Working Men and Women in California and the Rest of America

Raising Minimum Wage Cuts Welfare Spending…Big Time

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Businesses that pay low wages are using the taxpayer to foot the bill by keeping their employees under the poverty line, rendering them eligible for welfare programs at an annual cost of $250 billion…quite cozy. The Heritage Foundation estimates we spend $900 billion per year from over 80 programs providing medical, cash, food, housing, etc., to about 100 million low-income families. In short, we the people are subsidizing many mega corporations, where they’re sucking up more money from the government than they’re paying in taxes. Even conservatives like Bill O’Reilly and Phyllis Schlafly are calling for a time-out and raising the minimum wage.

Ron Unz is a wealthy conservative financial-services software entrepreneur who is advocating for a $12 an hour minimum wage that will elevate millions of full-time American workers into middle class earning status at $25,000 per year, slashing free-ride subsidies
now enjoyed by companies employing low-wage workers. The subsidies come in the form of the Earned Income Tax Credit (EITC) and food stamps, of which these now higher paid employees would no longer be eligible, and at the same time they’ll be sending more tax revenue to the federal treasury.

The higher hourly rate would increase these poverty household’s incomes to the tune
of about $150 billion dollars a year, whereby they will be pumping it right back into businesses in the form of purchases—an economic stimulus funded by the private sector. Truly a win/win scenario for everyone. According to Unz, with a minimum wage $12 per hour, Walmart would only need to increase their prices by a mere 1.1%—an extra $12.50 a year for the typical shopper—a McDonald’s cheeseburger would increase by only a dime to cover company costs, and American produce would rise less than 2%, and we would no longer be paying the hidden subsidies these companies are basking in.

Then there is immigration. Americans won’t take the jobs illegal immigrants will gladly take, for the simple reason that wages are much too low. Whether you like it or not, that’s a fact. Increasing the minimum wage to a livable level of $12 per hour will dramatically increase the influx of Americans applying for the same jobs as illegals, where businesses would most likely gravitate toward hiring English speaking Americans instead, causing illegal immigration to fall substantially because of the new fierce competition. And, any layoffs due to the increased wages would fall mostly to the low-skilled illegal worker. Another big win for the country. Right now, the subsidies for the EITC and food stamps adds up to about $14,000 for each illegal household after taxes. Doesn’t seem to me a winning strategy for the people or the country.

• Category: Campaign, National • Tags: Joe Arrigo