Democrats are completely detached from reality.
They have convinced themselves they can enact any policy and always get their desired outcome.
Now, The View co-hosts have come up with a brilliantly dumb proposal to “fix” Joe Biden’s economy.
Americans are suffering the consequences of President Joe Biden and Democrats’ radical left-wing agenda.
President Biden thought he could pump trillions of dollars into an overleveraged economy, shut down businesses, pay people not to work, destroy American energy production, and still, somehow, have a positive economic result.
It turns out that reality and economics are quite stubborn.
And the radical left-wing hosts of The View came up with a “novel” idea to alleviate Americans’ suffering: just pay people more!
The hosts advocated for raising the minimum wage to an eye-popping $26 per hour.
The level of economic analysis Democrat politicians are capable of isn’t much more sophisticated than that mind-numbing discussion.
First, almost nobody in America works for minimum wage – just 1.9% of working Americans work at that rate, which is down dramatically from 13% in 1980.
Second, the real minimum wage is zero.
Forcing companies to pay a $26 minimum wage would cause unemployment to skyrocket as most businesses would not be able to afford such an insane rate, particularly in areas outside of major metropolitan cities where the cost of living is significantly lower.
There are decades of economic data that show artificially raising the minimum wage, especially so dramatically, leads to higher unemployment, particularly among low-skilled labor that need access to those jobs the most.
In recent years, leftists have tried to argue that jacking up the minimum wage does not lead to increased unemployment, but they are basing that off jurisdictions that slightly increased the rate, not a federal rate hike that would double, or even triple, the minimum wage.
Also, left-wing analysis is misleading because the businesses analyzed in the studies they pointed to simply defray the cost of a minimum wage increase by slashing employees’ hours and/or benefits.
Labor is easily the biggest expense for most companies, particularly small businesses, which employ nearly 50% of all American workers.
There simply aren’t many employers who could afford a 300+% precipitous increase in their labor costs.
Perhaps the most comical bit of the conversation was when Whoopi Goldberg suddenly realized that cutting taxes could be a good idea.
For the sake of the nation, hopefully, she’ll forward that message to her friends at the Democrat Party, because they’ve apparently never received that memo.
Democrats live for taxing the absolute hell out of the American people.
If Democrats want to raise wages, they could cut taxes, decouple insurance from employers, and slash regulation.
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