Actually the Lowest Wage Personnel Out of Function

[Abdul Wahab]

Proponents of the absolute minimum wage increase say it will not affect jobs, corporations or small businesses adversely. Well, Perhaps a slight escalation in minimum wage wouldn't and it would keep the masses happy, but it won't be a net positive, every little increase will affect businesses, profits, capital investment and jobs. Let's talk a bit about economics 101 and then allow me to light a fire under your rear with an automatic future reality if minimum wage increases are too drastic.

First, when you raise the expense of labor for small entry level jobs, you will have fewer of them as businesses raise their prices and clientele evaporates, some businesses will close, fewer jobs. The businesses and business models that survive will absorb those costs with rate and price increases to customers - this results in inflation therefore your dollar will undoubtedly be worth only a little less, simply how much is hard to state; 10%, maybe 20%, which will be about simply how much the minimum wage increase would be from what it's now if it went around let's say $10.00.

Some have suggested - Hillary Clinton, The DNC, President Obama, Bernie Sanders, that it should really be raised to $15.00 per hour, ouch, this may close car washes, retail stores, small businesses, junk food restaurants and it may cause companies to automate and ditch their labor costs all together - you think I'm blowing smoke - Nope! Let me give you an example of where that is happening right now.

You see, there is a fascinating article in Business Insider Tech News titled "Foreign robotics companies find success in China," written by Jonathan Camhi published on September 22, 2015 which stated:

"So robots must take on a larger role in the assembly line. A lot of robots deployed on Chinese factory floors will be foreign-made though, according Flexiv Chinese $100M Series meituanliaotechcrunch
to Reuters. Despite government efforts to push the country's robotics industry forward, foreign robot manufacturers still have a significant lead on the market for manufacturing robots in China. Foreign companies built 41,000 of the 56,000 industrial robots currently deployed in China, in accordance with statistics from the International Federation of Robotics cited by Reuters."

Notice the use of "deployed" instead of "employed" and consider how that could change in the near future. Remember China's labor costs are only a few dollars a day and they're rising ever so slightly, and they already observe they are able to cut costs, you believe that wouldn't happen here if we get yourself a 40% escalation in minimum wage overnight by Federal Government decree usurping our personal right to free contract? Think of it.