My Thoughts On Bernie Sanders: A Living Wage

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I’m sharing my thoughts on Bernie Sanders, and his platform is something I have not found a lot I can agree with. Today, I’m going through his Living Wage plank. Going through it, there’s a lot of stuff I know I’m going to have a lot of fun with, but overall, I see a lot of bad ideas, and a lot of harmful things for workers in the lower, middle, and upper class.

Let’s dive in, shall we?

#1. Raising the Minimum Wage

Proposed a national $15 per hour minimum wage.

This sounds nice and all, but don’t actually expect it to happen, or even be beneficial. This point is practically a selling point to most leftists. While some might question it going that high, the real bone is being thrown to the union workers and lower-wage workers. When I say this is a bone, I don’t mean a nice, beneficial, tasty bone, I mean a bone that looks nice, and may taste nice, but at the core, is rotten and will do nothing but harm.

Allow me to explain. Everytime the minimum wage goes up, a few things happen. The first is that some people are cut from their job, and are now unemployed. This isn’t something that can be avoided. This is an economic principle. You CANNOT avoid this.

Consider teenagers, who are just starting out in the workforce. Jere is unemployment among unskilled workers, which includes teens:

Now, this graph will show teen unemployment when compared to increases in he minimum wage:

And this graph will show raises in the wage compared to increases in overall unemployment. Not the correlating increases in the wage and unemployment, and when they happen:

Now, the big question: Why does this happen?

The supply for labor is being met with he demand for labor at an equilibrium point. The wage is the price of labor that both the employer and the employee have agreed to, either by negotiation, or by just accepting it in the beginning. This is where employers are capable of employing the maximum amount of employees, and the employee is okay with working for that set wage.

When a minimum wage is instated or raised, the equilibrium is upset. The graph above shows to lines on the y-axis: W0 is the equilibrium wage agreed upon where maximum employment is reached. W1 is the new wage that the minimum wage now set, and notice how it’s above where the supply and demand lines meet? I’ll explain everything in that triangle below, with this graph:

The triangle shown above the equilibrium point is what is now being pushed out of employment. On the x-axis, the first point, LD, is the Labor Demanded, or what the market can now handle. The point L is where it used to be, and the LS point is the number of wokers in a market looking for a job.

With the wage raised, the employers cannot afford to keep on as many people as they used to, due to a raise in the costs of production, to which, the wage, which is the price for labor, is included. Now, the market can only handle fewer workers, and thus, the amount it cannot handle anymore lose their jobs, and become unemployed.

To see this displayed out better, see this video:

Now, where is this seen today? To start, here are a few examples:

  1. Seattle, WA – Seattle raised it’s Minimum Wage to $15/hour recently. The effects? The American Enterprise Institute (AEI) reports that 1,000 restaurant jobs were lost, which is the biggest loss since the losses of the Recession back in 2009 (then it was 1300).
  2. In California, the Minimum Wage of many cities is set to go up from $9/hr or more, to $15/hr. However, the unions who fought for it, may have decided to change their tune on this. The Los Angeles County Federation of Labor buried within the proposals they presented to many cities an exemption that would allow employers to be exempt from the new wage hike. It’s curious to ask why this may be.

For more information on this, you should read this: [Link]

Bernie’s plan to raise the minimum wage sounds nice, but it will bring nothing good, for either employers or employees.

#2. Raising the Wage for employees of Federal Contractors

Led the effort to increase the minimum wage for federal contract workers to $10.10 an hour.

See #1 as to why this is a bad idea.

#3. More Unionization

Introduced the “Workplace Democracy Act” to strengthen the role of unions and the voices of working people on the job.

I feel like some bribery is going on here. Allow me to explain. The vast majority of donations from organizations and groups for Bernie is coming from Labor Unions, who do not have the consent of all their members to fund candidates or organizations. This bill would basically mean that Unions would become further entrenched back into the workplace, and raise the costs of doing business, as well as push some people out of the market.

The workers have a voice, and they don’t need a union to get things done, but Sanders is making it seem that without Unions at all, there’d be no progress, an idea that has been struck down already before. For and example of this, see the video below:

What this will do is make hiring more difficult, and firing nearly impossible, like with Teachers Unions in New York City or Chicago. Am I fear-mongering? No. I’m stating what has already happened.

#4. More Unionization (again)

As mayor of Burlington, was a strong collaborator with unions.

(sigh)

#5. Fight for $15

Leading the fight in the Senate for a $15 an hour minimum wage and a union for fast food workers, and federal contract workers.

See point #1 as to why Bernie is trying to hurt workers. I know Economics isn’t an interesting subject to many, but at least knowing it will do anyone some good in going about life, and making decisions.


 

I’m doing a series on Bernie Sanders, and all of those posts can be found at this link here, which will be updated every time I finish a new part of the series.

You can find that page here: [LINK]

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