twitchy.com By FuzzyChimp
Liberals always push for increases to the minimum wage without acknowledging the unintended economic impacts these changes would inevitably cause.
This meme from Declaration of Memes captures exactly what happens when you artificially inflate the cost of labor, companies adjust to offset the increased cost. They’ll cut jobs, raise prices on customers, or automate. Maybe all of the above.
— Declaration of Memes (@LibertyCappy) July 16, 2023
In his classic work, Basic Economics, Thomas Sowell explains it this way:
By the simplest and most basic economics, a price artificially raised tends to cause more to be supplied and less to be demanded than when prices are left to be determined by supply and demand in a free market.
What does this mean for the McDonald’s worker in the meme? If the government forces McDonald’s to pay $25 an hour when the value of his labor is actually $10 an hour, hordes more people than currently want to work at McDonald’s are going to say ‘Hey! I’ll work at McDonald’s for $25!’. At the same time, McDonald’s is going to say ‘We have to meet our profit margins, so we either need to raise prices or reduce labor’…
READ FULL ARTICLE HERE… (twitchy.com)
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