A Heritage Foundation study examined what would happen to the workforce if Hillary Clinton and her progressive friends were able to enact the nation-wide $15.00 minimum wage idea she stole from Bernie Sanders. And it ain’t pretty.
Heritage’s approach was different rather than look at it on a national basis, they examined what would change on a state by state basis. When the the state results are aggregated we learn that the progressive’s $15.00 minimum would put between 7 and 9,000,000 Americans out of work.
In Congress, Senator Bernie Sanders (I–VT) has introduced the Pay Workers a Living Wage Act, which would raise the federal minimum wage from $7.25 per hour to $15.00 per hour over four years. Prominent Senators, including Assistant Minority Leader Dick Durbin (D–IL), have co-sponsored this bill. The Democratic Party has formally included a $15-per-hour minimum starting wage in its 2016 campaign platform. If the policy became law in 2017, the federal minimum wage would rise to $15 by 2021.
Companies hire workers when the additional earnings their labor creates exceeds the cost of employing them. Starting wages of $15.00 per hour mean full-time employees must create at least $38,700 a year in value for their employers (including wages, employer payroll taxes, and Obamacare-mandate penalties).Such a high hurdle would make it much harder for less-experienced and less-skilled workers to find full-time jobs. Many of these workers are not yet productive enough to create that much value for their employers and businesses will not hire them at a loss.
Consequently, many businesses might respond to a $15 mandate by eliminating positions, cutting hours, and looking for new ways to implement labor-saving technology. Some companies might have to face shutting down or leaving America entirely to cope with the additional expenses.