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Meme perfectly captures the effect of minimum wage laws that liberals never talk about

Fuzzy Chimp

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.

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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'.

In this scenario, the government increased the supply of labor for these McDonald's jobs, while the demand is simultaneously shrinking because McDonald's will be looking to reduce their labor force.

Bang up job, liberals. The robots are gonna love you.

Who's going to get those $25 McDonald's jobs? Some will just be eliminated. The others will go to the most qualified individuals, probably people who were working different jobs before but now have an incentive to work the McDonald's job.

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Guess who loses out? The people's whose skills are worth $10 an hour. These will often be young people or those who need to gain work experience so they can increase their earning potential. Now they make the real minimum wage: $0.

'The real minimum wage is always zero.' — Thomas Sowell

Well done, everyone! You've hurt the very people you intended to help.

People who actually run businesses and understand basic economics see this clearly.

Democrats who want to be elected by making false promises probably understand this too.

These are the people most hurt by inflating the price of labor through minimum wage laws.

It's common for those of us who are older to say young people just don't want to work anymore. Well, they have to learn to work, and progressives are committed to pricing them out of the labor market from the jobs they need to gain work experience.

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That's how it be.

That's the other side of the coin. Sure, companies will look to reduce labor, but it will likely be a multipronged approach, including raising prices.

Hey, you now make more money, but everything also costs more. Congratulations!

Other Twitter users didn't think the idea of robots preparing their food sounded all that bad.

Let's be honest here: Nobody believes the milkshake machine is actually broken down, right? It's a pain in the butt to clean and they want to go home as soon as their shift ends. LOL.

We're on team 'Get Our Order Right'. Ha!

Yeah, the libs in the replies obviously didn't agree with the meme's conclusion … or economic realities, apparently.

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LOLOLOL! It's all in the messaging, eh?

You can't defeat the basic laws of economics with wishful thinking and good intentions.

***

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