Economics Politics

Seattle’s New Minimum Wage Hike Already Causing Havoc

The city of Seattle recently decided to raise the minimum wage within the city to $15 an hour. This move led to cheers from the left and consternation from the right. Fortunately, Seattle is a pretty liberal city so the voters there will have to lie in the bed of their own making… while we conservatives on the outside can learn from their mistake.

There is already evidence that the move to raise the minimum wage is doing exactly what conservatives predicted it would do – drive up prices. Here it is…

receipt

Northwest Watchdog called Masterpark to verify the authenticity of the receipt. Kevin, the attendant on duty Wednesday afternoon, confirmed the charge is real. To deal with the higher wage, enacted on Jan. 1, Masterpark is charging customers an additional 99 cents per parking day, a surcharge that comes on top of all other taxes and fees. 

It’s not hard to understand, it simply takes some honest logical thought.

minimum wageIf you raise the minimum wage on businesses, that means the cost to operate rises, in some cases dramatically. If you are a business owner who is used to operating at a certain level of income, what would you be more likely to do: a) accept the new much lower level of income or b) find a way to counter the new higher cost of operating so that you can continue to make something close to what you were making before?

A profitable businessman will choose to try and remain profitable (choice b).

How will he accomplish this? He will either cut employee hours, cut employees, or raise prices… or some combination of those choices.

The Masterpark receipt shows that they have started by raising prices. The next step may very well be to cut employees or employee hours and mechanize. A parking garage does not necessarily need employees to operate – they could simply go with a computer that dispenses tickets and takes payment. I would bet that Masterpark will use this new rise in the minimum wage to both raise prices and cut employees.

In a sick and twisted socialist way this move to raise the minimum wage could actually help companies like Masterpark make more money, while making low income workers poorer. How? Materpark fires workers and replaces them with machines, but keeps the price increase that the new minimum wage gives them cover to pass on to their customers. In essence making the customer pay for new higher wages that Masterpark doesn’t actually pay…

Do you see what happens when you don’t think before you act, liberals? You make things worse.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com


About the author

Onan Coca

Onan is the Editor-in-Chief at Liberty Alliance media group. He's also the managing editor at Eaglerising.com, Constitution.com and the managing partner at iPatriot.com. You can read more of his writing at Eagle Rising.
Onan is a graduate of Liberty University (2003) and earned his M.Ed. at Western Governors University in 2012. Onan lives in Atlanta with his wife and their three wonderful children.

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