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February 5, 2021

President Biden and Congressional Democrats keep calling for a national $15-an-hour minimum wage, ignoring the devastating consequences for already-struggling small businesses and unskilled workers whose jobs will disappear if they’re priced above market value for labor. They insist that despite years of evidence to the contrary, arbitrary government wage increases don’t kill jobs.

Well, here’s the latest example of politicians who know zip about business ordering higher wages and having it blow up in their (and everyone else’s) faces.

The city council of Long Beach, California, decided to honor grocery workers who worked through the pandemic by ordering supermarkets to give them “hero’s pay” of a $4-an-hour raise. Since the minimum wage there is $14, one of the highest in the US, that means the lowest-paid worker would be getting $18 an hour. The politicians there (whom I assume have never run a business, and certainly not a supermarket) declared that large corporations are making record profits and should be forced to share the wealth with their workers.

So Kroger, the parent company of Ralph’s and Food 4 Less, announced that 25% of their stores in the Long Beach area would be shutting down. Criticized for doing this when the corporation was making strong profits, Kroger replied that many of the local stores were already struggling to stay open (supermarkets operate on notoriously slim profit margins, while the new raise would have increased the stores’ labor costs by 30%.)

I agree that the people who worked through the pandemic are heroes who deserve to be celebrated, but the Long Beach city council, through its cluelessness about private enterprise, just “honored” a lot of them out of their jobs. All things considered, I think they might have preferred a parade instead.


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Comments 1-2 of 2

  • Vickie Fiorentino

    02/07/2021 08:36 AM

    This is ludicrous! They will put these people out of business or a slew of layoffs! There are a ton of MORONS running this country from to to bottom!

  • Robert Berger

    02/06/2021 08:20 PM

    Governor Huckabee, if employers do not pay their employees enough, they will be forced to rely on government assistance- food stamps etc . This is a drain on government funds .
    This is exactly why so many Americans are struggling to stay alive and earn a decent living . And why so many people are stuck on welfare, because there are not enough good jobs in America .
    Welfare doesn't keep people dependent on the government - lack of jobs does this , and lack of jobs that pay well enough and offer good benefits . It's a an inconvenient fact the right in America refuses to acknowledge - a $ 15 dollar minimum wage could lift millions of Americans out of poverty .
    The claim that this would cause the price of hamburgers and other food to rise and do horrendous damage to our economy etcis nothing but poppycock . But unfortunately , too many head of big corporation that employ huge numbers of people are despicably greedy, selfish and callous . They could not care less about the well-being of their employees, who are expendable .
    These tycoons could pay much higher wages to their employees and still live lives of incredible luxury . The Walton family is typical of them . Most of Walmart employees are forced to rely on food stamps and other government financial aid .
    Henry Ford understood the importance of paying good wages to his employees, and he did .
    This is highly beneficial to the economy of any country , Why can't more emoloyers in America follow the example of Henry Ford ? America would be a much bette place if mor of them did .