The current minimum wage is $8.25 per hour. A very small segment of the population actually earns that amount. What would that do to workers in Florida?
Some suggest raising the minimum wage $1 per year until it reaches $15 per hour. That is a 12% increase the first year. The person currently making $10 per hour will expect the same 12% raise to $11.20. Same thing for the $15 an hour worker who will now make $16.80 an hour. A journeyman making $30 per hour will go up to $33.60. Great news for all! Or is it?
Since labor costs are about 40% of my overhead costs, I will need to increase my prices 4.8% the first year. All businesses will need to increase their prices to consumers to cover the increase.
This will start an inflationary spiral that will result in Floridians living on fixed incomes losing significant purchasing power, businesses replacing entry level positions with automation (Been to a McDonald’s lately?) and more dependence on government programs.
Going from $8.25 to $15 per hour is an 81% increase. Business must pass these costs along to their customers. The increased cost of doing business will be the final nail in the coffin of many of today’s struggling businesses. The increased cost of labor and services will discourage new business growth. Automation will replace entry level jobs.
Andrew Gillum, who is hoping more ballots will be found somewhere so he can become Governor of Florida, has spent his entire working life as a government employee and does not know how business works. He might be a well-intended, nice guy but he will destroy Florida’s economy and bring misery to the very people he intends to help. Florida can’t afford his policies.
What do you think?