The hubris is impressive. Democrats think they know what an hour of labor is worth in every job but simultaneously make any value they assign to it worthless with their irresponsible economic meddling.
Inflation is at historic levels not seen in decades. They are printing faux money and spending like mad (making inflation worse) and undermining natural forces that might provide corrections.
What a great time to add more price pressures to struggling businesses as states who think they know better increase the cost of labor. On January 1st, Vermont, my neighbor to the left – and not just geographically – jacked their minimum hourly rate up to 12.55 per hour.
Labor force participation in that state is just over 61%, with unemployment reported at 2.6%—310,106 employed, 8,213 unemployed, with a state population of 623,077.
For comparison, New Hampshire’s labor force is 740, 850 with 726,130 employed and 14,720 unemployed. The current unemployment rate is 2.7%. The labor force participation rate is 67.3%.
New Hampshire does not have a minimum wage and defers to the federal base of 7.25, which serves no practical purpose. No one was starting at that rate before employers were competing for workers, and these days, the average hourly wage in NH is double that.
And this move by Vermont still gives the Granite State a competitive advantage.
Vermont’s experience with sales taxes has proven that having them gives New Hampshire a distinct economic advantage.
As their state-mandated hourly wage rises, we can continue to observe the impacts that will have as well, though several factors may be too intangible to observe directly.
Higher minimum wages put price pressures on small business owners who typically find they need to cut staff or hours. But it also makes them more choosy about who to hire. Where a lower wage supports taking on unskilled workers and coaching them up, which is good for both the worker and employer, higher starting wages will prevent unskilled Vermonters from getting jobs.
The Democrat’s minimum wage laws are racist, denying unskilled minorities or immigrants entry-level jobs, which is ironic. That was why Progressives demanded them in the first place.
And here they are, punishing them by denying opportunities under the facade of helping.
Don’t worry. I’m sure there are plenty of other progressive laws to punish employers for trying to hire qualified help or, more likely, cash incentives to hire unskilled labor paid with tax dollars that don’t exist and are increasing inflation in the first place.
It all comes back to more government meddling at the expense of everyone while the Left pretends to be doing us all a favor. A “helping hand” that, more likely than not, will force people to drop out of the labor force they are not even counted.
