The Economic Suicide Squad Wages Wage War

Posted: Jul 24, 2019 12:51 PM
The Economic Suicide Squad Wages Wage War

Source: AP Photo/J. Scott Applewhite

With one fell quote Rashida Tlaib, the freshman congresstron from Michigan, clarified one of the most important issues of the 2020 election season.

“I can't allow people to be living off tips, you know, relying on tips for wages,” she declared to a group liberally misnamed the Restaurant Opportunities Center of Michigan—misnamed, that is, if it supports the type of tripe she’s doling out.

Instead, she’s calling for a $20 federal minimum wage, which I suppose means not just raising federally mandated wages, but the outlawing nefarious tipped-employment too.

Nope, she will no longer allow people the satisfaction of making more money in one night than most of their friends make in a week. The major benefit of tipped employment, of course, is that if you hustle, you can make a great deal of money very quickly.  

And she can’t allow that.

She says Trump is a dictator?

Tipped employment is a God-send to students, young graduates and anyone looking to climb their way into the middle-class. It provides the opportunity to pursue an education, be an entrepreneur or an artist, or find yourself while paying the bills, and maybe, someday, become a congresstron, just like Tlaib’s colleague, Alexa Occasional-Cortex, did.

So, if 2020 is about anything it’s about the rest of us not allowing Tlaib and her friends in the suicide ‘Squad’ to kill jobs like Obamacare on crack.   

Because one thing the $20 federal minimum wage will allow for is that as our economy spirals into depression following the enactment of this monumentally stupid wage law, restaurants will be the first into bankruptcy.

They will be followed into bankruptcy by students, entrepreneurs, artists, young people or anyone trying to find themselves while paying the bills.

If you think things were bad when oil prices went from $70 a barrel to over $100 a barrel, wait until entry-level wages go from $7.25 to $20.00.

With no tips allowed.  

CNN estimates that 63 million Americans make $20 per hour or less, with 18 million Americans making $10 per hour or less.

The oil spike of $30 per barrel cost about $540 million per day at consumption of about 18 million barrels per day.

Assuming a minimum wage increase would raise wages for about 25 million Americans by about $7 per hour—and I think it will be much greater than that—it will cost the economy about $1.4 billion daily or $511 billion annually.

The total annual sales for the entire restaurant industry in 2017 was a little less than $800 billion; hotel revenues were $200 billion; $20 billion for bars; $250 billion estimated for fast food.

By comparison, last week the New York Times complained that the trade war with China cost American farmers $28 billion, $7 billion short of the $20.8 billion collected from China on tariffs.

The Congressional Budget Office recently estimated that a move to a $15 an hour minimum wage would raise wages for 17 million Americans and raise 1.3 million people out poverty according to Fox Business. And don’t worry, because rich people will pay more than poor people. But poor people will still pay.

“All consumers would pay higher prices, but higher-income families, who spend more, would pay more of those costs,” says the CBO/

 If that’s the best the best the CBO can do, then it’s time to get rid of the CBO.

We could give away $12,000—the federal poverty level-- to 1.3 million people living in poverty now and it would cost less than $16 billion annually.

Where is the other $500 billion in minimum wages hike going?  

I guess we’ll have to find out where she will allow it to go.

But it won’t go to tips, even if she allows.

Restaurants, bar, and hotels won’t have the money to operate. And families, higher and lower income families won’t have the spare change for tips anyway.

If you thought the $7 billion dislocation to farmers in the trade war has hurt the American economy, just wait for Tliab’s wage war to start.

That’s not a tip, that’s a warning.