On April 28th, 11th District Rep. Analilia Mejia introduced the Living Wage for All Act. This piece of legislation, if approved, would increase the federal minimum wage from the current $7.25 up to $25.00 hourly in stages over the next 5 years. This would mean that NJ’s hourly minimum would increase more than 9 dollars. As the name suggests, this legislation is designed to offer assistance to struggling Americans who are suffering due to the increased cost of living.
While we can appreciate the intention here as no one wants to see their loved ones suffer from privation, this act, like all acts of today’s Congress, is woefully blind to the economics behind affordability. Large increases to minimum wage, whether implemented immediately or gradually, increases inflation, worsens unemployment, encourages automation, and makes it all the more difficult for small businesses to operate. As the cost of hiring employees grows, companies will downsize their staff and pass additional costs onto the consumer. California lost between 10-18 thousand food service jobs when they raised theirs to $20. Workers might applaud this bill’s passage now, but when their jobs are phased out and the costs of their needed goods and services grow even more unaffordable, they will realize that once again, the government has made their situation worse.
If Rep. Mejia and her colleagues want to actually improve the lives of struggling Americans, then there are many other things that can be done. Firstly, Congress needs to exercise its Constitutional powers of the purse to reign in the run-away spending bleeding Americans dry. To date the U.S. government is over 39 trillion dollars in debt with over a trillion in annual deficit. The greater that number grows the weaker our dollar gets and the more taxpayer money has to be allocated to bloated interest payments. Additionally, consider enacting pay-as-you-go style legislation to prevent the government from needing another debt increase.
End President Trump’s disastrous tariffs and his many unjustifiable acts of aggression (be they in Iran, Venezuela, or carried out by ICE agents). Estimates put the daily operation costs in Iran at approx.1 billion, Venezuela costs us over 20 million a day and ICE costs us around 10 million a day. Not only are these actions costly, unpopular and constitutionally dubious, but they create artificial barriers for employment and trade and further diminish the wealth of each American. They also make each trip to the pump a nightmare.
Make starting and running a small business simpler and cheaper. Audit the FED and Pentagon to identify economic waste. The best and most effective way to help laborers is to increase employment opportunities. One possibility is to deregulate small businesses, which account for around 45 percent of all employment. Additionally, the more competition in the market, the cheaper goods and services become.
Finally, and most importantly, allow Americans to enjoy the money they make by limiting or eliminating harmful taxes. Every dollar seized by Uncle Sam, regardless of the reason, is a dollar that cannot be spent on needs, wants, and luxuries. No manner of redistribution, regulation or restrictions will ever do more to help citizens than leaving them and their property alone.
In Liberty,
The New Jersey Libertarian Party
Bruno Pereira
Chair, New Jersey Libertarian Party