The impact of this will be to double the wages of the higher level unskilled and semi-skilled, but at the cost of unemployment for the least skilled. The petite bourgeoisie, which has already been decimated by the lockdowns, will be further harmed. Minimum wage increases are a band-aid solution with negative side effects. Social democrats typically envision an economy comprised of big government, big business, and big unions functioning as partners. A better vision is an economy of self-employed persons and cooperative partnerships of individuals and stakeholders. The main economic reforms we need are to eliminate taxes entirely for the poor and working-class, total deregulation of the petite bourgeois sector, debt jubilees (total moratorium on rent, mortgages, utility bills, credit cards, student loans, medical bills, criminal fines, and car payments, with compensation for petite bourgeoisie sectors harmed by the jubilee) and reparations for the government-induced depressions experienced in 2008 and 2020.
Krystal Ball and Saagar Enjeti discuss new legislation brought forth by Democrats to raise the national minimum wage to $15 by 2025.
Categories: Economics/Class Relations