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Rep. Alexandria Ocasio-Cortez recently took to Twitter to once again call for raising the federal minimum wage. She argued that $15 an hour, if anything, is a “deep compromise,” especially in light of the fact that, “McD’s workers in Denmark are paid $22/hr + 6 wks paid vacation.”
Article by Zilvinas Silenas from FEE.
This argument doesn’t hold up. Here’s the key consideration: A sharp increase in the minimum wage will almost always cause unemployment, but it will cause more unemployment the higher it is relative to market wages.
So, Ocasio-Cortez’s US-Denmark comparison is misleading in multiple ways.
It is utterly embarrassing that “pay people enough to live” is a stance that’s even up for debate.
Override the parliamentarian and raise the wage. McD’s workers in Denmark are paid $22/hr + 6 wks paid vacation. $15/hr is a deep compromise – a big one, considering the phase in.
— Alexandria Ocasio-Cortez (@AOC) March 3, 2021
First of all, Denmark does not have a national minimum wage.
Instead, specific industries have different wage rules set through collective bargaining with trade unions. On average Danish fast food workers do earn more than their American counterparts—approximately $27 vs $11. But Denmark is a bad example to use to push for an across-the-board hike in the national minimum wage, because Denmark does not have one.
In European Union countries that actually have a national minimum wage, it is lower than $15 an hour. For example, France’s and Germany’s minimum wages are equivalent to $11.46 and $12.42 an hour respectively.
Also, the US is much bigger and more economically diverse than any single European country. Ocasio-Cortez’s proposed $15 federal minimum wage would be much more comparable to an EU-wide minimum wage, which doesn’t exist—and for good reason.
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France’s minimum monthly wage is €1554, while Poland’s is €614. If France’s minimum wage (or higher) were imposed on Poland by EU mandate, it would inflict much more unemployment on Poland (where average wages are lower) than on France.
Similar regional differences exist in the US and should not be ignored.
Bumping the average New York fast food worker to $15 an hour from the current prevailing wage of $12.68 would cause some unemployment. But it would wreak much more havoc in Mississippi, where the average fast food worker only makes $8.81 an hour.
A minimum wage almost double the average would throw many more people out of work.
Similarly, due to differences in the cost of living, $15 is a mediocre pay rate in wealthy areas and a good one in poorer ones. In an extreme example, $15 in DC is equivalent to a $68 minimum wage in Puerto Rico. It’s also easier to increase the price of burgers to cover the wage increase in New York, where your average resident makes $80K a year, than in Mississippi, where average annual earnings are $44K and where the average (not minimum) wage is $15 an hour.
Any way you look at it, businesses in New York can absorb $15 an hour much easier than businesses in Mississippi.
Finally, large and rapid increases in minimum wages are especially harmful to those with low skills or low qualifications and newcomers to the job market. EU countries with high minimum wages recognize this, and many instituted a “workaround”—a lower minimum wage for young people. For example, the minimum wage for 16-year-olds in the Netherlands is three times lower than for adults. So your typical Dutch teen working a summer job could be flipping burgers for $4 per hour, not $15.
Should politicians pursue policies that allow people to earn more?
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Absolutely. However, the $15 an hour minimum wage is not that type of policy. It will ultimately increase unemployment among vulnerable groups and drive businesses to bankruptcy, especially in poorer states and economically disadvantaged areas.
Most “Conservative” News Outlets Are on the Big Tech Teat
Not long ago, conservative media was not beholden to anyone. Today, most sites are stuck on the Big Tech gravy train.
I’ll keep this short. The rise of Pandemic Panic Theater, massive voter fraud, and other “taboo” topics have neutered a majority of conservative news sites. You’ll notice they are very careful about what topics they tackle. Sure, they’ll attack Critical Race Theory, Antifa, and the Biden-Harris regime, but you won’t see them going after George Soros, Bill Gates, the World Economic Forum, or the Deep State, among others.
The reason is simple. They are beholden to Big Tech, and Big Tech doesn’t allow certain topics to be discussed or they’ll cut you off. Far too many conservative news outlets rely on Google, Facebook, and Twitter for the bulk of their traffic. They depend on big checks from Google ads to keep the sites running. I don’t necessarily hold it against them. We all do what we need to do to survive. I just wish more would do like we have, which is to cut out Big Tech altogether.
We don’t get Google checks. We don’t have Facebook or Twitter buttons on our stories. We don’t have a YouTube Channel (banned), an Instagram profile (never made one), or a TikTok (no thanks, CCP). We’re not perfect, but we’re doing everything we can to not owe anything to anyone… other than our readers. We owe YOU the truth. We owe YOU the facts that others won’t reveal about topics that others won’t tackle. And we owe America, this great land that allows us to take hold of these opportunities.
Like I said, I don’t hold other conservative sites under too much scrutiny over their choices. It’s easy for people to point fingers when we’re not the ones paying their bills or supporting their families. I just wish there were more who would make the bold move. Today, only a handful of other major conservative news outlets have broken free from the Big Tech teat. Of course, we need help.
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