What do illegal immigrants have to do with your grandma getting shoved off the cliff?
One of the big pushes by the Leftists such as President Biden, Komrade Sanders, and the Idiot-In-Charge Cortez is to get a federal minimum wage of $15 per hour. Everyone should be paid a living wage, they scream.
Here’s the problem.
Not everyone who employs a person can afford to pay them $15 per hour.
Let’s look at a worker earns $80,000 per year and supports a family. That income is almost one and a half times MORE than the median income in the US. After taxes the NET income is less than $60,000 per year. That is $30 per hour in remaining dollars.
What happens if the family needs to take care of an aging parent or the spouse, or a child needs at home care. Under the Biden plan, the family will need to pay out HALF of their income to hire someone to help. Now if you’re a 20 something congressman from New York making $174,000 per year, or a multimillionaire senator from Vermont, or an ex-vice president who made millions of dollars making speeches, paying out $30,000 per year is no big deal.
This is where the illegals come in. There is and will continue to be a “shadow” economy that has and will continue to pay illegal workers less than minimum wage. Most of the illegals are employed by businesses that required “touch labor” such as cleaning, manufacturing, construction, and agriculture.
I believe in the future we will see a booming “shadow” economy fueled not by businesses, but by individuals, such as the family who needs to hire a care worker, and cannot afford to pay the mandated “minimum wage”.
Why would anyone work for less than minimum wage? If the worker is paid in “shadow” dollars, no taxes are paid. That’s a 10 to 20 percent increase in real dollars. $12 of “shadow” CASH is worth more than $15 of taxed income.
And there will be another effect that the Leftist won’t see coming. With the “shadow” economy, government never gets their hands on THE CASH, which means they will eventually raise taxes on the working folks, making the “shadow” economy even MORE LUCRATIVE, and the spiral downwards accelerates. More taxes, more cash transactions. At some point you may see the government try to crack down on cash transaction. When this happens you will see a switch to crypto currency to keep one step ahead of “the man”.
What a system!