So, President Obama is currently demanding two things of Americans. If he gets his way on both, the poor in America will suffer more than middle and upper class Americans. But don't misunderstand, we will all suffer. Here is why.
Minimum Wage:
The president is asking for a 39% increase in minimum wage, from $7.25 to $10.10 per hour. Businesses would need to either raise prices, lay people off, restrict hours worked, or some combination of these, in order to cover the increase in wages payable.
EPA 'Coal Fired Power Plants' Regulations:
Mr. Obama wants all coal fired power plants built from this day forward to include technology, which has yet to be developed, to capture and contain carbon emissions. Experts in the field say the additional regulations would raise the cost of household utilities by 70%.
Even if the technology goes undeveloped, the lack of new plants coming online will have a price raising effect as well. More regulations always raise the cost of doing business. Business costs are always passed on to someone, employees or customers.
Now the Payback:
Assuming President Obama gets both his wishes, would the increased electric bill at home cost more then the increase in wages? The president, his party, and many on the political left, claim it is unacceptable to work fro $7.25/hour while supporting a family of 4. They are correct.
But the answer is not to raise the cost of living so high as to make the increase meaningless. The answer is that jobs paying minimum wages are not intended for supporting a family. Mostly they are jobs intended for young, inexperienced, unskilled workers to get a job, develop skills and habits that will support more meaningful, higher wage jobs.
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