Opinion: Biden’s Incredibly Bad Idea, and What He Should Actually Do | Shlomo Rudman

Since entering office, President Biden has been pushing progressive agendas despite labeling himself as a moderate who is willing to cross the political aisle and work with Republicans on key issues. From issues like climate change and immigration to the Covid relief bill, Biden and his crew are working mostly unilaterally to get their agenda passed into law.

One of Biden’s top priorities is raising the federal minimum wage to $15 an hour, an idea that he wants as part of his $1.9 trillion Covid relief but admitted recently that it would likely have to be part of a separate bill. Regardless, the plan to raise the minimum wage to $15 an hour might have good intentions behind it, but is a terrible idea.

Thousands of small businesses across the United States are seriously struggling due to the pandemic. A massive amount of those businesses would not even be open anymore without the Paycheck Protection Program, which has helped them through the crisis. Still, far too many are hanging on by a thread, straddling the line between breaking even or making a small profit and going deep into the red. Raising the minimum wage on these businesses would be devastating. Businesses who already can’t pay their workers would then be obligated to pay them more, forcing them to shutter their doors and destroying the livelihoods of countless families.

This problem is exacerbated by the fact that big box stores like Amazon and Walmart can easily absorb the shock of a higher minimum wage, resulting in small businesses having to raise prices on goods to make a profit, while the big players can keep prices the same, driving more customers to them and away from small businesses.

But there’s a better idea, one that I am surprised I have not seen anywhere else: implement tiered minimum wages. In other words, the minimum wage that a business has to pay should be based on how much their bottom-line profit is. Massive retailers like Amazon and Target, which earn billions of dollars a year should have their minimum wage set at, let’s say for the sake of the discussion, $20 an hour. Midsize retailers that earn large profits but not quite the eye-popping ones of the bigger retailers should have a $15 minimum wage. And small businesses that can’t survive with higher minimum wages should have their obligations to their workers remain the same.

Doing something like this would allow low-wage workers to move their way up on the economic ladder while also allowing small businesses to stay afloat. If you just raise the minimum wage across the board there will only be one group of people hurt: the people who put their sweat, tears, and life-earning into a business to support their families.

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5 COMMENTS

  1. In truth, the workers whom Biden is trying to help will also be hurt. If the businesses that employ them can no longer afford to pay their salary, the worker will be out of a job entirely. I would imagine that, if asked, any employee would rather make $10 an hour and have a job, than $0 an hour with no job.

  2. Your “opinion” is very flawed. First of all the $15 per hour was sidelined because of….negotiations between the White House and Republicans. Secondly if the raise comes through it will be phased in over a few years just like NJ is doing so it wouldn’t be as drastic as you are making it out to be. Your solution of a tiered wage is unfeasible as well. How many people will work for smaller companies if they know that they can make $4+ per hour more at the big box stores for the same job and probably benefits too? As soon as a job opens up at the big company the employee will jump ship leaving the small company hard pressed to find a replacement at the lower wage and then go through the expense of training another new employee all over again. Do you realize that in NJ the minimum wage increased just .46c per hour over the last 8 years? Please tell me you can survive on that additional $18.75 for a 40 hour week increase before taxes. Many states still use the federal standard of $7.25 per hour. Where in this country will you be able to get started with $290 per week before taxes for 40 hours of work? That person will be stuck in the same low paying job for the rest of their life. Maybe you should be asking why after 3 years of “the greatest tax cuts in history” all businesses can’t afford to pay the $15 per hour. Supposedly we had the “greatest economy of all time” so why weren’t all well run businesses able to absorb some sort of pay raise for their employees? Three full years of everyone being employed, everyone making money, everyone getting tax breaks, the stock market hitting record highs and within 3 months of the beginning of the pandemic people were on food lines trying to feed their families. That’s even with the first pandemic checks that were sent out. Maybe you should do an opinion piece on that.

  3. Zman

    To answer and solve your mystery.

    That’s because in today’s generation as tight as we were financially. during coronavirus pandemic lockdown people are still spending thousands of dollars on EXTRA WANTS and not only on family NEEDS and that’s why even with the government sending them stimulus checks and boruch Hashem back full time at work they are still picking up boxes of food in lines. Are they poor and broke to need tomchei shabbos? Boruch Hashem not. Not with the fancy vacations and Simchas were making even when our finances are tight. We can’t expect to ever save ourselves from dept until we take upon ourselves the one secret to financial success. Of course besides for most important 8s bitachon and emunah in Hashem with Hishtadlus.

    The important line to remember is
    “GET WHAT YOU NEED NOT WHAT YOU WANT”

    Sure we all need a summer vacation but 3 vacations a year and fancy with lots of extras at Simchas is going out of control. There are many affordable options for vacation for your entire family to enjoy that don’t have to cost so much.

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