Joe Biden became “President Joe Biden” just 5 days ago. In the first 3 days of his tenure, he signed 30 executive orders, mostly undoing the work of his predecessor, President Donald J Trump. No one can speculate on his motivation, be it spite or part of some master plan, but his actions so far have Americans concerned for the future.
A massive Coronavirus relief bill, ostensibly meant to provide relief for Americans who are struggling to pay bills and put food on the table, includes provisions to pave the way for a $15 minimum wage. Without delving into the minutiae of economics, a quick look at the results of such an undertaking is warranted.
Initially, unskilled workers will be thrilled with the larger paychecks that come from the boost. However, a broader view is a bit less rosy. As the demands for employee salaries rise, major companies will find ways to cut costs. Mostly through automation. We’ve already seen companies like McDonald’s reduce their staff with automated ordering kiosks, leaving some workers without employment rather than enjoying the increased minimum wage.
Beyond the automation, there’s an even bigger picture to examine. Employers will not only be forced to spend more on labor but on supplies as well. Suppliers will be subjected to the same rules and same operation cost increases as those businesses buying their supplies.
The only way to remain profitable will be to increase the cost of goods and services. Those increases will be passed on to the next business in line, who in turn, will be forced to likewise increase costs to maintain profits. The net result will be market-wide inflation. Bear in mind, this is simply looking at unskilled labor.
Skilled labor, such as tradesmen like myself, demand a higher rate of pay on the open market. After I left the military, I found the state of Florida refused to recognize the medical training I received when serving with the USN/USMC. As a result, at 21, I joined a local plumbing apprenticeship program and began my training in the trades in an effort to escape the minimum wage job market.
With more experience and training came higher pay. True to plan, the knowledge and skills I gained over the years meant I could demand more than your typical unskilled worker. I
f the Democrats manage to ram the “Fight for $15” initiatives down our collective throats, skilled labor positions will demand more money than their unskilled counterparts, and rightfully so. Once again, as the costs of labor increase, so do the costs of goods and services, and once again, this can only serve to drive inflation.
To add insult to injury, President Biden has signed an executive order to stop the Keystone XL pipeline project. This action cost 11,000 Americans their jobs and removed almost 2 billion dollars in wages from our economy, according to GOP Chairwoman Ronna McDaniel.
A group of Republican Senators, led by Senator Steve Daines (R-MT) have been vocal about the halt on construction, claiming it will cost thousands of American jobs, drive up the cost of fuel at the pumps, and crush the energy industry, putting America back on the path to dependence on foreign oil. Energy independence was a key component of President Trump’s plan over the last 4 years. Under his guidance, Americans achieved this goal. It appears the Democrats will spend the next few years undoing the work we’ve done.
To further that insult, President Biden also rejoined the Paris Climate Accord, which will take 30 days to implement. After implementation, Americans can look forward to spending more on gasoline, electricity, and heating costs. With inflation rising, the cost of living rising, and now fuel prices rising as well, Americans will find themselves struggling in ways we haven’t seen since the 1970s.
We’re only five days into the Joe Biden Presidency, and Americans should already be concerned for the next 3 years, 359 days. As the Democrats continue to move this country forward with their personal agendas, Americans will continue to see the economic outlook darken. Rising inflation, rising fuel costs, and stricter regulations on industries brought about by international standards applied to American jobs will choke out the innovation and growth President Trump attempted to foster.