When The Government Decides What Businesses Are Good

There are those in Congress who are supposed to represent us that believe that the government should be able to decide whether a business should be allowed to operate or not. We have seen a lot of this during the coronavirus outbreak, but unfortunately that may only be a preview of things to come.

Yesterday Townhall reported the following:

Millions of Americans are out of work due to the Wuhan coronavirus pandemic. Thousands more are unemployed because of President Joe Biden’s decision to cancel the Keystone XL Pipeline. Despite the tough times, progressive Rep. Ro Khanna (D-CA) believes “now is the right time” for Congress to press forward with a $15-an-hour minimum wage, something they tied to the latest COVID relief package.

According to Khanna, Amazon and Target made a decision to raise their minimum wage to $15-an-hour across the nation. As a result, Khanna says, the companies have produced more jobs (yet he doesn’t take into account that more people are shopping online due to lockdown restrictions and the pandemic).

The Representative evidently does not see the value of every small business:

“Businesses like Amazon and McDonald’s, for example, can and perhaps should, pay more, but I’m wondering, what is your plan for smaller businesses?” CNN’s Abby Phillip asked. “How does this, in your view, affect mom and pop businesses who are just struggling to keep their doors open, keep workers on the payroll right now?”

“Well, they shouldn’t be doing it by paying people low wages,” Khanna replied. “We don’t want low-wage businesses. Most successful small businesses can pay a fair wage.”

According to the congressman, if workers were paid for their productivity, they would be making $23-an-hour.

“I love small businesses. I’m all for it but I don’t want small businesses that are underpaying employees,” he said. “It’s fair for people to make what they’re producing and I think $15 is very reasonable in this country.”

I have posted numerous articles about the job losses that will result from raising the minimum wage to $15 an hour. The ideas of this Representative would not only limit the access to the workplace for young people seeking jobs, it would also cause the mom and pop restaurants and small shops either to close or to cause the owners to have to work 70-hour weeks because they can’t afford to pay anyone the minimum wage.

This Congressmen has not studied economics. He also needs a serious less on being compassionate to those who are struggling to keep a small business going.