Tom Steyer Proposes to Triple the Minimum Wage

Usually when billionaires run for political office, it is reasonable to expect they have a basic understanding of economics. In the case of presidential candidate Tom Steyer, however, one cannot make that leap of faith. Either Steyer has no understanding of economics whatsoever, which is extremely unlikely, or he does and does not care, or he is a pandering liar.

On February 9, speaking in South Carolina, Steyer said “he would call for a $22 per hour minimum wage if elected president.” This ups the ante on Steyer’s competitors in the Democratic presidential primary race, who are calling for an increase to $17 per hour.

Currently, the federal minimum wage is $7.25 per hour. If Tom Steyer were president, that rate would triple. Examining the consequences of such a move brings into sharp focus the dangerous absurdity of Democrat proposals. It offers additional reasons to vote for Republicans not necessarily because they are Republicans, but because they are not Democrats.

Shown on the chart below is the history of the federal minimum wage since it was first established in 1938. The first column shows the actual, nominal, minimum wage in each year the amount was raised. The middle column displays the consumer price index in each of those years. The column on the right then calculates what the minimum wage was historically, if expressed in 2019 inflation adjusted dollars.

As can be seen, if the minimum wage set back in 1938, 25 cents per hour, were expressed in inflation […] Read More