Former Democrat DESTROYS Minimum Wage, And Likes THIS Candidate For President (VIDEO)

July Points Out How Minimum Wage Hurts Workers

by Josh Guckert

In a video from July entitled “Young People, The Silly Minimum Wage Debate, & Basic Economics,” rapper Eric July unloads on the minimum wage. July states that one is not paid for their “personal life,” but rather for the “value in the position.” He goes on to point out the long-understood economic reality that raising the minimum wage most harms unskilled workers. He also explains that the minimum wage is most often able to be easily absorbed by larger corporations, while smaller companies are unable to withstand these artificial wage hikes. July states that abolishing the minimum wage would result in more benevolent outcomes for the poor than raising it. He concludes by pointing out that the only reason that crony capitalism and bailouts exist is because government is so involved in so many aspects of the economy.

According to July, he “grew up in a single-parent household and [his] father was not around, didn’t have a lot of money, and [he] ‘gangbanged’ in Dallas, Texas.” July attended the University of Memphis on a Track & Field scholarship, and “it was there [he] campaigned for Barack Obama in 2008, and did it blindly. There was no other reason [he] supported him other than the fact he was black and Democrat.” July now identifies as a libertarian, and in an interview with Fox & Friends, July stated that among the 2016 Presidential candidates, his favorite is currently Rand Paul.

July correctly identifies a number of issues with the minimum wage, namely that it has been found to disproportionately harm low-skilled and minority workers. By enacting a minimum wage, governments do not guarantee any more income to most workers, but rather “raise the bar” which must be reached before employment can even be attained. While the aim of such legislation is typically to assist those who are in the worst economic situations, the minimum wage favors the already-privileged at the behest of those it seeks to help, as employers naturally seek to keep those workers who have the ability to elevate themselves and the company.

Additionally, as July notes, larger companies are more able to take on the costs of higher minimum wages, while smaller enterprises can find themselves in precarious situations. It is for this reason that corporations historically favor mandated wage increases, or are sometimes even able to raise their wages independently. If there is another burden for smaller competitors to shoulder, companies like Wal-Mart can easily jump ahead, eliminating few jobs while keeping out potential competition.

There are worries among some that eliminating minimum wage would result in companies intentionally lowering wages in a supposed “race to the bottom,” however, this is mis-founded. Free markets keep companies honest, as employees are given the selection of where to work. If a certain company refuses to pay a reasonable sum for the job being performed, this only opens the door for an adversary to lure a potential employee away. In the end, the market can dictate what is a reasonable “minimum wage” far better than any government can.

In conclusion, Eric July brings to light some extremely important points in arguments against the minimum wage. Government cannot take people out of poverty simply by raising an artificial price ceiling; if this were truly the case, the minimum wage could be raised to an amount much higher than $15/hr and poverty would drop. While most are able to see the detriment at this extreme level, it is important to note that the same theory applies at lower levels, even if with not as wide-reaching consequences. Governments should not enact policies which arbitrarily preclude employers from hiring who they wish at a mutually-agreeable sum. The free market protects employees better than any bureaucracy can.