In Donald Trump’s latest leftward lurch, he is reversing what he was saying during the primaries and recommending a $10.00/hr. national minimum wage. This would be a 37.9% increase over the current $7.25 minimum wage.
Trump’s supporters will point out that it’s lower than the Democratic platform that calls for a $15 minimum wage, and that’s the problem we’re facing. There isn’t a conservative option. In fact, there’s not really a Republican option. We’re faced with two Democrats running for the two major parties.
Could small businesses survive? The short answer is “yes” simply because Americans find ways to persevere through adversity. There would be many small businesses who would not be able to, particularly those who rely on minimum wage level employees, but in general it would only hurt the economy, not destroy it. The problem is that this would be another piece and a quickly deteriorating economic plan that relies on people believing, “hey, he ran businesses so he must know how to fix the economy.”
To those who think Trump’s proposed increase in federal minimum wage is no big deal, try running a company that relies on minimum wage employees such as restaurants, daycares, or nursing homes. After quietly abandoning over 2/3rds of his proposed tax cuts last week, these businesses would see a 37.9% increase in payroll while not getting the tax breaks he promised during the primaries.
As RedState puts it:
Trump is laying down this proposal in response to Democrats, who have said he wanted to lower the minimum wage.
Not to be outdone by his liberal pals, Trump is pretty much blowing up everything conservatives and small government proponents have stood on.
The other component that his supporters will point to is that he’s still using the tried-and-true talk tracks of “leave it to the states.” Unfortunately, his interview was all over the board, so there’s no way to tell which comment, seconds apart, represents what he’d really do as President.
This is the latest in the populist shift he’s making to the left. He knows that the majority of people aren’t familiar with the economic impact of a rising minimum wage that adversely affects low- and middle-income families and individuals through increased cost of living. As such, he’s banking on the simple message of higher wages to grab socialist-leaning voters.