The Unstated Logic of Every Minimum Wage Law

A deputy sheriff pays a visit to a small business. He confronts the owner.
DS: I see you got a “help wanted” sign in your window.
Owner: That is correct.
DS: How much is the starting wage?
Owner: The federal minimum wage.
DS: We got a local minimum wage of $15 an hour.
Owner: I cannot afford that much.
DS: That don’t cut it with me, boy. The city government says you got to pay a living wage.
Owner: I already do. All of my employees are alive.
DS: You trying to make me look stupid, boy?
Owner: You don’t need any help from me.
DS: I see. A smart ass. Well, we got ways of dealing with smart asses. I’m writing you up. You’re going to pay a $10,000 fine, I expect.
Owner: That’s outrageous.
DS: No, it ain’t. $334,000 is outrageous. That’s what Seattle collects. We’re real lenient around here.
Owner: But I cannot afford to pay $15/hour.
DS: Well, then, you need to go into another line of work.
Owner: But I have invested everything I own in this business. I took out a large loan.
DS: Then you better have gotten someone to co-sign the note.

This post was published at Gary North on November 09, 2017.