 So let's answer this question about minimum wage because it's a really, really important question. You see a lot of people talking about it today and it's nothing new. Minimum wage has been in the political spectrum for a very long time and I want to divide this video into two parts. I want to talk about why people advocate minimum wage. Then I'm going to be getting into my rebuttals of why minimum wage is actually detrimental towards the economy and detrimental for people getting business. Now the reason is why they advocate and what I mean but there's two groups of people for advocation. Let's break that apart. There's regular people who advocate it because they want people to have a good standard of living. Now nothing wrong with that. I know many people advocate minimum wage and not politicians. They have no skin in the game. They have no agenda. They just feel that it's the right thing to do, feeling over data. Okay, but I get it. I understand why they want people to have minimum wage. Then you have politicians, lobbyists who do have skin in the game and they have something to gain. It's called votes and so they use minimum wage or any other let's say narrative to gain votes. Okay, so minimum wage proponent state because of high cost of living we need to increase the minimum wage that businesses pay their employees so they can have a standard of living. That is the argument and they're like, if we don't raise a minimum wage, well how is a person going to fucking survive? Okay, I'm now going to rebuttal this in a couple of points. No particular order by the way. Number one, when they talk about minimum wage and a standard of living, that's a big red flag for me. Minimum wage jobs are entry level jobs, primarily for two demographics of people. Number one, demographics of people are young and up and coming individuals who want a foot in the door, who want experience to get access towards that type of industry. And so employers will pay them the market rate for their no experience, no knowledge, no anything to start. The second demographics is retirees. They're retired and they want to work part time because they don't want to be bored, they want some extra income on the side. So those are two groups of people who are within minimum wage and I don't know about you but I don't think so. Anybody in their right mind wants to stay in a minimum wage job to think that this is going to be their quality of living. Like I mentioned before, minimum wage is an entry job. People go to McDonald's as an entry job, people go as a cashier as an entry job. It's not like they're saying, no sane person is thinking that wait a second. Me servicing at McDonald's is going to give me a standard of living that you get paid in C level. No, it's an entry job so you can get experience within that industry. Okay, I just want to get that first out of the way. Minimum wage jobs aren't for the standard of living that they're proposing. It's not at all, period. They're entry level jobs for people who want to get an industry or retirees and it hurts them both extremely, extremely a lot. So let's go into a couple of things. In a nutshell, first major point is minimum wage actually reduces employment, reduces, not increases employment and there's studies on this. So let's break down some simple things. Number one, let's say, so I'm just going to rounding numbers. Let's say minimum wage is $15. So in Ontario it's close enough, but let's say it's $15. And going back to my example of low level experience jobs. So this hits small businesses extremely hard, even big businesses. So keep this in mind. What are minimum wage jobs? Entry level jobs, Walmart jobs, service jobs, low data jobs, just data crunching, you know, some kind of internship, stuff that you have zero experience, zero knowledge, zero skills. Like you can pluck literally anybody off the fucking street, sit them on this keyboard or stand them up, whatever they need to do and you can teach them within a day what to do. It's very robotic type of work. Okay. And so once you increase the minimum wage, once again, you're that centralized type of socialistic type of planning. What happens to the business? Well, it cuts into their revenue, their overhead increases and what happens? Well, the business has to function in a profitable manner. The business, and there's data on this, they reduce your hours. Why would a business than pay you $15 an hour for something that they can automate a lot of that and be just reduce your hours. And so we've been noticing that a lot within the data and within the statistics that employers are cutting back your rate. Yes, you're making more, but instead of you working 40 hours a week, you're now working 30 hours a week, not good. And so this applies to all spectrums of minimum wage jobs. I'll give you a classical example within the tech space. You can hire interns here for $15 an hour to do random mumbo jumbo, which is a really expensive, or I can outsource everything to India or anywhere else in Eastern Europe and pay them $7 to $8 an hour. They work better. They're much smarter and they they're just better, just economically, it's better for the business. And so you are actually disabling people from entering the workforce. Businesses will not hire you because of the cost. It's just free market dynamics. Why should a business hire you a minimum wage when they can get cheaper labor and better labor overseas? That's for like, let's say, remote work. Or in this case, if it's if it's physical work like service work, they're going to automate it. You see in a McDonald's touch screens, self automated drive-thrus, cashless cashiers, they'll put up the upfront capital costs first, but they're going to recoup that within the backend. So they automate everything. So that's the first thing. It's such a negative consequence for minimum wage. It really screws up people trying to enter the workforce and be the people who are retired who want the ex-employment. The employer can't afford the minimum wage. So these two types of demographics are getting fucked. Next, what happens with minimum wage is it makes young workers less skilled lowering their future earnings. So there's strong evidence what most of the research in the United States pointing to the negative effects. Recent research that studies the question more indirectly finds that teens and youths exposed to higher minimum wages have lower wages and earnings when they're in the late 20s consistent with reduced skill acquisition. This goes back to my point one. If it's too expensive for your employer to hire you, you do not have your foot in the door. They're not going to hire you. And if they do hire you, you're part-time. They're not going to invest money in you because it's just basic mathematics. That's the thing a lot of these politicians and policymakers don't understand. It's mathematics, supply and demand mathematics. And most small businesses are running on very low margins. And the majority of businesses in North America, if you look at the bell curve, are small and medium businesses. They're not the Facebooks or the Googles. And so a young teenager once entered the workforce, hey, fuck it, let's do 20 bucks an hour now. What do you think is going to happen to the small? Why? How on earth is a small business going to afford 20 dollars an hour minimum wage? And that's where it's actually going to head. You see a lot of these states and provinces and central planners come around and state 20 dollars. I'll tell you what, if they start telling me 20 dollars, 100% of my workforce, I'm lucky enough to be in the tech industry, it's overseas. Because a return on investment, you don't get it at all. No scale, no labor. And this 20 dollars fucks people for higher earnings too. It reduces their earning potential because the company gets to figure out the ROI now. It's like I can't pay my guys anymore 80, 90K because these minimum wage guys got to pay fucking 20 bucks an hour. Politicians and policymakers don't think in second order thinking. They only think in votes. They think, oh, we're going to just because I'm going to raise the price is going to fix everything. No. Now there's another thing to keep in mind. This applies to specifically service work and local businesses when it comes to minimum wage. If the business has to take on more capital cost, where do you think that cost goes towards? That cost will be dumped on the, guess it, customer, right? So you have inflation every year. So the dollar is decreasing in value. You have inflation, you have quantitative easing. Now you have the government coming around and telling you, well, our smart central planning minds, our Keynesian superpower states that we know how the economy is the best, free markets aren't the best. And we state it's going to be 15 dollars an hour today and 20 dollars an hour in five years. Let's couple that against the inflation and everything else and quantitative easing. The employer, the business is like, okay, your regular purchase within the store, let's say 20 bucks or something is now $30. You, as a consumer and buyer, you're the one that's going to pay the inflationary rate for everything. And what happens to you? You're like, well, fuck, I don't want to do this. I'm going to go on Amazon or I'm going to go somewhere else. Centralized planning when it comes to market wages is a horrendous idiotic idea. Idiotic idea. I didn't want to dive in really too deep on this because I can go in a whole tangent talking about minimum wage or centralized economic planning by the government. But anytime that you have people that have zero skin in the game within your enterprise, politicians don't have skin in the game within your enterprise, they just want more taxes from you. They have nothing to lose and nothing to risk. You as a small business or medium business, you incur all the risk, everything. And so when you have these individuals coming towards you stating you must pay people, if the margins aren't there, you're not going to hire people literally. And it's not a shocker. We see the early data coming in from the States are implying these minimum wages. And this is just the beginning $15 today, $20 tomorrow. And we call this capital flight. Smart businesses will leave, simple ones through osmosis and businesses that are paying you right now will cut your hours down. And this really, really fucking does hurt young people who want to enter the workforce, they want to gain experience and it hurts people who are retired who want the extra income. So there you go. Minimum wage is an utter scam. It does not serve any benefit to anybody. And it debilitates every aspect of the free market. And I'll leave it at that. If you have any questions to me about this, leave a comment below this video. Don't forget to subscribe and like always hit the big like button and I'll talk to you guys soon. Peace out.