One of the most significant drawbacks of forced minimum wage increases is that people will ultimately lose their jobs.
As it becomes harder and harder to pay employees while maintaining profit margins, business owners lay off employees, cut their hours, or turn to automation in order to keep the business afloat.
De Blasio wants to make sure businesses shut down no matter what:
As President, I would issue a robot tax for corporations displacing humans, and create a federal agency to oversee automation. https://t.co/W9JWIFFDaN
— Bill de Blasio (@BilldeBlasio) September 9, 2019
Well… it speaks for itself:
To start, my plan calls for a new federal agency, the Federal Automation and Worker Protection Agency (FAWPA), to oversee automation and safeguard jobs and communities.
You know what else would protect workers? Not forcing minimum wage hikes what get rid of their jobs.
FAWPA would create a permitting process for any company seeking to increase automation that would displace workers. Approval of those plans would be conditioned on protecting workers; if their jobs are eliminated through automation, the company would be required to offer their workers new jobs with equal pay, or a severance package in line with their tenure at the company.
Additionally, my plan would close tax loopholes worth hundreds of billions of dollars for corporations that invest in automation and then often deduct it on their taxes, even if they know that their “investment” will likely destroy their employees’ jobs.
Lastly, my proposal would institute a “robot tax” on large companies that eliminate jobs through increased automation and fail to provide adequate replacement jobs. They’d be required to pay five years of payroll taxes up front for each employee eliminated. That revenue would go right into a new generation of labor-intensive, high-employment infrastructure projects and new jobs in areas such as health care and green energy that would provide new employment. Displaced workers would be guaranteed new jobs created in these fields at comparable salaries.
So basically this guy’s new campaign slogan should be:
Damned if you do, damned if you don’t.
de Blasio WILL shut down your business. https://t.co/Wf8i43M0wn
— Ashley D. (@RedIsTheNewPunk) September 9, 2019