In the past, we have discussed how the Democrats have created a system that ensures poor and working Marylanders are paying more in taxes each year. Although this regressive taxation has been pointed out for more than a decade, the Democrats refuse to change it. Instead, the Democrats are actually trying to double down on the regressive taxation system by increasing the minimum wage.

It has been proven beyond a doubt that all increases in minimum wage translate into a decrease in jobs or an increase in costs. The economy cannot be increased by fiat, which means that real worth cannot be created through law. We have written much on this topic, citing prominent authors and theorists, including father of capitalism Adam Smith, political theorist Edmund Burke, economist David Ricardo, social theorist Thomas Malthus, and political commentator/humorist Mark Twain.

If the government could erase poverty by merely increasing the minimum wage, then why are politicians stopping at $25 and not moving it to $100 per hour? Or even $1,000 per hour? Wouldn’t it be nice for a minimum wage employee making $2,080,000 per year for 40 hours of work per week? It is because they know that no increase by law or regulation can result in an increase in real wages.

So why do the Democrats keep pushing for an increase in the minimum wage? To force more people above the poverty threshold so their benefits can be reduced while not actually changing their economic situation. In essence, poor and working families will not see a real increase in wages but they will see a real decrease in benefits, forcing them to pay more of their income to provide basic goods. This frees up billions for Democrats to divert to their lobbyist donors while still pretending to help the poor.

For simple math and rounding purposes, assume $15,000 per year is the poverty line for benefits for a single adult. This is an income of $288.46 per week. If minimum wage is $10 an hour, then this translates into 28.8 hours worked per week each week for the whole year. If the minimum wage is moved to $15 an hour, then this translates into 19.23 hours.

There is a substantial difference between an individual who works under 20 hours a week and someone who works 28 hours a week, and the minimum wage increase penalizes those who work full time or near full time. In essence, a minimum wage worker under the new minimum wage would make $21,840 on paper while having the same purchasing power of $15,000 a year and none of the benefits that came due to the poverty threshold. Additionally, they will pay more in taxes, effectively reducing their real income by 20-30%.

The Democrats hope that people think that a higher number means more money. The irony is that they are currently spreading a debunked Washington Post article that claims that “real wages” have not increased due to the increase in the CPI adjustment . What these Democrats don’t acknowledge is that minimum wage increases always create inflation that paces or outpaces the growth. They hope that they can use the numbers to attack others while hiding the fact that it exposes the broken nature of their own policies.

It is clear that an increase in the minimum wage can never help workers, and those who push the issue want only to make it harder for poor and working families to get by. The only way to increase the economy is to provide new resources, new goods, or new services that can be added. This requires a reduction in regulation and costs that prevent new businesses from forming.

The numbers are clear on the issue, and the Democrats who keep pretending to be advocating for the poor are the ones backing a regressive system that would ensure that people are put further into poverty.