Gov. Whitmer Is Attempting the Old Switcheroo With Stimulus Money And $15 Min Wage
Did Whitmer think no one would catch it or did she not really care?
Michigan is getting approximately $18.8 billion, borrowed from future generations, of federal tax dollars in “Covid” stimulus funding. Part of those funds is coming from the American Rescue Plan passed last March.
According to reporting by MLive Whitmer wants to commit $300 million in grants, which she wants to give out on a first-come, first-served basis. The company must use these funds to help bridge any gap, if one exists, between the hourly wage of what a company can pay and feels their open job worth and the Democrat’s desired/mandated $15 hourly wage. This grant money would be dispersed under her MI Bigger Paycheck plan which would offer small businesses these funds for a period of just three months, you read that correctly just 3 months.
It gets even better, as I stated the funds would cover the first three months of the raise on the condition that businesses commit to keeping the employee and continuing to pay their mandated $15-per-hour raise for at least an additional three months.
Isn’t that nice of her to take 1.6% of all of the borrowed/future federal tax dollars to help the people of Michigan. Where is the other 98.4% going? Whose pockets and/or budgets will it land in?
Whitmer believes this money will help businesses to recruit and retain employees for 3 months and that is it. This switcheroo comes from her willingness to fund the difference between what the job is worth or what a company can pay at that hourly rate and $15 dollars an hour, but for only three months. What happens after 3 months, well Whitmer said:
“the market will drive what happens thereafter”
At the end of those 3 months, the businesses will all be stuck with paying people a $15 an hour wage for a job where the market cannot afford it or a person whose skill set does not command that wage.
Now the business owner must either raise the cost of their product or service to be able to raise their wage for that job to $15 an hour or lay the person off. If laid off they land right back on unemployment.
The Republican Senate and House must pass the spending bill.
Let’s see if the switcheroo will work.