5. Poor Nations Would Become Even More Destitute
Many struggling nations simply can’t afford to pay their workers $15 an hour.
Places like Haiti, Bangladesh, and Ethiopia rely on cheap labor. Many citizens work jobs where they manufacturer or produce inexpensive goods for bigger Western nations. This system isn’t perfect, but it’s what keeps the local economy stable.
A $15 an hour minimum wage would destroy any price advantage these nations have. People would be laid off, factories would close, and the economy would tank.
6. Outsourcing Would End
While the higher minimum wage would cripple poor countries, there is some good new for those living in the West.
Outsourcing, the practice of taking American and European jobs and having them done overseas, would end. Since companies could no longer pay such a tiny wage, they’d be likely to re-open factories and shops in the Western world.
This means that some new factory and manufacturing jobs might be created for people in the United States and Europe.