Raise the minimum wage in Seattle they said. It will help workers they said. Well, the city did increase the minimum wage from the previous rate of $9.47 to $15, which is to be phased in by 2018. It’s now at $11, and lo and behold it has hurt workers. A study found that workers would’ve already seen an increase in wages without the hike because of the increased economic activity and more would’ve been employed. Instead, hours were cut, fewer people worked, and all of this was [predictable]:
The average hourly wage for workers affected by the increase jumped from $9.96 to $11.14, but wages likely would have increased some anyway due to Seattle's overall economy. Meanwhile, although workers were earning more, fewer of them had a job than would have without an increase. Those who did work had fewer hours than they would have without the wage hike.*skip*
So, if this is the impact at just $11, I guess we can say that an economic iceberg is about to hit California and New York, as both states raised their minimum wage rates to $15. In 2013, over 700,000 jobs were lost due to minimum wage hikes. The American Action Forum found that every $1 increase accounted for a 1.48 percent spike in the unemployment rate. That’s quite a steep butcher’s bill. Moreover, some establishments are simply transitioning to electronic kiosks for orders to help blunt the inevitable rise in overhead costs due to these increases. Still, Democrats will push for these economically deficient policy proposals because they sound good, it looks good, and people buy into it hook, line, and sinker. If you’re against it, prepare to be painted as anti-poor and heartless—which is exactly how Democrats want to portray Republicans...
(Excerpt) Read more at townhall.com ...
