Minimum Wage Increase Results In Jobs Decrease?
Rep. Jesse Jackson Jr., D-Ill., wants to again raise the minimum wage -- from $7.25 to $10.00 -- despite an abundance of experience that doing so accomplishes exactly the opposite of what minimum wage advocates claim is their objective: to make low-income earners better off.
Why doesn't McDonald's increase the price of Big Macs if they want to sell more? It's pretty obvious that consumers will buy less of a product when its price goes up.
So why is it not equally obvious that consumers of labor -- employers -- will buy less labor if the price of that labor increases?
The data bear out this very simple logic. Increases in the minimum wage highly correspond with increases in unemployment for the young and unskilled.
University of Michigan economist Mark Perry has calculated that over the period of the last minimum wage increase -- increasing it from $5.15 in 2007 to $7.25 in 2009 -- teen unemployment increased 5 percentage points more than the general increase in unemployment over that period.
Read More: http://www.gopusa.com/commentary/2012/06/18/parker...
Top Opinion
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Wahvlvke 2012/06/18 17:18:35
+3Expecting liberals to indulge into that mystical and impossible to understand realm of logic is just too much ... even if you hit them in the face with facts. Besides, union wages are tied to the minimum wage and raising it raises union pay ... and union dues ... and union contributions to crats. Are we onto something here?
More polls by ~ The Rebel ~
- Professor Wizard 2012/06/18 18:03:38
+1Nationally, I have no idea... but locally - - around here it wouldn't do squat, because most jobs here pay $10 or more.reply - wicked soda boy 2012/06/18 17:25:36 (edited)+2No groups are helped by increased minimum wage laws. In the mid-term and long-term, all that is accomplished is a devalued currency, and higher consumer prices. Yet the DNC brings this out every 4 years to fool people into thinking that their policies are "compassionate", or that they actually want to lift people out of poverty. The only thing that consistantly lifts people out of poverty is free enterprised mixed with individual effort and achievement - NOT government manipulation of wages.reply
- Willski 2012/06/18 17:23:13+1many politicians lack logic.reply
- Wahvlvke 2012/06/18 17:18:35+3Expecting liberals to indulge into that mystical and impossible to understand realm of logic is just too much ... even if you hit them in the face with facts. Besides, union wages are tied to the minimum wage and raising it raises union pay ... and union dues ... and union contributions to crats. Are we onto something here?reply
- Jackie G - Poker Playing Pa... 2012/06/18 17:12:56+2Yes, and hard to understand why some have not figured this out.reply
- HarleyCharley 2012/06/18 17:12:19What would you expect....reply
