How many stories do we need that showcase the stupidity of minimum wage?
The last time Congress passed a bill raising the minimum wage in 2007, Democrats hailed it as a win for low-wage workers, and said it had no real downside:
“Raising the federal minimum wage will not harm the economy or employment,” senators said in a statement, noting that after the prior increase, the economy had averaged 248,000 new jobs per month for four years.
Don’t worry about price increases of products, and what imbecile Leftist would have anticipated that they would lose jobs.
When the wage went from $5.15 to $7.25 in the span of two years, it kept more than 1 million people out of work, according to a new working paper from Jeff Clemens and Michael Wither of the University of California at San Diego.
Clemens and Wither used data from the Census Bureau’s Survey of Income and Program Participation to estimate the degree to which the minimum wage bumps affected “targeted” workers — those most likely to be affected by these bumps. They were able to take advantage of the fact that many states set their minimum wage higher than the federal minimum, so when a federal minimum wage hike takes effect the actual impact varies state by state. By comparing outcomes in states with large minimum wage hikes to those with small ones, they calculated how much the higher minimum wage affected the labor market.
So Obama wants $10.10 and the Fed says that will cause at least another one million jobs to be lost.
We reported about the $15 minimum wage sodomy of capitalism occurring in Seattle, and who knows what the carnage would be.