This morning's data gives ammunition to the mayor's opposition. The University of Washington released its second study, this one covering the increase from $11 an hour to $13. And this study found huge effects: For every 1 percent increase in their hourly wage, low-wage workers saw a 3 percent reduction in the number of hours worked. As a result, they lost about $125 in earnings a month, clawing back the entire gain from the earlier hike and more.Anyone who has studied economics is unsurprised. As compassionate as it sounds, raising minimum wage is usually bad for those supposed to benefit. If this is such a good idea, why not set it at $100/hour, and make everyone rich?
Tuesday, June 27, 2017
Minimum Wage Effects
6/26/17 Bloomberg. Seattle raised minimum wage to $15/hour to help low-wage workers:
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If my Sister-in-Law were to see this, Bloomberg would be dismissed as just another rich guy making up stuff to support his goal of having all the money in the world. If she were to actually consider the finding, it might butt up against her idea that every business has a money-printer in the basement so they would automatically absorb the increased cost and no one would be fired or not hired, and no one would have hours cut.
ReplyDeleteWithout any doubt, Leftists believe in (apologies to R.L. Stevenson) A Child's Garden of Economic Theories.