What is the Tunnel Wall?

.........................A timely collection of conservative articles about corrosive liberal influences on politics and culture in America ......................

Thursday, June 29, 2017

Seattle Minimum Wage Hike Backfires Hurting Low Income Workers

Legal Insurrection  increase led to steep declines in employment for low-wage workers”
"The progressive city of Seattle pushed its minimum wage up to $15 dollars an hour but a new study from economists at the University of Washington suggests the measure is hurting the very people it was intended to help.

"This is an issue the left often refuses to understand. If you force a higher wage than the market demands, employers are forced to adjust in ways that are less favorable.
"Ben Casselman and Kathryn Casteel report at FiveThirtyEight:
Seattle’s Minimum Wage Hike May Have Gone Too Far
As cities across the country pushed their minimum wages to untested heights in recent years, some economists began to ask: How high is too high?
Seattle, with its highest-in-the-country minimum wage, may have hit that limit.
In January 2016, Seattle’s minimum wage jumped from $11 an hour to $13 for large employers, the second big increase in less than a year. New research released Monday by a team of economists at the University of Washington suggests the wage hike may have come at a significant cost: The increase led to steep declines in employment for low-wage workers, and a drop in hours for those who kept their jobs. Crucially, the negative impact of lost jobs and hours more than offset the benefits of higher wages — on average, low-wage workers earned $125 per month less because of the higher wage, a small but significant decline.
“The goal of this policy was to deliver higher incomes to people who were struggling to make ends meet in the city,” said Jacob Vigdor, a University of Washington economist who was one of the study’s authors. “You’ve got to watch out because at some point you run the risk of harming the people you set out to help.” . . .

From Joe Newby:
"The $15 minimum wage has motivated McDonald’s toward an automated kiosk strategy, laying off up to 2500 minimum-wage workers. This has sent stocks soaring. This is what you get with liberalism."

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