Patriots: For over 25 years, your generosity has made it possible to offer The Patriot Post without a subscription fee to military personnel, students, and those with limited means. Please support the 2022 Independence Day Campaign today.

February 20, 2014

Minimum Wage Increase Decreases Employment

No matter what Democrats say, the minimum wage will always be $0.

Conservatives have argued for years that raising the minimum wage leads to a decrease in employment among those on the bottom rung of the economic ladder, an argument leftists vehemently deny. But a report from the Congressional Budget Office (CBO) projects that a proposed minimum wage increase to $10.10 an hour by 2016 would eliminate 500,000 jobs despite the prospect of enhanced economic activity overall. While that’s a bad scenario, even the best number the CBO could come up with was the increased minimum wage would lead to a “very slight decrease” in employment. Their worst case projection is that one million jobs may be lost.

It’s also worth considering that the increased economic activity, once losses from those who were furloughed, business owners making less profit, and overall higher costs due to the inflationary effects of an artificial wage hike are factored in, would result in a paltry $2 billion increase in real income overall. In part, this is because just 19% of these additional earnings would accrue to families below the poverty line; meanwhile 29% would go to families who make three times the poverty level. In other words, many of those workers who actually make minimum wage – representing less than 2% of the workforce – are those just entering the workforce, meaning they most likely still live with their parents and supplement a far larger household income. The CBO estimates just 2% of those who live in poverty will be lifted out of it by a minimum wage increase. But how many non-minimum wage earners will be forced into poverty by the increased costs?

So why would we engage in what commentator Charles Krauthammer called “a transfer of wealth from some low-income earners to other low-income earners”? Simple – it’s an election year and goodies have to flow freely to those who typically vote Democrat. Either they’ll get a raise or they’ll be enjoying many months’ worth of unemployment payments, a win-win for the lazy and statists everywhere.

Start a conversation using these share links:

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2022 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.