If Minimum Wage Goes Up, Jobs and Economy Go Down
A new report shows seven million fewer jobs at $15/hour.
A new report on the economic impact of raising the federal minimum wage to $15 per hour shows what we’ve always stressed — it will cost jobs. This $15 per hour minimum wage was a prominent message in Bernie Sanders’ campaign, and the new, higher dollar amount has gradually been adopted by Democrats in their quest to create what they’ve dubbed a “living wage.” According to the new study, however, this would have the net effect of seven million jobs lost, as companies would need to trim their work force to afford the higher wages. Generally speaking, those workers most likely to be laid off would be younger and less skilled. Once again, the Left’s views have little in common with sound economic principles and more to do with the Marxian ideals of fairness.
Meanwhile, there’s grim news from one of the leading economic indicators on the health of the economy. Paul Westra, a research analyst for Stifel Financial Corp., recently said that he was “decidedly bearish” on the restaurant industry, which he believes is beginning to reflect the start of a recession. He goes on to explain that restaurants are “like the canary that lays the recessionary egg.” Restaurants aren’t the cause of recessions, but they’d certainly feel the effects of a $15 minimum wage.
Evidently, Democrats would rather see seven million fewer jobs so long as they can notch the political win of a $15-an-hour minimum wage.
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