The Patriot Post® · Minimum Wage Hikes Are Cooking Jobs

According to the American Enterprise Institute’s Mark Perry, “Since the DC minimum wage increased in July 2015 to $10.50 an hour, restaurant employment in the city has increased less than 1% (and by 500 jobs), while restaurant jobs in the surrounding suburbs increased 4.2% (and by 7,300 jobs).”

But a more detailed look paints an even gloomier picture. “An even more dramatic effect has taken place since the start of this year,” Perry continues. “DC restaurant jobs fell by 1,400 jobs (and by 2.7%) in the first six months of 2016 between January and July – that’s the largest loss of District food jobs during a 6-month period in 15 years. Perhaps some of those job losses were related to the $1 an hour minimum wage hike on July 1, bringing the city’s new minimum wage to $11.50 an hour. In contrast, restaurant employment outside the city grew at a 1.6% rate in the suburbs (and by 2,900 jobs) during the January to July period.”

Perry found a similar effect in Seattle. Last August his research revealed a precipitous decline in restaurant employment in the city shortly after minimum wage hikes began taking effect — a problem that a University of Washington study shows continues to manifest itself in that and other industries. Why do policymakers continue to ignore the growing evidence depicting the ill effects of artificially driven wages? Because their gullible constituency allows them.