Fed Study Concludes Raising Minimum Wage Can Cost 200,000 Jobs!

Editor:  Show me the authority in the Constitution for Federal minimum wage controls and we can have this conversation…. Otherwise the discussion is over.  This is yet another diversion to keep American’s divided and focused on something other than the betrayal of the people by their government.

15now

 

Liberals have been saying for years that raising the minimum wage is great for jobs and the economy.

Despite the logic that increasing labor costs to business creates a de facto drive to reduce labor, they’ve stuck to their guns – even going so far as to advocate almost doubling the minimum wage to $15 per hour nationwide.

Well, a new study has shown that raising the minimum wage has a much larger impact on employment than anyone believed.

The Federal Reserve Bank of San Francisco released a study Monday that raising the minimum wage can cost upwards of 200,000 jobs nationwide.

“[T]he overall body of recent evidence suggests that the most credible conclusion is a higher minimum wage results in some job loss for the least-skilled workers—with possibly larger adverse effects than earlier research suggested,” the report states.

Since the last federal minimum wage increase in 2007 to $7.25 per hour, 23 states have raised their wages higher than the federal level. By last year, the average wage in those states was more than 11 percent higher than the federal minimum. The Washington Examiner reports:

In advocating a higher minimum wage, White House economists have highlighted a number of recent studies that have all found that minimum wage increases have resulted in either no or small job losses. In his analysis, Neumark suggested that some of the newer studies finding that minimum wages don’t hurt employment rely on comparisons between neighboring states that are not actually similar in important ways.

In February of last year, the nonpartisan Congressional Budget Office released a report finding that raising the minimum wage to $10.10 an hour, the level then favored by Obama, and indexing it to inflation would mean 500,000 fewer jobs. Such a hike would also pull 900,000 families above the federal poverty line, the report found.

Real-world evidence of job losses caused by massive increases in the minimum wage abound. In Seattle, they raised the wage to $15 per hour – what Democrats are advocating – and job growth stopped completely.

Most economists say a small increase in the minimum wage – less than ten percent – should have more benefits than drawbacks to the national economy – but massive increases like liberals are promoting would be disastrous.

Robert Gehl

About Robert Gehl

Robert Gehl is a college professor in Phoenix, Arizona. He has over 15 years journalism experience, including two Associated Press awards. He lives in Glendale with his wife and two young children.

TennesseeWatchman.com

 if the watchman sees the sword coming and does not blow the trumpet, and the people are not warned, and the sword comes and takes any person from among them, he is taken away in his iniquity; but his blood I will require at the watchman’s hand.
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