The folly of raising the minimum wage

The Labour government is set to ratchet up our minimum wage to certainly unsustainable levels.

It is simply ideological, and even National succumbed to pressure on this. But they should actually seek evidence before willy-nilly raising the minimum wage.

Evidence, like that from California, which has shown that raising the minimum wage has been extremely detrimental:

California’s plan to raise its statewide minimum wage to $15 per hour will have devastating effects on the Golden State, according to a new study.

What did the study find?

new study from the Employment Policies Institute found that a $15 minimum wage in California could trigger the loss of more than 400,000 private-sector jobs, decimating California’s workforce. Even that estimate, the study warned, is “conservative.”   

Which job markets will be hit the hardest? The study was unequivocal about that. “The job loss is not spread evenly. Slightly more than one-half of the job loss is projected to be in two industries: accommodation and food services, and retail trade,” the study found.

In addition, it was discovered that for every 10 percent the state increased the minimum wage, employment dropped by two percent, while low-income earners were hit the hardest.

Sounds dire:

What has California done about its minimum wage?

California Gov. Jerry Brown (D) last year signed a bill into law mandating the raise of the state’s minimum wage to $15 across the board by 2023.

The law bumped the state’s minimum wage of $10 to $10.50 this year and will bump it to $11 in 2018. After that, the minimum wage will increase by $1 each year until it reaches the full $15 by 2022. Businesses than employee 25 or less people will be given one extra year to comply.

After the $15 minimum is set, it will continue to rise with inflation.

The loss of jobs didn’t go unpredicted. Economists stated last year when the bill was signed into law that it could cost 5 to 10 percent of low-income, low-skilled workers their jobs.

Why do politicians never listen to experts.

What is sad is that the very people pushing major increases in the minimum wage are unions, and therefore they are advocating for condemning their own workers to unemployment.

 

-The Blaze


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

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