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Category: Undeniably Right Undeniably Right
Published: 07 June 2019 07 June 2019

The fallacy of increasing the minimum wage to help low wage workers has been proven to be just that, a fallacy, time and time again. Yet more and more governmental bodies at every level continue to push for an increased minimum wage, even though they realize it is actually hurting the very people they want to help.

Seattle was not the first city to implement such a plan but they may be one of the first to release the results of a comprehensive survey into the results. The analysis of the data and the city administration's reaction tell us everything we need to know about minimum wage laws and politicians.

The study gathered data from low wage workers and employers as well as governmental entities. Seattle had implemented a staggered increase starting at $11 and progressing to $13 currently. An analysis conducted by University of Washington professor Jonathan Meer revealed that workers in the target demographic actually lost 3.5 million hours per quarter after the minimum wage laws took effect. This was fairly evenly attributable to those that lost their jobs and those that saw a reduction in hours.

Among those that did keep their jobs, there was an average reduction in their paychecks of $125 a month. There were some that saw an increase in income, but of those that did, over 70% were working more hours to make up for the employees that were let go.

Of course, the restaurant industry was hit the hardest, especially in loss of jobs. A number of restaurants closed their doors because they couldn't successfully pass on the increased costs to their customers. Remember, it wasn't just their labor costs that increased, but the costs of many goods and services they purchased increased as well, which was directly attributable to the wage laws.

We've seen this scenario replayed in Los Angeles, San Francisco, New York, Santa Fe,, and everywhere else it has been tried. Despite the anecdotal and empirical evidence, more governmental bodies continue to push for an increased minimum wage. And those that have tried it and failed, don't abandon it.

In fact the Seattle Minimum Wage Report Team didn't like the results of the study they commissioned so they contracted with the University of Berkeley to give them a 2nd analysis along with suggestions as to how to 'tweak' the laws so that it will be successful. More evidence that it's not about the truth, it's about perception and pushing an agenda.

Do you think the increase in the homeless populations of the aforementioned cities has any cause and effect relationship with the implementation of these laws?