Shocking Surprise: Minimum Wage Hikes Increase Unemployment

I know this will come as a real shock to our regular readers, but it turns out that increasing minimum wage doesn’t actually help the poor very much. It just increases the workload on fewer employees. In other words, it stimulates unemployment: The study published by the National Bureau of Economic Research found that minimum wage increases reduced employment opportunities for low-skilled workers by nearly 6 points during the Great Recession. “This period’s full set of minimum wage increases Read more […]

Seattle’s Minimum Wage Cost City 1,000 Restaurant Jobs in One Month

What was it that we kept saying would happen if we were to enact a high minimum wage? Prices would necessarily rise, business would go down as a result, and people would lose their jobs. We can look at Seattle as sort of a test case of what happens when the government decides that private businesses have to pay a certain amount to their employees. When the government gets involved in wage controls, bad things happen. And it was all predictable. In June of last year, the city of Seattle decided Read more […]