Increasing the minimum wage makes people lose jobs

The GOP is offering nothing.

benefits of raising minimum wage

Katz and Alan B. Getty In the past, as a society, we had viewed the entry-level jobs as a way to earn some money during school and over the summer.

negative effects of raising minimum wage on economy

But really, that represents just 0. But Shierholz, as well as Arindrajit Dubeanother economist who studies the minimum wage, say that the CBO should have paid more attention to more recent and higher-quality studies about wage hikes that showed lower effects on employment.

Michael F.

Job losses due to minimum wage increase

None of this has anything to do with the problem a higher minimum wage is meant to address, which is that low-wage workers often have to depend on government programs like food stamps , can't afford housing , and are forced into dire life circumstances. This does not include insurance costs, benefits, payroll and other taxes. Customer scans his Amazon Go cellphone app at the entrance as he heads into an Amazon Go store in Seattle. Michael F. The minimum wage jobs were primarily an entry point into the workforce. They will weigh the future unknown costs associated with additional increases, coupled with the ever-increasing insurance costs, plus the time-consuming task of finding employees, training them and dealing with turnover. The government is supposed to ensure that businesses pay their workforces a bare minimum, but Congress has shirked that duty for twelve years. Conservative-penned columns in the Wall Street Journal, the Republican Party's Twitter account , libertarian Reason magazine , and a Politico newsletter presented by the anti-wage increase National Restaurant Association all highlighted the job-loss numbers, for obvious reasons. Getty In the past, as a society, we had viewed the entry-level jobs as a way to earn some money during school and over the summer. While some people may benefit with an increase in their hourly earnings, other employees will be let go to save costs. Certain menial jobs were never intended as a means to provide for a family. Carefully controlling for more factors than previous minimum wage studies, the researchers found the answer is no. Another that examined increases in 1, counties over 16 years found no effect on employment.

With the increased prices, customers may elect to take their business elsewhere. Arindrajit Dube, T.

Increasing the minimum wage makes people lose jobs

If the debate over a minimum wage hike centers on how many jobs will really be "lost," that in itself is going to be a win for people who oppose it. Another that examined increases in 1, counties over 16 years found no effect on employment. But a closer look at what the CBO said, and insight from economists who study minimum wage increases, actually paint a much rosier picture. None of this has anything to do with the problem a higher minimum wage is meant to address, which is that low-wage workers often have to depend on government programs like food stamps , can't afford housing , and are forced into dire life circumstances. The government is supposed to ensure that businesses pay their workforces a bare minimum, but Congress has shirked that duty for twelve years. Public sentiment is overwhelmingly on the side of a minimum-wage increase. But even if a higher minimum wage killed a few million jobs, would it still be worth it? Carefully controlling for more factors than previous minimum wage studies, the researchers found the answer is no. At a congressional hearing for the Raise the Wage Act, Terrence Wise, a fast-food worker and wage activist from Kansas City, described going through periods of homelessness even though he and his wife both worked: "Try waking up in the morning and getting ready for work and school in a parking lot with your family of five. However, as anyone who lives in a suburb recognizes, there are many people working at jobs that would ordinarily pay minimum wage, but unscrupulous business owners compensate people in cash far under the minimum wage. A recent paper found that the restaurants that are driven out of business after cities raise their minimum wages are the ones with the lowest customer ratings. The GOP is offering nothing. The next stop was Home Depot to get supplies for a project and, once again, we checked ourselves out without the assistance of a cashier. The minimum wage is partly to blame for the persistence of financial instability.
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The Unintended Consequences Of Raising Minimum Wage To $15