Thursday, February 11, 2021

The Bad Economics Behind A $15 Minimum Wage; CBO: Here's How Much Employment Would Be Lost Under Biden's $15 Minimum Wage, and related stories

 Illustration: Alexander hunter/The Wash Times
The bad economics behind a $15 minimum wage:
The $15 minimum wage is once again a front-page story.
Congressional Democrats, egged-on by the newly minted Biden administration, are working to more than double the federally mandated earnings floor, as well as eliminate the credit for tip income. That policy would raise server labor costs for restaurants by up to 600 percent. While the idea probably won’t survive a procedural hurdle in the latest incarnation of stimulus, the idea is far from being DOA.
The damage of a monster jump in labor costs is predictable in any industry. It accelerates the arrival of what Austrian economist Joseph Schumpeter called “creative destruction.” The creative part is the introduction of self-service.
I’ve chronicled the deep flaws associated with minimum wage hikes in these pages before. The consequences are well documented. Much to the chagrin of labor activists, a 2021 review of the academic literature dating back roughly 30 years consistently finds most economists connect the dots between big wage increases and fewer entry level jobs. --->READ MORE HERE
Jim Watson - AFP / Getty Images
CBO: Here's How Much Employment Would Be Lost Under Biden's $15 Minimum Wage:
President Joe Biden has already cost America plenty of jobs with his radical climate policies. Now, his proposal to raise the minimum wage is set to add even more job losses.
According to the Washington Examiner, a Congressional Budget Office report found that increasing the federal minimum wage to $15 an hour would cause a net loss of 1.4 million jobs in just four years.
“Higher wages would increase the cost to employers of producing goods and services,” the report said.
“Employers would pass some of those increased costs on to consumers in the form of higher prices, and those higher prices, in turn, would lead consumers to purchase fewer goods and services. Employers would consequently produce fewer goods and services, and as a result, they would tend to reduce their employment of workers at all wage levels.” --->READ MORE HERE
Follow links below to related stories:

CBO: $15 minimum wage would kill 1.4 million jobs

Expert Details 6 Horrible Consequences of Biden's $15 Minimum Wage Proposal

Putting ‘heroes’ out of work with a mandatory wage hike

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