Anybody with an IQ above room temperature understands that companies only hire workers when they expect to generate net revenue (i.e., the total receipts associated with a new worker are expected to be higher than the total costs). That’s why it was so reprehensible for Congress to approve a 40-percent hike in the minimum wage – a step that was guaranteed to kill jobs. The Wall Street Journal’s editorial page reports on new research showing 100,000-plus jobs were wiped out. This awful legislation was approved in 2007, and all politicians associated with that choice should be ashamed of themselves.
Economic slowdowns are tough on many job-seekers, but they’re especially hard on the young and inexperienced, whose job prospects have suffered tremendously from Washington’s ill-advised attempts to put a floor under wages. In a new paper published by the Employment Policies Institute, labor economists William Even of Miami University in Ohio and David Macpherson of Trinity University in Texas find a significant drop in teen employment as a direct result of the minimum wage hikes. The wage hikes were implemented in three stages between 2007 and 2009, and not all states were affected because some already mandated a minimum wage above the federal requirement. But for the 19 states affected by all three stages of the federal wage increase, “there was a 6.9% decline in employment for teens aged 16 to 19,” write the authors. And for those who had not completed high school, “we estimated that the hikes reduced employment by 12.4%,” which translates to about 98,000 fewer teens in the work force. After isolating for other economic factors and broadening their analysis to include all 32 states affected by any stage of the federal wage increase, the authors conclude that “the federal minimum-wage hikes reduced teen employment by 2.5% translating to approximately 114,400 fewer employed teens.”
[…] explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. […]
[…] it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work […]
[…] it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work […]
[…] it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work […]
[…] higher minimum wages lead to more unemployment (see here, here, here, here, here, here, here, here, here, and […]
[…] Some folks, though, may not be overly impressed by theory. So how about empirical research. […]
[…] it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemploymentby making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemploymentby making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] recently explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] sentient human beings should know higher minimum wage laws will mean more unemployment. Just ask them, for instance, what would happen if the minimum wage was raised to $100 per hour. […]
[…] video explains the underlying economics of the minimum wage. We also have plenty of evidence (see here and here) that unemployment rose following the most recent hike in the minimum […]
[…] many workers leave the labor market? Was it the overall increase in the burden of government? The increase in the minimum wage? The disability scam? Subsidized unemployment? The welfare […]
[…] many workers leave the labor market? Was it the overall increase in the burden of government? The increase in the minimum wage? The disability scam? Subsidized unemployment? The welfare […]
[…] many workers leave the labor market? Was it the overall increase in the burden of government? The increase in the minimum wage? The disability scam? Subsidized unemployment? The welfare […]
[…] explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] recently explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] recently explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]
There’s also Barney frank, Freddie Mac and Fanny Mae which bush did not start
Although George bush is not blameless, I still feel he is given too much of the burden and blame
[…] video explains the underlying economics of the minimum wage. We also have plenty of evidence (see here and here) that unemployment rose following the most recent hike in the minimum […]
[…] video explains the underlying economics of the minimum wage. We also have plenty of evidence (see here and here) that unemployment rose following the most recent hike in the minimum […]
[…] recently explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]
[…] explained how the minimum wage destroys jobs, and I’ve written on several occasions why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And […]