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More Data that the Minimum Wage Kills Jobs December 17, 2015 8:00 AM | Tagged as Neumark, NY Times
WSJ 16 December 2015, Page A17 “The Evidence is Piling Up That Higher Minimum Wages Kill Jobs”, by David Neumark
Neumark is professor of economics at The University of California at Irvine. In the referenced article, Neumark notes the rapid and rabid increase in the left’s proposal for an increased minimum wage. As recently as 2013, they advocated $9 per hour. Now it’s $15. One wonders from what source the left divines these numbers. There is no foundation for either. It is a sheer political give-away to make people feel good about voting for the leftist agenda. One cynical question from The Biz Bucks Guy: Why stop at $15. What is wrong with $20? While we’re at it, how about $25?
Thanks to Prager University’s recent video ”Does it Feel Good or Does It Do Good?”, we learn that the NY Times in 1987 had an editorial entitled “The Right Minimum Wage: $0.00. The Times stated, “There is a virtual consensus among economists that the minimum wage is an idea whose time has past. Raising the minimum wage by a substantial amount would price working people out of the job market.” Indeed, basic micro economics tells us that raising the price of anything causes demand for that item to go DOWN. Raising the price of low skilled workers lowers demand for them in the form of job cuts.
The Biz Bucks Guy bought a Burger King Whopper in Copenhagen in 2014. The price was over $10. They have a minimum wages of $23 per hour. Sure tasted great!
Neumark negates President Obama’s nonsensical whopper of his own that “there is no solid evidence that a higher minimum wage costs jobs.” Neumark has studied the studies. With few exceptions, economists agree -- as the NY Times admitted in 1987 -- that minimum wages thwart job creation. Economists have written scores of papers for over 100 years all agreeing with the notion that job creation is killed by the minimum wage laws. As The Biz Bucks Guy has written before, the history of minimum-wage laws in the US is no altruistic event. Congressional representatives from Massachusetts initiated the idea to stop textile manufacturing from migrating to the Southern states where labor was cheaper. It was bald-face regional politics, nothing more, nothing less.
It’s time for the uninformed to learn basic econ before they cast their vote for the “feel good” stuff.
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