Regarding the impact of minimum wage increases over this period, the director of the Center for Business and Economic Research at Ball State University observed, “Instead of hiring a dozen teens to work a popular summer restaurant or theme park, a company would hire six or less. Instead of filling positions that required no skills, companies were making due with what they had. In the long run, this hurt young, unskilled workers.”
A study from this Center estimates that the minimum wage may have led to elimination of 550,000 jobs.
This is one study, but there are others. And there are many economists of note, including Nobel Prize winners, who have written about the perverse effects of the minimum wage.
Economics has been called common sense made difficult. In the case of the minimum wage, you don’t need fancy models to draw the logical conclusion of what to expect.
Just think how any business owner will behave when the government sets a floor on how much he or she can pay workers. It’s obvious that those at the bottom of the scale will get shut out.
It should be equally obvious that those shut out are the same ones that in all likelihood have dropped out or will drop out of school and whose life can be changed dramatically by having the opportunity to work and acquire skills and build a resume.
If there is anything radical about Michele Bachmann’s stand on the minimum wage, it’s not what she has said, but that she has had the courage to say it.