Here’s What KJP Had to Say When Asked About Biden Commuting Hunter’s Sentence
Federal Reserve Makes an Announcement About Interest Rates
Media Repeatedly Shed Tears for Repeat Offender Hunter, and a Hockey Writer Finds...
The Economist Took a Close Look at the NYT's Bestseller List and Found...
Federal Judge Blocks DeSantis Ban on Transgender Care Calling it 'Unconstitutional'
Biden Vetoes Chance to Give U.S. Troops a Pay Raise Despite Spending Seven...
State Votes to Block Candidates From Office After 81 to Keep People Like...
Joe Biden Thinks Felon Son Is Being Victimized
House Votes to Hold Attorney General Merrick Garland in Contempt
Voters In This Crucial Blue-State Explain Why They Are Voting for Trump
How House Republicans Are Standing With Israel: NDAA Amendments
You Won’t Believe How This High School Spent a $10,000 Grant
Turley Weighs in on How Pelosi's Admissions Highlight Credibility Issues of J6 Committee
Lia Thomas Loses Legal Challenge to Compete in the Olympics
Hamas-Supporting Anti-Semites Are Somehow Getting Even More Brazen and Vile

Killing Minimum Wage Jobs

Tomorrow, just as Congress has mandated, the national minimum wage will increase 70 cents to $7.25 an hour, which on the surface, appears a positive step for those workers in this wage bracket. However, economist David Neumark of the University of California, Irvine "
calculates that the 70-cent-per-hour minimum wage hike this month would kill 'about 300,000 jobs for those between the ages of 16-24.'"

The matter of increasing the minimum wage is typically contentious because, on the surface, at least, it's tough to see how workers making more money can be bad for the overall health of our economy or for those workers. But if you dig a little deeper, if employers are forced to pay all their employees more, then these same employers can't afford to hire as many workers leading to increased unemployment.  Particularly in an economy like this, the pie doesn’t get any bigger, so if you’re forced to hand-out larger slices, you’ll be handing out fewer of them.

Neumark along with William Wascher of the Federal Reserve Bank have done extensive research on the effects of minimum wage hikes on unemployment, and they have come to two conclusions:

1 - "A sizeable majority of the studies give a relatively consistent (though not always statistically significant) indication of negative employment effects.”

2 - "Studies that focus on the least-skilled groups [i.e., teens, and welfare moms] provide relatively overwhelming evidence of
stronger disemployment effects."

As the Wall Street Journal points out: 

“[T]hat single mom can't collect those checks if she doesn't have a job, and the tragedy of a higher minimum wage is that it will prevent thousands of working moms striving to pull their families out of poverty from being hired in the first place.”

If raising the minimum wage leads to increased unemployment, then aren't we hurting more Americans than we're helping, especially when unemployment already sits at a staggering 9.5% and is only on the rise? One of the shortfalls of legislation that comes from Washington is that it's often too short-sighted and focused on emotion rather than logic.

Join the conversation as a VIP Member


Trending on Townhall Videos