I can see why the likes of Tide Pod Evita and Ilhan Omar prate and gabble on about minimum wage increase. It’ll never cost any of them anything.
But when I hear Gen-Y and younger people yapping about it, I am almost tempted to ask – have any of you actually thought about this…
…and then I remember.- nobody’s taught critical thought in decades. It’s why the Democrats bounced back after the nineties.
Anyway – it turns out the actual economy obeys that most basic Econ101 principle – you can not make someone pay more or less for something than they would naturally pay for it without having consequences.
From an article that one long pullquote after another:
Some new research — “Evidence of The Unintended Labor Scheduling Implications of The Minimum Wages” — shows that every $1 an hour increase in government-mandated minimum wages (“political wage-setting”) leads to the following (mostly) adverse outcomes:
And those outcomes includew:
- a 27% increase in the total number of workers scheduled to work each week
- a 20.8% decrease in the average number of hours each employee worked per week
- a 13.6% decrease in the total wage compensation of an average minimum wage worker
- a 23% decrease in the percentage of employees working more than 20 hours per week (making them eligible for retirement benefits)
- a 14.9% decrease in the percentage of employees working more than 30 hours per week (making them eligible for health care benefits)
- a 33% increase in fluctuations in the number of hours worked per week
- a 9.5% increase in fluctuations in the number of hours worked per day
- a 9.8% increase in fluctuations of shift start times and
- average net losses of at least $1,590 per year per employee, equivalent to 11.6% of workers’ total compensation (assuming that workers were able to use their reduced hours to work a second job — an assumption which may not hold true for many employees).
It might be tempting to say “people who advocate for higher minimum wages are trying to make the poor poorer and more dependent”.
And I”m mat a loss for why they’d be wrong.