Seattle’s Minimum Wage Has Been a Disaster, as the City’s Own Study Confirms
Foundation for Economic Education (FEE)
June 27, 2017
The Seattle Minimum Wage Study, a study supported and funded in part by the Seattle city government, is out with a new NBER paper evaluating Seattle’s minimum wage increase to $13 an hour and it finds significant disemployment effects that on net reduce the incomes of minimum wage workers.
…These findings, examining another year of data and including the increase to $13/hr, are unequivocal:
the policy is an unmitigated disaster.
The main findings:
- The numbers of hours worked by low-wage workers fell by *3.5 million hours per quarter*.
- The losses were so dramatic that this increase “reduced income paid to low-wage employees of single-location Seattle businesses by roughly $120 million on an annual basis.”
…I don’t envy the backlash this team is going to face for daring to present results that will be seen as heresy. I know that so many people just desperately want to believe that the minimum wage is a free lunch. It’s not. These job losses will only get worse as the minimum wage climbs higher, and this team is working on linking to demographic data to examine who the losers from this policy are. I fully expect that these losses are borne most heavily by low-income and minority households.
Read the entire article HERE.
It doesn’t take a piece of paper or a think tank study to figure this one out…supply when faced with shortages finds creative ways to afford to produce the supply…in the end it is the workers and purchasers that suffer–frontloaded and/or backloaded–businesses who plan on remaining in business and make a profit have to function and if they can’t afford their workers then they either replace them or delete them. There is no high level intelligence needed to figure that out. But then it has become painfully obvious that Liberals have no common sense, integrity, or intelligence.