I am fully confident that my readers are aware of the liberal push toward a $15 minimum wage (the so-called “Fight for Fifteen” – they’re so much better at slogans than conservatives). And you likely heard that the first “experiment” (Seattle is “progressively” increasing its minimum wage to $15) just got punched in the eye by the economists they hired to evaluate its effects.
What were those effects, ask you? Well, let’s review a few of the findings, answer I.
[Sources: Study: Seattle Minimum Wage Increase Reduced Low-Wage Income, by Mark Hemmingway (and thanks to HP for sending this to me); “Fake research”: Seattle Mayor knew critical minimum wage study was coming so he called Berkeley ‘economists,’ by Tyler Durden]
A principle of economics is supply and demand. Basic supply and demand suggests that sharply raising wages is going to lead to fewer jobs and other cutbacks. Guess what? It appears that the Seattle experiment not only did not change the law of supply and demand (sorry for the double negative), it confirmed it. Recall that Seattle was “progressively” raising the minimum wage – now at $13 (the federal minimum wage is $7.25).
The study was done by economists at the University of Washington – not exactly a bastion of conservative thought.
[From the study] Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent. Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016.
David Autor, an economist at the Massachusetts Institute of Technology, who analyzed the study stated, “This strikes me as a study that is likely to influence people,” stating that the research is “very credible” and “sufficiently compelling in its design and statistical power that it can change minds.”
What to do? What to do? The one thing you can always count on from liberals, you will NEVER hear them say, “Oops, sorry about that!” Not a chance! What do they do instead, ask you?
As reported from the Seattle Weekly, when things don’t “pan out” according to the liberal playbook, liberals simply throw out the “old pan” and buy a new one. The Office of the Mayor of Seattle, when informed by the University of Washington economists regarding the dismal results before publication, immediately hired Berkeley economists to defame his own study. Recall that this was a study already paid for by Seattle residents.
In the acknowledgments to the hastily purchased and performed Berkeley study, they were required to write: This report was prepared at the request of the Mayor of Seattle!
I stand by what I said. Show me a single “give away” that liberals subsequently retracted and I’ll remove this post.