Category Archive: Minimum Wage Laws

Aug 09

Venezuelan minimum wage was raised 108,000 % in 20 years, yet today, “Anyone in Venezuela would be happy to eat out of American trashcans”

Venezuelan economist Raefael Acevedo recently addressed the Mises Institute. See here. Between 1999 and 2017, said Acevedo, the Venezuelan minimum wage was raised 38 times: a 108,000 % increase. Yet “[a]nyone in Venezuela would be happy to eat out of American trashcans.”

Jul 05

Seattle’s experiment with the $15 minimum wage results in greater poverty, unemployment

Three years ago, the city of Seattle voted to raise its minimum wage to $15 per hour. As usual, government-trusters promised that the minimum-wage increase would lift the poor out of poverty. But a new study by the University of Washington’s School of Public Policy and Governance finds the opposite. The study concludes that there …

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Apr 16

San Diego spikes minimum wage; 4,000 restaurant jobs lost almost immediately

When the price of any commodity rises, demand falls. This iron law of economics applies even to labor. Advocates of minimum wage laws (which allow government rather than the market to set wages) believe in a fantasy: that when politicians order wages to increase they are helping poor people. The reality is precisely the opposite. …

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Aug 27

D.C. Minimum Wage Hike has already Cost 1,400 Jobs

Trusters of government rarely think beyond what Thomas Sowell calls “Stage One.” The District of Columbia–like many regions of the United States–has recently enacted an increased minimum wage for all D.C. workers. Employers must pay them $11.50 per hour. You know, . . . to help the poor. It seems the minimum wage increase has …

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Apr 18

UC Berkeley Forced to Cut 500 Jobs After $15 Minimum Wage Hike

More than 100 peer-reviewed studies have found that increasing (or establishing) a minimum wage law causes higher unemployment. Unemployment, in turn, is correlated with a number of measures of social ills, including increased suicide rates, rates of first admission to mental health facilities and rates of alcoholism. Now, just weeks after the State of California …

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Jan 21

Walmart losing millions, closing stores where minimum-wage laws are harshest

In case anyone needed further evidence that minimum-wage laws create unemployment, here is another story about Wal-Mart. Wal-Mart once had a thriving business model. It offered cheap goods at a central location. But Wal-Mart has come under attack from anti-business voices for years. In response, Wal-Mart has increased its pay rates for its labor (which …

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Dec 15

Wal-Mart Shares Plummet 30 % after Company Hikes Wages

Years of criticism and attacks have taken their toll on Wal-Mart. “Back in February, CEO Doug McMillon of Wal-Mart agreed to raise his company’s pay for entry-level employees to almost $9 an hour come April and up to $10 early the year after.” See here. Announcing the company’s third-quarter results in November, Mr. McMillon had …

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Oct 27

Union loudly pushes $15 minimum wage–then quietly seeks its own “exemption” from its impacts!

Socialists and trusters of central planning are notorious hypocrites. But here is a story about the AFL-CIO that “takes the cake.” The AFL-CIO loudly promotes raising minimum wages around the country. (Some 100 peer-reviewed economic studies have established that raising (or imposing) a minimum wage is linked with higher unemployment rates–especially for those at the …

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Sep 12

Initial research shows minimum wage increases in Seattle and San Francisco have cost thousands of jobs

Supporters of minimum wage laws are often hopelessly illiterate regarding basic laws of economics. In recent election cycles, however, advocates of minimum-wage hikes have won some huge “victories” in such cities as Seattle and San Francisco. The Seattle City Council, for example, imposed a $15-per-hour minimum wage on all employers in the city last year. …

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Sep 08

Wages have nothing to do with miserliness or generosity

The brilliant economist John C. Goodman is out with another brilliant column. This one about the foolishness of minimum wage laws. See here. : To summarize: a firm that pays workers more than they are worth cannot survive because it cannot match the prices and the rate of return to investors of its rivals. A …

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