Category Archive: Minimum Wage Laws

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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Jul 28

New study shows recent minimum-wage hikes have caused the loss of 700,000 jobs

More than a hundred peer-reviewed economic studies have established that raising (or imposing) a minimum wage is correlated with increased unemployment. The only studies purporting to show otherwise are those that occurred in unusual economic circumstances (such as in a “boom-town” situation where wages were naturally rising rapidly anyway). The strong correlation between minimum-wage laws …

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Apr 01

Almost A Hundred Peer-Reviewed Studies Establish Correlations between Minimum-Wage Laws and Unemployment Rates

When politicians vote to impose or raise minimum wages, they put poor people out of work and INCREASE poverty. No one has ever calculated how many economic studies establish the correlation between minimum-wage laws and unemployment rates. But the number is in the many dozens and probably in the hundreds. Minimum wage laws have done …

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