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Three years ago, the city of Seattle voted to gradually raise its minimum wage to $15 an hour in the name of human decency and basic fairness. Several cities, including New York and Los Angeles, have done the same thing. Critics argue that boosting wages by bureaucratic diktat leads to fewer hours and jobs for low-income and low-skilled workers.
Now what The Washington Post calls a “very credible” study from researchers at the University of Washington finds that the critics are right. The Post calls this bad news for liberals. But the real victims are low-skilled workers.
The study finds that when wages were increased to $13, employers cut hours by 9 percent. That means that low-skilled workers saw their monthly compensation decrease by an average of $125.
The findings may surprise progressives who believe that the only limit to higher pay for workers is the greed and selfishness of business owners. But it doesn’t come as a surprise to those who remain unconvinced that the law of supply and demand can be amended by city councils. Labor is simply another cost for any business, and when the price of something goes up, we tend to buy less of it.
And Arizona’s minimum wage went up July 1 to $10 from Proposition 206 passed by voters last year. link
Link: http://reason.com/reasontv/2017/07/05/seattles-minimum-wage-hurts-workers
Dagny's Desk 