New York Governor Andrew Cuomo wants to increase the minimum wage. He says that the numbers don’t add up – the cost of living is too high and wages are too low, as if nobody noticed the cost of living skyrocketing. The problem is, by raising the cost of doing business, fewer entry level jobs will be created. He would be legislating entry-level jobs out of existence.
The reality is that fewer than 20% of people who earn the minimum wage are poor, and most poor people already earn more than the minimum wage.
It so happens that the Employment Policies Institute has just released a new report on the effects of minimum wage hikes, and it’s co-authored by David Neumark, a labor economist at the University of California-Irvine and a leading authority on the employment effects of minimum wages. Mr. Neumark and his co-author, J.M. Ian Salas, describe how minimum wage increases tend to price younger and less experienced workers—i.e., “the most vulnerable”—out of the labor force.
“The research record still shows that minimum wages pose a tradeoff of higher wages for some against job losses for others,” write the authors, “and that policymakers need to bear this tradeoff in mind when making decisions about increasing the minimum wage.” (Read More)
This is typical of progressive politicians. They push for things that sound good and might garner them some votes, regardless of the disastrous consequences of their policies, which they turn around and blame on somebody else.