Study Finds Higher Min. Wages Bring Crushing Job Losses For Female And Minority Workers

drypowder

drypowder

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Study Finds Higher Min. Wages Bring Crushing Job Losses For Female And Minority Workers

Anyone who has a basic understanding of elementary-level arithmetic and some common sense can easily explain why raising the minimum wage is bad for employment levels. In a nutshell, higher labor costs simply improve the payback profile of capital investments in technology thus accelerating job losses.

We recently shared the following example regarding California's minimum wage hike from $10 per hour to $15. At $10 per hour and a 10-year payback, employers may be reluctant to invest in new technology. But, at $15 per hour and a 6-years payback, that investment become a no-brainer.
 
drypowder said:
Study Finds Higher Min. Wages Bring Crushing Job Losses For Female And Minority Workers

Anyone who has a basic understanding of elementary-level arithmetic and some common sense can easily explain why raising the minimum wage is bad for employment levels. In a nutshell, higher labor costs simply improve the payback profile of capital investments in technology thus accelerating job losses.

We recently shared the following example regarding California's minimum wage hike from $10 per hour to $15. At $10 per hour and a 10-year payback, employers may be reluctant to invest in new technology. But, at $15 per hour and a 6-years payback, that investment become a no-brainer.
Click to expand...

Simple arithmetic also shows that an increase in the minimum wage increases the cost of goods, which in turn nullifies any benefit the employees might receive from having more money in their pocket.

And simply following a chain of reasoning from that fact should tell any simpleton that in the end it actually adversely effects the people who were making more than minimum wage as they will not get a pay increase but have to suffer the increase in the cost of goods.
 
Chdamn said:
Simple arithmetic also shows that an increase in the minimum wage increases the cost of goods, which in turn nullifies any benefit the employees might receive from having more money in their pocket.

And simply following a chain of reasoning from that fact should tell any simpleton that in the end it actually adversely effects the people who were making more than minimum wage as they will not get a pay increase but have to suffer the increase in the cost of goods.
Click to expand...
Similar reasoning can be used to justify the bringing manufacturing back to the US from China and expelling the illegal migrant workers. If will cause the cost of goods to increase but this would be offset by the increased employment and wages, ultimately leading to a healthier domestic economy.
 
Not news to us. Of course try to explain it to the lefties... Common sense isn't in their wheelhouse...
 
The Democrats are probably delighted that the young and old, women, and minorities are disproportionately screwed by minimum wage increases. Democrats not only get a chance for their votes on the front end by promising them a higher minimum wage, but have a chance to get their votes on the back end by promising them even better replacement jobs.
 
This is a good thing for dems.

Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more. Increase problems for lower end workers. Promise them more.

See how it keeps perpetuating? You have a permanent base that loves you and thinks the other side is the problem.
 
gc70 said:
The Democrats are probably delighted that the young and old, women, and minorities are disproportionately screwed by minimum wage increases. Democrats not only get a chance for their votes on the front end by promising them a higher minimum wage, but have a chance to get their votes on the back end by promising them even better replacement jobs.
Click to expand...

Once everyone is at the public trough, they'll own us all.
 
Gotta have a lot of victims for the lefty political train to keep moving. The more the better.
 
Here's a pretty well balanced article regarding the racist history of the minimum wage laws in the US.

To the pro-minimum wage advocate, this may superficially seem like an anti-racist policy. During this time, with racism still rampant throughout the United States, blacks were only able to enjoy such high levels of employment by accepting lower wages than their white counterparts. These wage-gaps at the time genuinely were the product of racist sentiment.

But this new wage rule, of course, did not eliminate the racism of nineteenth-century employers. Instead, it displaced their racism at the expense of black workers. One white union member at the time celebrated the new rule for removing "the incentive for employing the Negro."2 This early minimum wage rule was explicitly put in place to prevent African-Americans from finding employment, and it was successful in this goal.
full article
https://mises.org/blog/racist-history-minimum-wage-laws
 
fishgutzy said:
Here's a pretty well balanced article regarding the racist history of the minimum wage laws in the US.

To the pro-minimum wage advocate, this may superficially seem like an anti-racist policy. During this time, with racism still rampant throughout the United States, blacks were only able to enjoy such high levels of employment by accepting lower wages than their white counterparts. These wage-gaps at the time genuinely were the product of racist sentiment.

But this new wage rule, of course, did not eliminate the racism of nineteenth-century employers. Instead, it displaced their racism at the expense of black workers. One white union member at the time celebrated the new rule for removing "the incentive for employing the Negro."2 This early minimum wage rule was explicitly put in place to prevent African-Americans from finding employment, and it was successful in this goal.
full article
https://mises.org/blog/racist-history-minimum-wage-laws
Click to expand...
As with the Jim Crow gun laws that the left constantly fights to retain, the MSM will never explain this to the public.
 
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