Shocker! Economists Find Raising the Minimum Wage Doesn't Help
A shocking report has come out from the Fed saying that raising the minimum wage is an inefficient way to fight poverty. Shocking, that is, if you are unfamiliar with economics and/or reality.
Essentially, it's shocking to leftists.
David Neumark, visiting scholar at the San Francisco Fed, contends in the paper that raising the minimum wage has only limited benefits in the war against poverty, due in part because relatively few of those falling below the poverty line actually receive the wage.
Many of the benefits from raising the wage, a move already undertaken by multiple governments around the country as well as some big-name companies, tend to go to higher-income families, said Neumark, who also pointed to research that shows raising wages kills jobs through higher costs to employers. Neumark is a professor of economics and director of the Center for Economics and Public Policy at the University of California, Irvine.
"Setting a higher minimum wage seems like a natural way to help lift families out of poverty. However, minimum wages target individual workers with low wages, rather than families with low incomes," he wrote. "Other policies that directly address low family income, such as the earned income tax credit, are more effective at reducing poverty."
We're not ones to say we told you so. Except...
- Walmart Pressured into Raising Minimum Wage. Guess What Happened Next?
- Minimum Wage Hikes Result in McDonalds Closing Doors. We Told You…
- Raise Minimum Wage? How President Obama Ran ‘The Gap’ Out of Business
Yes we are.
So you mean to tell us that arbitrarily picking a "minimum wage" number and forcing small businesses to pay said number, regardless of performance and/or value could lead to financially strained employers and consequently, greater unemployment? It's almost like the leftists who touted and implemented these policies had no access to economic data or verifiable history.
Also, you want $15/hour for flipping burgers?
We told you so.