University of California San Diego economic researchers discovered that the federal minimum wage increase from $5.15 to $7.25 per hour between 2007 and 2009 actually cost the economy 1.4 million jobs, Breitbart News reports.
Even worse, the increase's negative effect landed squarely on the people it was designed to help — low-paid, unskilled workers, who found themselves blocked out of low-paid or internship positions that would give them a shot at gaining experience and achieving higher-paid jobs, the study notes.
Breitbart noted that the Service Employees International Union has protested nationally, seeking an increase in the minimum wage, and Obama favors a 40 percent increase in the federal minimum wage to $10 per hour.
"The new research should give well-intentioned legislators pause before entertaining bills that would ultimately hurt low-skilled workers," Breitbart said.
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Will we, as employers, get a 40% production rise with this 40% raise? I think not.
ReplyDeleteI believe anybody with an ounce of sense has already figured this out. If someone has no experience even $5 per hr. is too much to pay them. If they go to college, they have to PAY. If they are OJT we have to pay them for the privalege of teaching them!!!!!
ReplyDeleteyea right smack in the deepest part of the recession and this is what they blame. pitiful.
ReplyDeletefact is statistically and historically, there is no significant drop in unemployment when the MW is raised.
simply put - this is crap.
this was just a stunt to get more people on welfare and it worked .
ReplyDeleteGet the pitchforks out..everything the politicians touch is failing and not what WE THE PEOPLE WANT....sellouts every dam one of thems both parties
ReplyDelete"simply put - this is crap."
ReplyDeleteWish it were so, but the math says otherwise.