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.
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2 comments:
It also often leaves the in even worse economic shape because they make just enough to put them over the limit for assistance, but not enough to live. what we need is more GOOD jobs and more opportunities for people with a good work ethic...something that seems undervalued these days.
No other group has been hit harder by the failed Democrat policies then they.
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