From the rightwing Washington Post...
https://www.washingtonpost.com/blog...ductive-fixation-on-raising-the-minimum-wage/
If that pattern continues in major cities that have adopted higher minimum wages, the impact on employment and on the poor, specifically, may be profound. So why do Democrats keep proposing something so counterproductive?
One explanation is economic illiteracy. “Whether it’s a small local diner or a large retailer like Wal-Mart, restaurateurs and retailers operate in extremely competitive, ‘cutthroat’ industries with razor-thin margins of 1-6%, leaving very little, if any, room for absorbing labor cost increases of 50-100% that many businesses who hire minimum wage workers are now facing,” says Perry. “The economic reality is that restaurants and retailers don’t have a ‘magic pile of money sitting around’ that voters and politicians assume must exist when they burden those businesses with significant, government-mandated wage hikes.”
Another explanation is that Democrats’ political allies, specifically Big Labor, benefit from higher minimum wage laws. When the minimum wage goes up, they are better positioned to negotiate higher wages on non-minimum-wage jobs. If employers relent without a corresponding increase in productivity, they, too, will have to hire fewer people.
https://www.washingtonpost.com/blog...ductive-fixation-on-raising-the-minimum-wage/
If that pattern continues in major cities that have adopted higher minimum wages, the impact on employment and on the poor, specifically, may be profound. So why do Democrats keep proposing something so counterproductive?
One explanation is economic illiteracy. “Whether it’s a small local diner or a large retailer like Wal-Mart, restaurateurs and retailers operate in extremely competitive, ‘cutthroat’ industries with razor-thin margins of 1-6%, leaving very little, if any, room for absorbing labor cost increases of 50-100% that many businesses who hire minimum wage workers are now facing,” says Perry. “The economic reality is that restaurants and retailers don’t have a ‘magic pile of money sitting around’ that voters and politicians assume must exist when they burden those businesses with significant, government-mandated wage hikes.”
Another explanation is that Democrats’ political allies, specifically Big Labor, benefit from higher minimum wage laws. When the minimum wage goes up, they are better positioned to negotiate higher wages on non-minimum-wage jobs. If employers relent without a corresponding increase in productivity, they, too, will have to hire fewer people.
