.Kirsters Baish| The Republican Party has been warning Leftists for years that raising the minimum wage constantly will result in more problems than good. It seems as though the state of California is learning this valuable lesson the hard way. Democratic Governor Jerry Brown signed a law last year, which raises California’s minimum wage to $15 per hour over the next few years. The Left was ecstatic about the minimum wage pay raise… but they will soon learn that it doesn’t come with a hefty cost.xx
>A recent study has found that the large increases in minimum wage will most likely mean the elimination of 400,000 jobs in California. Low-skilled sectors will be hit the hardest.
This is the same group of people who the Left claim to be helping. They are actually the ones being hurt the most by these ridiculous laws.
A report from the Employment Policies Institute explained, “The job loss is not spread evenly. Slightly more than one-half of the job loss is projected to be in two industries: accommodation and food services, and retail trade.”
Two professors of economics ran the study, and it delved into employment trends dating all the way back to 1990. After taking their time and very carefully studying the link between minimum wage hikes and employment, these experts found themselves at the end of a long road. Their conclusion was the opposite of what the Left claimed it would be.
Breitbart summarized the study, explaining “The EPI study found that for every ten percent minimum wage increase the state passed, employment declined two percent.”
The study was very detailed and actually went further than just reporting that the law would harm California more than it would help. It also warned other states so that they could stop themselves from setting the same trap for themselves.
The study explained, “California’s rising minimum wage has depressed employment opportunities in the most heavily-impacted industries. The conclusions should give pause to states or localities interested in emulating California’s wage experiment.”
None of this should come as a big surprise. All you really need to figure this kind of thing out is common sense, but it seems as though the Left is lacking in that department these days. Businesses do not have unlimited money. If they did, we could just make minimum wage $500 an hour and everyone would be happy. It’s simple economics.
The only logical answer to why we can’t keep hiking up minimum wage is that it is simply not sustainable. Pay increases have to come from somewhere. Money doesn’t just fall from the sky. Many times, the place that money is coming from is low-skilled workers with no education who are just starting in a profession. It’s time that the Left start realizing this. Instead of hiring two low-skilled workers and paying them each $7.50 per hour, they could hire one low-skilled worker and pay them $15 per hour. Not as much work would get done, so the company is suffering. The citizens would be suffering as well because there would not be as many jobs to go around.
Every single time minimum wage is increased, there is an adverse effect. If low-skilled employees are making more money, higher skilled employees will demand more money to close the gap. The costs of every single paycheck will increase until a company is bankrupt.
The people of California will be suffering when there are not enough jobs to go around because minimum wage has increased entirely too much. It’s a sad lesson that California is having to learn, but if they wouldn’t listen to Conservatives in the first place, I guess it’s a lesson they have to learn the hard way.