Consider the City of Seattle, for example.
Last year, when the Mayor and City Council announced a 7-year, phase in of a $15/hour minimum wage, predicting it would would reduce poverty and help workers. In response to what is a proposal, some Seattle businesses have relocated to neighboring cities, costing jobs and curbing economic growth. Others have put expansion plans on hold and subsequently will not be hiring additional workers. Entrepreneurs have postponed their plans to start new businesses.
Don't believe The Motley Monk?
Jody Hall, owner of a small business--Cupcake Royale--supported the $15/hour increase to the City's minimum wage. However, all of that has changed as the proposal is now "keeping me up at night like nothing ever has." Hall has figured out that if the proposal is approved--and it has been, making it the highest minimum wage in the United States--she will have to close 50% of her business locations (Hall has 7) as well as fire 50% of her employees (Hall has 100). That's 3 or 4 businesses and 50 employees gone. Done away with. Finito. All for the sake of raising the minimum wage.
"So what?" the state's political liberals ask. "This is about the poor. It's for greater social justice," they argue. "They deserve a 'living' wage."
Actually, that's not true. What the minimum wage really is, is an indirect tax that consumers bear. Businesses simply pass the cost for the increased minimum wage onto customers.
So, despite the evidence of the negative effects associated with raising the minimum wage, political liberals in the State of Washington have introduced an initiative for the November ballot. If approved by votes, all large employers in the State will be required to begin paying their employees $15 in 2015. The initiative does give small business owners a break. They will have 3 years to implement the new minimum wage.
If implemented, can anyone guess about what's going to happen to the economy of the State of Washington?
It's all so predictable and the evidence just keeps rolling in. Yet, it all means absolutely nothing to political liberals. Or, should they be called "leftist political ideologues"?
Let the discussion begin...
To read the Washington Policy Center report, click on the following link:
"Seattle's $15 Minimum Wage Not in Effect, But Already Killing Jobs."