A recent study in Seattle shows how low-wage workers are actually hurt by a guaranteed minimum wage of $15 per hour.
The study showed that for every 1 percent increase in hourly wage, low-wage workers saw a 3 percent reduction in the number of hours worked. The net effect was a decrease in wages as the free market adjusted to the political mandate.
Many folks will argue with the facts in this comprehensive study, claiming they know better than the simple facts presented in a “very credible study that is sufficiently compelling in its design and statistical power that it can change minds.”
Social engineering always attempts to bring emotion into the decision-making process to attempt to provide equity for the all citizens. But certain politicians ignore the facts. Sure, I’m compassionate towards the fact that living is tougher with lower wages. But by taking personal accountability for one’s self, you can improve your own circumstances with perseverance. It’s been the strong history of this country.
I doubt my Czech grandmother, who at the age of 17 legally immigrated to this country, had any guarantees of a better life other than the opportunity and freedom to make a “go of it” and improve herself and her standard of living.
The same effects on lower-wage earners will be felt here in New York with recent similar initiatives. The initiatives make the politicians feel better, with the real intention of soliciting votes.
Take bold steps to invest in American jobs, incentivize businesses to create future opportunities with lower taxes, and build and repair infrastructure. Then, step aside and watch the miracle of American innovation that will benefit all of its people.