Study: Absurd $15 Minimum Wage Will Destroy Thousands of California Jobs
More bad news for people who have the misfortune of living in California and other places run by liberal Democrats: A new study concludes that by the time the minimum wage is phased in all the way to $15 an hour, the burdens on business owners will end up costing the state more than 400,000 jobs. Put out by the Employment Policies Institute, the study was conducted by researchers David Macpherson and William Even. In it, they conclude that unless California Democrats come to their senses quickly, the state is headed towards the kind of economic disaster that could only be wrought by policies rooted in liberal idealism. In this case, the concept of using mandatory (and outlandish) minimum wage hikes as a kind of stopgap replacement for out-and-out welfare.
According to the study’s authors, both of whom are established economists at some of the most respected universities in the nation, the state can expect to lose 5% of jobs in low-paying industries with every 10% increase in the minimum wage.
“Beginning in 2001,” Macpherson and Even write, “California began a practice of increasing its minimum wage at a faster rate than mandated by federal law. In 2001, the California minimum exceeded the federal minimum by $1.10 ($6.25 versus $5.15). The gap between the California and federal minimum fluctuated since 2000 as both the state and federal minimum wages increased.
“As of 2017, California’s $10.50 minimum is among the highest statewide minimum in the country,” the continue. “Moreover, under current law, California’s will increase its minimum wage to $15.00 by 2022 while the federal minimum is scheduled to remain at $7.25. If current laws remain in effect, this will lead to the largest gap between a state and federal minimum wage in the history of the U.S.”
This type of record is like a trophy to California progressives, who see themselves as bold pioneers, staking out new communist ground upon which they can build a new America that sheds itself of the troublesome free market that has given so many people so many opportunities. But it does not take into consideration just how devastating such a gap would be for the state’s economy, to say nothing of the very workers these laws are meant to benefit in the first place.
Alas, you have to wonder if California Democrats even care. If the bottom falls out of the restaurant industry and other sectors that rely on minimum-wage help, it will just give them an excuse to exert more government control over the poor. If these policies create a permanent underclass of citizens in the Golden State, why, so much the better. The more people who depend on government handouts, the better it is for your average “free money” Democrat in the next election.
What a scam.