UC Study: Minimum Wage Hike Of 2007-09 Cost 1.4M Jobs
” Raising the minimum wage, a stated goal of the Obama administration, likely would cost jobs and hurt low-income workers.
University of California San Diego economic researchers discovered that the federal minimum wage increase from $5.15 to $7.25 per hour between 2007 and 2009 actually cost the economy 1.4 million jobs, Breitbart News reports. “
” Even worse, the increase’s negative effect landed squarely on the people it was designed to help — low-paid, unskilled workers, who found themselves blocked out of low-paid or internship positions that would give them a shot at gaining experience and achieving higher-paid jobs, the study notes.
” We find that binding minimum wage increases significantly reduced the likelihood that low-skilled workers rose to what we characterize as lower middle class earnings. This curtailment of transitions into lower middle class earnings began to emerge roughly one year following initial declines in low wage employment. Reductions in upward mobility thus appear to follow reductions in access to opportunities for accumulating work experience,” the report states. “
” While the wage distribution of low-skilled workers shifts as intended, the estimated effects on employment, income, and income growth are negative. “
For every government mandate on businesses , industry and technology will create a way to avoid them . If increasing the mandatory minimum wage by two dollars cost a million and a half jobs just imagine the losses from a doubling of the present state-mandated wage for unskilled workers , and machines don’t need healthcare .
Read more at NewsMax
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