Wednesday, August 26, 2015

The true cost of minimum wage

So who gains from raising the minimum wage? Politicians and labor unions. Minimum wage increases tip the balance in favor of higher-skilled—and higher-wage—unionized workers by raising the floor from which they negotiate compensation. Politicians, on the other hand, can act like they did something for the little guy while receiving union support—which is no small matter. In 2012 alone, government union SEIU Local 668 spent more than $200,000 of its members’ dues on political activity and lobbying. . .

Last October, the Wall Street Journal editorialized  about  the “minimum wage” campaign:
Amid a historically slow economic recovery, 1970s labor-participation rates and stagnant middle-class incomes, we understand that people are frustrated. Harder to understand is how so many of our media brethren have been persuaded that suddenly it’s the job of America’s burger joints to provide everyone with good pay and benefits. The result of their agitation will be more jobs for machines and fewer for the least skilled workers.

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