This is a very good analysis of the economics of minimum wage laws. Show it to all your liberal do-gooder acquaintances, not that they’ll actually read it. From Lance Roberts at davidstockmanscontracorner.com:
What’s the big “hub-bub” over raising the minimum wage to $15/hr? After all, the last time the minimum wage was raised was in 2009. The argument for increasing the minimum is to create a “livable wage” for those working at that level.
Given the amount of table pounding that has ensued after the current administration proposed increasing the minimum wage, you would have assumed that a vast majority of American workers were trapped at this horrifically low level of income. Let’s take a look at some numbers.
According to the April 2015, BLS report:
“In 2014, 77.2 million workers age 16 and older in the United States were paid at hourly rates, representing 58.7 percent of all wage and salary workers. Among those paid by the hour, 1.3 million earned exactly the prevailing federal minimum wage of $7.25 per hour. About 1.7 million had wages below the federal minimum.
Together, these 3.0 million workers with wages at or below the federal minimum made up 3.9 percent of all hourly-paid workers.”
Of those 3 million workers, who were at or below the Federal minimum wage, 48.2% of that group were aged 16-24.
Furthermore, the percentage of hourly paid workers earning the prevailing federal minimum wage or less declined from 4.3% in 2013 to 3.9% in 2014 and remains well below the 13.4% in 1979.
Hmm…3 million workers at minimum wage with roughly half aged 16-24. Where would that group of individuals most likely be found?
To continue reading: The Costs & Consequences Of $15/Hour——Not Good!
Reblogged this on Starvin Larry.