• June 13, 2024

Are low income workers the biggest losers due to $15 minimum wage hike? [video]

 Are low income workers the biggest losers due to $15 minimum wage hike? [video]

Low income workers are the first to go as businesses cut staff due to $15 minimum wage increases – photo credit – YouTube

Remember the endless angry rallies and demonstrations of 2016 by liberals who backed dramatic minimum increases up to $15 an hour for entry level jobs? Well, it appears the grim reaper of reality has set in according to Fox News and many workers are being shown the door or worse yet may never get that entry level or summer job break.

In more than a dozen cities and states across America, minimum wage increases topping off at $15,20 have taken effect on July 1, and businesses are responding with reduced hiring. For workers in Seattle, which led the nation in demonstrations for boosted minimum wages, the protests are backfiring.

Instead of using the entry level jobs are a ladder toward a better job or a better career, liberals loudly protested that businesses should give the unskilled workers what they need, and to heck with the economic consequences. So, as the liberals ran off into the socialist sunset looking for the next paid protest gig, the workers of Seattle and other cities that once had entry jobs are sitting on the sidelines with nothing.

Gary L. Toebben, President of the Los Angeles Chamber of Commerce, stressed that these liberal politicians did not think this through using even the simplest basic economic principles. He stressed, “We know employers have three options: raise prices, reduce number of employees or cut employee hours,” reported Fox News.

In fact, Los Angeles is one of the California cities that is feeling the minimum wage impact. The city raised its minimum wage from $10.50 an hour to $12 with a goal to top off at $15 by the year 2020. Where else but on the left coast can economic reality be totally separated from reality. For instance, In Pasadena, according to Local Chamber of Commerce President Paul Little, local businesses are informing him that they are letting people go. Little explained, “We’ve been hearing from restaurant and retail members that they can’t sustain. Folks at the low end are letting people go,” according to Fox News.

Based upon the Economic Policy Institute’s minimum wage tracker, the following cities and states realized a minimum wage increase July 1:

• California: Eight cities increased above the state minimum of $10.50.
• Washington, D.C.: Increased by a dollar to $12.50.
• Oregon: Increased to $10.25 statewide. Portland raised the wage to $11.25.
• Illinois: Chicago increased to $11. Cook County increased to $12.
• Maryland: Increased to $9.25 statewide, with the exception of Montgomery County at $11.50.
• Arizona: Flagstaff increased to $10.50.

A study by economists at the University of Washington found that the average low-wage worker in the city lost $125 a month in income due to the hike in the minimum wage, because it was pushing the market away from lower skilled workers in general. This was a predicted outcome by many who opposed substantially raising the minimum wage to $15.

In fact, Pymnts reported that they study concluded, “Employers started replacing low skill, low cost workers with higher skill workers in higher paying jobs. The number of workers making over $19 an hour increased abruptly, the study found, while the number making less than $19 an hour dropped sharply.”

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