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The Bitter Lesson From Seattle's Minimum Wage Hike
IBD ^ | August 9, 2016 | Terry Jones

Posted on 08/10/2016 1:12:03 PM PDT by QT3.14

aising the minimum wage is one of those wonderful-sounding ideas that, whenever tried, unfortunately never quite works the way it was promised. To its credit, the Washington Post has noticed.

The Post recently highlighted a new study from a group of economists who were commissioned by the city of Seattle to look at that city's minimum wage hike from $9.96 an hour to $11.14 an hour. What they found was enlightening.

To begin with, the economists said, some of the workers weren't helped at all, since their pay would have likely gone up anyway with experience and tenure on the job.

But the city didn't bargain for what happened to other workers it had sought to help: "Although workers were earning more, fewer of them had a job than would have without an increase," the Post said. "Those who did work had fewer hours than they would have without the wage hike."

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Culture/Society; Government; US: Washington
KEYWORDS: bluezones; minimumwage; seattle
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1 posted on 08/10/2016 1:12:03 PM PDT by QT3.14
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To: QT3.14

Every argument for an increase in minimum wage can be defeated by this simple question; if $15 an hour is a good idea, why not increase the minimum wage to $30/hour? If they agree just keep raising it until they say that it is too much. At that point you have won the argument because they will agree that raising the minimum wage negatively influences jobs.


2 posted on 08/10/2016 1:18:14 PM PDT by Blood of Tyrants (Socialism is always just one or a thousand or a million more murders away from utopia.)
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To: QT3.14

They made it illegal for someone to work if they couldn’t produce more than $11/hr value.
So, people insufficiently productive lost jobs.
Go figure.


3 posted on 08/10/2016 1:19:17 PM PDT by ctdonath2 ("If anyone will not listen to your words, shake the dust from your feet and leave them." - Jesus)
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To: QT3.14
There wasn't an honest economist on the planet who could not have told Seattle that this is exactly what they should expect. I hate to say I told you so, but I told you so.
4 posted on 08/10/2016 1:20:03 PM PDT by econjack
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To: QT3.14

The minimum wage is $0, and always will be................


5 posted on 08/10/2016 1:20:44 PM PDT by Red Badger (Make America AMERICA again!.........................)
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To: QT3.14

The function of increasing the minimum wage is to (hopefully) spur price inflation, increasing “growth” and monetizing the debt.

That is what it is all about.


6 posted on 08/10/2016 1:20:49 PM PDT by Mr. Douglas (Today is your life. What are you going to do with it?)
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To: QT3.14

When the 3rd party of government tells a business owner that he must pay $1 extra to Sam, this is $1 the owner cannot spend and give to Bill, Mary, Sally, George, Harry, Susie....

When the 3rd party of government tells a business owner that he must increase entry level pay by $1, this is $1 the owner cannot invest in mid-level pay, senior-level pay, raw materials, construction, retirement, health care, infrastructure, advertising, supplies....


7 posted on 08/10/2016 1:21:22 PM PDT by mbarker12474
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To: Blood of Tyrants

At that point you have won the argument because they will agree that raising the minimum wage negatively influences jobs.”

If by they you mean the libs, there will be a snow blizzard of epic proportions in hell before they ever acknowledge that the policy to increase minimum wage was wrong or resulted in anything adverse.


8 posted on 08/10/2016 1:23:12 PM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: QT3.14

On a somewhat related note, I would like to tell you MY story. In May, Obama, through Executive Order, or a Department of Labor regulation, raised the threshold for overtime pay for salaried employees from $23,600 to $47,500. I was due to be promoted in June. I am a wage employee. I was going to be salaried. Get benefits, a car, potentially bonuses. Come Obama’s pronouncement, and my promotion has been put on hold. My company is nationwide, and they have to digest the ramifications of this increase. How much will it cost? How do they track the hours? Am I worth it? (from their perspective? The promotion appears to be a dead issue. I was in line for a 20% raise. Nice.


9 posted on 08/10/2016 1:23:55 PM PDT by fhayek
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To: mbarker12474

And, that business owner cannot reinvest that dollar in the business, to make the business grow, which would create more jobs. Lots of issues, as you note, are tied in with raising the minimum wage.


10 posted on 08/10/2016 1:24:44 PM PDT by Dilbert San Diego
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To: QT3.14
Yes, Obama and Democrats are aware of this, and no, they do not develop policies that address the reality of minimum wage hikes and their measurable failure; instead, they focus on 'feel good, sound good' policies that appease the masses, harm businesses, and displace workers.

It doesn't actually have to help anybody, it only has to fool them into voting Democrat.

11 posted on 08/10/2016 1:25:49 PM PDT by Billthedrill
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To: QT3.14

Yes libards... it’s called market equilibrium. Its what happens in reality versus the perverted, delusional, skittle-crapping unicorn universe created in the polluted minds of you clueless nimrods.


12 posted on 08/10/2016 1:26:07 PM PDT by Common Sense 101
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To: QT3.14; All

The question is not whether raising the minimum wage helped workers / employers or not.

The only thing that socialist politicans are concerned with is did supporting the raise help them to win election? After getting elected they then stay in office by promising to pocket ..um.. spread the wealth by raising taxes.


13 posted on 08/10/2016 1:28:47 PM PDT by Amendment10
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To: QT3.14
Damn real economic results! We had a "Dream"!!!
14 posted on 08/10/2016 1:34:45 PM PDT by ExSES (the "bottom-line")
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To: ctdonath2

That is probably the best and most succinct description of the law of economics at work here.


15 posted on 08/10/2016 1:35:42 PM PDT by katana
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To: fhayek

There are 2 sides to that issue; should a company work an employee earning $23,600 80 hours per week?

I’m no socialist or communist, but we have to accept that people who feel exploited (sometimes with justification) vote, and they aren’t voting for our candidates. When companies lose lawsuits because they force employees to do work before/after their shifts (OFF the clock), those companies deserve to lose - it is wrong, and robbing those workers of wages.


16 posted on 08/10/2016 1:36:26 PM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: ExSES

President Trump will eliminate the minimum wage. It will happen after he’s reelected. Cowards that enjoy getting laid will talk about lost compassion.


17 posted on 08/10/2016 1:37:46 PM PDT by DIRTYSECRET (urope. Why do they put up with this.)
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To: QT3.14; Jim Robinson; crz; Eurotwit; Timpanagos1; goldstategop; DonaldC; impimp; Buckeye McFrog; ...
Here’s how Trump’s Economic and Job Recovery List should read:

Bringing Back Free Market Competitiveness, Opportunity, and Growing Economy

FIRST ON THE LIST: 1. Unconstitutional job/business-killing federal minimum wage.

2. High taxes.

3. Unconstitutional suffocating dead-end regulations.

4. Unconstitutional federal protection of unions.

Trump talks about regulations and taxes, never talks about minimum wage or or union protection. BOTH need to GO.

18 posted on 08/10/2016 1:38:36 PM PDT by Jim W N
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To: QT3.14

Supply and demand. It’s the law.


19 posted on 08/10/2016 1:39:33 PM PDT by Raycpa
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To: ctdonath2

Color me gobsmacked on 2 counts:

1 - The obvious, as you stated so well, as regards insufficiently productive...

2 - And, that this was published at all rather than being hidden in dark corner.


20 posted on 08/10/2016 1:41:03 PM PDT by T-Bird45 (It feels like the seventies, and it shouldn't.)
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