Sometimes you have to wonder how many liberals advocating for a higher minimum wage know full well that it’ll cost jobs. One can’t imagine the unions pushing for higher wages care, as they’re just looking to bring in more dues. But you’d think the incentives would be different for politicians. While they want to claim the moral high ground by touting they raised wages, they certainly don’t want to send jobs out of their city or state.
Oregon has been one of many states to recently raise their minimum wage. Three months ago, it signed into law a plan to raise the minimum wage based on a city’s population size (for example, the minimum wage would be $12.50 in rural Oregon, but $14.50 in Portland) by 2022.
Turns out, it made a bit of a mistake.
As Townhall reports (quoting FOX News): Last week, state analysts concluded in a prepared forecast the high wage will “result in approximately 40,000 fewer jobs in 2025 than would have been the case absent the legislation.”
Orchard owner John Zielinski said his family business will take a big hit. “When those pears and apples are sold on the market, they’re not going to give us any more money because we’re from Oregon and have a higher pay rate,” said Zielinski of E.Z. Orchards.Rural counties threatened to file a lawsuit against the state, calling the minimum wage a maximum mess and an unfunded mandate. Oregon’s constitution allows local governments to opt out of state programs that raise costs significantly and are not funded by the legislature.
Hearing the outcry, Democratic leaders quickly admitted they may have messed up. They promised a fix-it bill next year allowing for a lower training wages for young workers and some new hires.Sure sounds like an admission that raising the minimum wage kills jobs. The state already had an above-average minimum wage of $9.25 since 2015, but for minimum wage advocates, too much is never enough.
[Note: This post was authored by Matt Palumbo. Follow him on Twitter @MattPalumbo12]