There’s no shortage of states, cities, and other local municipalities raising their minimum wages, with some going as far as implementing an absurd $15 an hour wage.If evidence was a deciding factor when it came to progressive economic policy, we could be thanking them for the various municipalities with $15 minimum wages, because it finally proves them wrong in the minimum wage debate once and for all.
Consider a recent study from the University of Washington which found that raising the minimum wage from $11 to just $13 (the $15 rate doesn’t kick in till later) in Seattle had massive unintended consequences. Employment fell so much that the income paid to low-wage employees sank by roughly $120-million on a yearly basis. That worked out to a loss for each worker of $125 a month – not including the fact that prices also had to rise at businesses coping with the $13 (and soon to be higher) minimum wage.And how did Seattle’s progressive leadership react to the news that a study was about to be published showing their minimum wage hike had the opposite effect? Hire a liberal economist to rush publish a bogus study claiming that no such consequences existed. Unfortunately for the workers suffering as a result of the policy, a bogus study doesn’t change their reality.
With the existing trend in municipalities raising their minimum wages, it’s a surprise that it took so long for some to finally reverse their hikes after suffering the consequences.
According to the New York Daily News, Missouri’s governor will allow a bill to pass that rolls back St. Louis’ minimum wage from $10 back to $7.70, the standard across the state.Gov. Eric Greitens announced that he won’t sign a bill that blocks cities and counties from setting their own minimum wage, enforcing the Missouri standard statewide.
Without the first-year governor’s signature, the law will automatically kick in on Aug. 28.
“Our state needs more private sector paychecks and bigger private sector paychecks,” Greitens said in a statement. “Politicians in St. Louis passed a bill that fails on both counts: it will kill jobs, and despite what you hear from liberals, it will take money out of people’s pockets.”The “Fight for 15” blasted the move as “disgusting,” and noted it came just as Minneapolis passed a $15 minimum wage.
— Fight For 15 (@fightfor15) July 1, 2017
If Seattle is any indication, Minneapolis will soon be wishing they were in the same boat as the rest of their state.