Study: Higher Minimum Wage Leads to Lower Employment

A new study from the National Bureau of Economic Research conclusively shows that minimum wage hikes lead to scarcer employment for low-skilled workers. Titled, “The Minimum Wage and the Great Recession,” the study looked at three federal minimum wage increases rolled out between 2007 and 2009. The results probably won’t make a difference to any liberal who thinks these wage increases are a good idea, but they might make rational thinkers reconsider their position.

Between the dates addressed by the study, the federal minimum wage rose from a starting point of $5.15 an hour to an eventual high of $7.25 an hour. A look at how this hike affected individuals and families on the ground, though, proves that it harmed the very people it was trying to help. During the same time frame, the “employment-to-population ratio declined by 4 percentage points among adults aged 25 to 54 and by 8 percentage points among those aged 15 to 24.” Cities where the minimum wage was already higher than the federal minimum did not see the same employment reduction.

The study concluded that “binding minimum wage increases had significant, negative effects on the employment and income growth of targeted workers.”

Conservatives Aren’t Meanies

Opposition to minimum wage hikes is one of those areas where liberals love to paint conservatives as greedy, heartless soldiers of big business. That’s their spin, designed to rile up the low-information sect. The truth is that there are very good reasons to oppose minimum wage increases most of the time, and this study points out just one of them. Other studies have found that minimum wage hikes do nothing to reduce poverty, make it more difficult for new workers to gain experience, and represent unwanted government intrusion into the private sector.

Liberals want you to believe that the American dream is just a myth. And you would have to buy into that to support minimum wage increases, because it goes against everything the free market is about. You don’t have to start out wealthy to get there someday. The system is set up like a ladder. You start at the bottom. $5 an hour, $10 an hour, whatever the case may be. You start there because that’s your value to the marketplace. You have no skills. You have no education. That doesn’t mean you’re a bad person, it just means you aren’t worth a great deal to employers.

But here’s the secret: you can increase your value! Not by marching up and down the sidewalk with a sign in your hand, but by learning new skills. By going to school. By doing more work than you’re being paid to do. This is how you start climbing that ladder. It’s how you go from making the federal minimum wage to $100,000 a year or more. It doesn’t happen through luck or politics or affirmative action; it happens as a byproduct of making yourself more valuable to the marketplace.

If liberals would spend a little more time preaching that message and a little less time raging against the machine, maybe they would finally help their constituents. But then, if they preached that message, they wouldn’t be liberals.

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  1. They needed a study for that? All they had to do is confer with anyone who has ever had his or her own business.

    • So its OK to underpay as long as it keeps you in bussiness?

      • In a free enterprise economy, if you know that you deserve a better pay, you negotiate your salary or find a better job. In corporate/government economy where big corporations bribe (in political language they call it lobby) the government to kill small and medium size businesses by endless regulations, including minimum wage requirements, nobody but these who “are more equal than others” have a decent standard of living.

      • First of all, it you own a small business and you cannot make a living, you close it and no one who works for you has a job. There are people who could not find another job and would have to be on the dole with the government and no job. That does not make most people feel a sense of accomplishment. These day and in the old days, many people who own the business go without pay so that they can pay their workers, which comes first. Kendra, I do not thinkthat you have ever tried to have your own business. Those of us who do sometimes go for years without being able to pay yourself. It used to take an average of five years to get well established. You do not seemto realize that our government is keeping people poor and not paid by giving them stuff so that they will never pull themselves up in this world. I believe that people with any pride in themselves would rather work for a little less and have a job than to be dependent on the government. Maybe you would rather be dependent. MY grandparents and parents came to this country and worked hard for many, many years to provide for their families. That started their own small businesses. My grandfather had no employees, my father had just a couple, my husband worked with one employee for many years before he could add more and provide several people with jobs that they were glad to get. I don’t suppose that you understand any of this or that you want to.

        • People who don’t understand have never had to meet a payroll. They think that because you are in business you must have deep pockets. People who don’t understand will never understand and all the explaining in the world is just a waste of time.

        • Most people do not know what “Overhead” is, the rent on the store or unit, Insurance, Workman’s Comp., Utilities, all must be paid along with salaries if you hire anyone, thenyou need to pay Soc. security for them and hire an accountant and it goes on and on and if your lucky you can pay your own bills. My grandparents came here from Denmark before Ellis Island, and my Bestepa had a Bakery, he and my Uncle ran it, my aunt ran the counter and they lived upstairs over the bakery. My other Grandfather was an Atty. and went to fight in the Spanish Amer. war. and the Border dispute, during WWI he taught at the Army War college and later in JAG, he ret. as a Col. which he had to work up to, oh yes he was a Capt. going in as if you are a degree holder depending on background, you usually start. as a Capt. Not educated, well you get to start as a pvt. and if you show potential as an enlisted man you may get a commission if you go to OTC and make it. Nothing is due you, you need to work for it.

      • As long as you are paid minimum wage you are not underpaid. It is not your employers job to make sure you make enough to pay you bills. I don’t know about you but I’ve never seen a burger flipper worth 15.00 an hour. They raise the minimum wage that means higher prices, less hours, and less employees. So exactly who wins.

        • No burger flipper is worth $15.00/hr. These fast food places don’t even pay their managers that kind of a wage. Plus, they can replace the workers with automated machines. It’s done all the time. Look at the car manufacturers. What used to be done by hand is now done by robots.

      • If I hire a person to work for me and he has no experiance, you would demand that I pay him $10.00 per hr. if that’s the fixed rate as per the Fed.? How much should I charge per hour to teach that person and still have to do my job too? At one time I had 24 people working. Most of them were’nt
        worth $5.25 an hr. but I paid that and trained them too and all I got for that was a headache and empty pockets. Most people couldn’t afford to hire us because after TAXES, FUEL, INSURANCE,
        PAYROLL, VEHICLE MAINT.& TOOLS, S. SECURITY, UNEMPLOYENT, ETC, ETC, AND YADA,YADA,YADA, you’re cut to the bone and about to go crazy wondering WHY YOU DO THIS!

      • The secret is, pay out all of your profit by increasing minimum wage, borrow money to stay in business, go broke, close the business and all of you employees are on unemployment. Pelosi says unemployment is good for the economy. Remember, as long as you are in business you are employing people, that’s how it works. Underpay is a subjective
        activity, everybody is underpaid, just ask anybody.

      • If you are working for minimum wage, it means one of two things. 1.) You have been working for many years yet you have no marketable skills to offer a company therefore, the company would have to invest in training you. No matter what you think, training an employee is an expense on the company. 2.) You are looking for your first job and you have no marketable skills to offer a company therefore, the company would have to invest in training you, which is an expense to the company.

        When you raise minimum wage, everything else goes up with it. Just like when gas goes up, everything that travels by air, ground, and boat goes up because the employers always pass the costs onto the consumer. It’s not a matter of being underpaid. It’s a matter of how valuable you are to the person or company who is hiring you. Prove your worth and you may get more money. Maybe not in that job, but there are others out there.

  2. NBER is a private company paid for and bought by bussiness. Denying people a decent standard of living is part of the slavery adgenda all too prevalent in corporate/government philosophy today. Keeping people poor and ignorant will only work for so long. Good luck with that, things are about to change.

    • You have no idea about what you are talking about. People aren’t “denied” a decent standard of living because of some agenda of a business. They are paid what they are worth. Businesses don’t exist to benefit employees. Businesses exist to supply a product and service and be successful. The largest single expense in any business is employee compensation. If a business is to survive, it must make a profit. Investors and/or owners are entitled to a return on their investment. Small business owners have considerable “sweat” equity invested in their business. Small business owners often sacrifice their own compensation to be able to pay the bills including the compensation of employees. Those employees can move on if that business fails, but the owners and/or investors are stuck with the losses. The employees move on and have no risk except the loss of their job. Your attitude about economics shows your political philosophy. You think that it is someone else’s job to make you successful for just existing. Go look in the mirror. The person you see there has the primary responsibility for your success and no one else.

    • Chester,

      That’s a near sighted opinion on your part. Entry level positions are never meant to raise a family or support the employee in a carefree life style. What a minimum wage job does is provide an entry into the job market where the employee can acquire greater skill to become worthy of greater pay. A minimum wage increase simply starts a chain reaction uptick in all wages regardless if the employee is worth more or not. An apprentice plumber, painter etc. making say $10.00+ is now worth the equivalent wage increase and so on up the line with it all ending with increased inflation so that the increased wage is soon back where it was in value. You might ask yourself how it is that wages must continually be adjusted upward. Before government got in the picture this country got along just fine without artificial wage increases without corresponding work value. The only real benefit goes to the government which now grabs more in SS & Medicare premiums. When I was in HS, I worked as stock clerk in a grocery store for $.75 and hr. and with that I bought my clothes and paid for my social activities, but no way did I expect to rent an Apt, buy a car or raise a family with that income. Since then nothing has been changed by the multiple wage increases other than more zeros have been added. BTW, who KEEPS people ignorant?

    • Try starting a company by denying people a “decent standard” of living and you will be the only employee. A decent standard of living means different things to different people. For some, it means a big house, two cars, a swimming pool, boat, skidoo, etc. etc. To others it may mean, adequate housing ( a roof over their heads) clothing, a used car and sufficient food on the table, many would settle for the latter, I know I did until I realized that I needed to offer my employer more than I was offering to better my position with the company. I’ve been there, I never complained, I improved my skills and better compensation followed. I was making 144.00 per month and paying
      65.00 a month in rent for 2 rooms and share the bath. People keep themselves poor and ignorant, the opportunity for a better life is there for the taking, but I will admit, you have to work at it. You really have no idea what you’re talking about.

      • I think you and I both adhere to a free market economy as described by Adam Smith whether or not you know who he was. My only objection to the article was the false logic used to prove the authors point. I believe in hiring good people any paying them well but I do not believe that the government should tell me what to pay them. I always paid far more than minimum wage but I expected and received more than minimum performance.

  3. This article states Pure fact. People like Seattle WA. City Councel member Shama Sawant should read and take to heart. A person does not start at the top of the corporate ladder you start at the bottom and work up by showing people that you want to work and earn the promotions and salary increases.!!

    • Dream on. This only works for a miniscule percentage, the rest will be held in economic slavery.

      • It is obvious that you are clueless about how our economic system works. You obviously are not a business owner. You think that businesses exist to dole out money to employees. The fact is that minimum wage is an entry level compensation amount. An employee who remains at minimum wage after six months is demonstrating that they are not supplying value to the employer. If the person is progressing wage hikes will follow. If they don’t, the person can leave and use the experience to get a better job.

        I have been an employer and I have never paid minimum wage because my employees from the start were more highly trained and therefore could expect the higher compensation they received. To do nothing to make yourself more valuable to your employer and then complain that you aren’t making a “liveable” is a losers lament.

        • These young people don’t know how to do anything, except complain.

          • True, and the jobs that HS and college kids once did are being held by immigrants. I went to work at 14 in a neighborhood 5 and 10, worked Friday’s after school, through the holidays and on summer vacation. I graduated from HS at 16 and went to a well known Univ. Nursing school, I got married and raised my family. My kids worked at fast food while in school, all worked their way up. Entry level jobs are just that, entry level, to give experience in the business world. With all these illegals taking jobs at a lower pay, our kids are not getting jobs and racial discrimination is in reverse these days, when it comes to hiring..

          • Your welcome to chime in on the Costco verse Wal-Mart Comparison I mentioned above.

          • Costco is not my fav store,as I can not afford most of what they sell,and don’t need large quanities for all items. I’m not fond of Wal Mart either,stores are way too big and wear you out shopping from one end to the other,and their prices are’nt worth the 75 miles I have to drive to shop. My small town has basicly no shopping,so I shop very seldom and watch prices closely.

          • mthighpockets. I understand what your say but I wonder if you had every heard of the “co-op” Shopping. You get 2 or three other people and list the items you need. then go to Costco and purchase the Large Quantities and Split it between the other people. The Per Item cost is lower because your buying in bulk but because your splitting between others the items you buy would always be lower then what you could pay at a grocery store. When I was first getting started I did these with 4 neighbors and we would buy things like Bulk bathroom tissue, Large bags of Sugar and Rice and coffee and other staples. Had one of them tell me about Freezing Loafs of Bread because it last longer. Just a suggestion.. It is a way to stretch your dollar Farther.

        • Here is the answer to big lie that people like chester do not understand. The only entity to benefit from the increase in wages if they raise the minimum wage, is GOVERNMENT. the price of products and services will increase, and the dollar will not go as far, for everyone except GOVERNMENT. The taxes on minimum wage workers will increase. More taxes mean less dollars in your pocket, even though you make more money. People who currently make what minimum wage will become, will not see an increase in their wage, unless they are in a union whose wages are tied to the minimum wage. Even then, with the prices of goods increasing, they will see a loss in buying power. Any raise in the minimum wage, is really a pay cut for everyone, which means the poor will be getting the short end of the stick. (Thank you for that Liberals) Sarc

        • Sorry James a Have had my own business since I got out of the Service.. And would not more pay someone 7.25 an hour then I would Listen to a tea Party Hack website.

        • Ok James with your theory stated above Explain COSTCO.. They pay all their workers anywhere from 12 to 18 dollars an hour.. They give their workers Paid Vacation, Sick Time, Healthcare and Profit sharing and 401k? And Yet their prices are lower then Walmart/Sam’s Club that does not of those things. They also have a vastly lower turn over Rate and worker that give Great customer service to their Customers. Sorry but I think will run my business like Costco and Not Walmart.. Oh.. and since I started this just read where Mcdonalds is raising their starting wage to 10.00 an hour. So maybe the know something we don’t know.. (well I know it but did not want to point that out to you)

      • It’s a sad reality: WE aren’t all created equal, at least we don’t all have
        equal abilities. We won’t all become brain surgeons so we have to settle for something less on the scale of achievement. There is a hierarchy in the scheme of things and we should and must accept this simple fact. I cannot make millions as a star athlete. Star athletes make the big bucks, then come the real good players, they make less, and then come the journeymen athletes, they make minimum wage as
        compared to the rest. We may not like the system of hierarchy and ability or that some are better at some things than others but that’s the way it is. I’m pretty sure there are some people who think you make too much money, no matter how much or how little you make. A good system would be that everyone gets the same amount for whatever it is they do, star athletes, brain surgeons, or burger flippers, seems to me that would be fair, don’t you think? Wait! I think it’s been tried.

        • Its ashame every one making minimum Wage in the Country can’t afford to go on Strike for a month or so. Then maybe a lot of people will wonder why they are not getting all the services they are use to. Why there are only a couple of Cash Registers open at Walmart,, or why the Shelves at their local store are empty because no one has stocked them. Or there is no one to take their order at when they stop into a fast food place for quick Lunch. OR why is it there grass is not getting Cut. If companies like McDonalds and Walmart were not pulling record profits while not paying their people enough to live on then that’s the problem. Because boys and girls what happens is those people apply for the Snap Program, for welfare and Medicare.. so here is the question. Would you rather The tax payer pay for that or the Companies that decide they can give their CEO multimillion dollar Raises while crapping all over the employees that make those profits possible. Its a simple choice the companies pay or you the Tax payer does.

          • ……Fuzzy thinking ………..

          • Pretty clear thinking actually unless you have liver mush for brains.

          • UNIONS are at the bottom of this ……They Demand more
            and deliver less …………….

          • Really.. how about this…

            Did you know that labor unions made the following 36 things possible?

            Weekends without work

            All breaks at work, including your lunch breaks

            Paid vacation

            Family & Medical Leave Act (FMLA)

            Sick leave

            Social Security

            Minimum wage

            Civil Rights Act/Title VII – prohibits employer discrimination

            8-hour work day

            Overtime pay

            Child labor laws

            Occupational Safety & Health Act (OSHA)

            40-hour work week

            Workers’ compensation (workers’ comp)

            Unemployment insurance


            Workplace safety standards and regulations

            Employer health care insurance

            Collective bargaining rights for employees

            Wrongful termination laws

            Age Discrimination in Employment Act of 1967 (ADEA)

            Whistleblower protection laws

            Employee Polygraph Protection Act (EPPA) – prohibits employers from using a lie detector test on an employee

            Compensation increases and evaluations (i.e. raises)

            Sexual harassment laws

            Americans With Disabilities Act (ADA)

            Holiday pay

            Employer dental, life, and vision insurance

            Privacy rights

            Pregnancy and parental leave

            Military leave

            The right to strike

            Public education for children

            Equal Pay Acts of 1963 & 2011 – requires employers pay men and women equally for the same amount of work

            Laws ending sweatshops in the United States
            All of those were fought for by Unions. So maybe you should just say thank you for what they won for you.

          • The unions have done a good job as far as benefits, but now they are abusing the system and are just as corrupt as any organization with too much power. They can get away with highly criminal and violent acts against businesses By Law, as long as the crimes are committed to favor union objectives. This according to the screwy federal Hobbs Act.
            S.2535 and H.R. 2021 would make union officials liable for such crimes and punishable as any gangster or thug would be. In 2015 call your senators and representative to pass ’em!

          • Your point? I am a service connected disabled veteran, I have worked in union shops, I saw no net benefit because of that. I actually saw pay and benefits CUT, when the union came into one of the shops I worked in. The unions did some good things, and bad things over the years, and like most entities, their days are now numbered. I will not cry when they are extinct. If you are a member of a union, you do not work for the company, you work for the union. See Collective Bargaining, it is a communist tactic.

          • HistoricalConstitutionalRoger


          • No doubt the unions did a lot of good in years gone by. However you cannot enjoy only the benefits without listing some of the negatives. Unions have become the very thing they fought for years. They have become corporate monsters, using membership dollars for promoting political parties and candidates, not always approved by all members.This by no means is a complete list of the negatives, I don’t have that much time. It’s the union way or no way, members be damned.

          • HistoricalConstitutionalRoger

            YEp!! Look at all the good they did for the auto industry. Talk about Greed!!! They slothed them right out of business, along with their care-less about quality. My uncle even said that in 1958 and LEFT the auto industry> “GM care, and quality sucks”! I told a guy in 1975 With his son at his side, whom he brought back to me, ” You will see your rewards in the days to come, for all the sloth and division Vrs your Big wages now!!” Reasonable, Honest, Logical Unions could be a help. but, look who they supported in the last two elections! That should tell you Something about how they feel about this country!

          • Stupid thinking! If they went on strike for even a few days, the bosses would hire other workers. They would be out of a job. Also, you keep thinking of big companies. McDonalds are franchised. That means each one is really a small business tied to a big compay, but what each franchise makes is a small business that has to pay money to the Big business.

            Also, most small businesses are on their own. Since Obama has come into power, there is so much paper work and rules and regulations, many, many small businesses have had to close. If the minimum wage goes way up, many, many more small businesses will close leaqving a great many people without jobs at all.

            Obama is trying to get everyone dependent on the government and you without business knowledge and without the wearwithall to start your own business do not understand and do not want to understand.

          • Point I was making just when over your head there Did it not?

          • It would be impossible for any of your thinking to go over my head. I understood everything you said and disagree and told you why. You are the one who does not understand. Probably incapable of it. Matter closed!

          • Since you seem to Concentrate on the first part and ignore the rest… YOUR PAYING FOR THEM Not getting paid a Living wage… YOUR TAX Money is paying for SNAP and Medicare for the people that have to live on minimum wage. And while your paying for it the Large Corporations are laughing at you when they pocket the obscene profits they are making.. It seems like when some people read about how Mcdonalds Triples the pay rate of their CEO to 13.8 million a year no one was concerned about how it was going to increase prices or cause unemployment. Tell me how you feel when you See a Bin inside a Wal-Mart asking for donations for their EMPLOYEES for the Holidays.. What it did to me was cause me to park the cart of Merchandise I was going to buy and left to did my shopping else where. If someone puts in 35 to 40 hours a week in a job and can’t afford to put food on the table then something is wrong with the system and if you don’t agree with that your piss poor christians

          • I thought I would not answer you any more, but I must. Asking for donations to help their employees does NOT mean they do not make enough money to feed their families. My sister lives in an upgrade senior facility and there money is collected at this time of year and the residents want to do something for the workers. Too bad you missed getting your groceries at a cheaper price for nothing. I am not Christian,(Members of my livein family are Christian and we all agree.) I am Jewish and old so I pee a lot and therefore I am not piss poor.

          • Rick Rogers: your remarks ” YOUR PAYING FOR THEM Not getting paid a Living wage… YOUR TAX Money is paying for SNAP and Medicare for the people that have to live on minimum wage” Walmart employees are paid more than the minimum wage. Most of them are part time workers, so therefore their total income is lower. It is the total time worked, that is causing their low income. I explained in an earlier post about the difference between Medicare and SNAP, SNAP IS a welfare program, Medicare is NOT. I was 30 years old in 1965 when Medicare started. I signed up for my Social Security and Medicare benefits when I was 65. I and my employers contributed to the Social Security and Medicare trust funds, that benefit me today.

          • Explain COSTCO.. They pay all their workers anywhere from 12 to 18 dollars an hour.. They give their workers Paid Vacation, Sick Time, Healthcare and Profit sharing and 401k? And Yet their prices are lower then Walmart/Sam’s Club that does not do any of those things. They also have a vastly lower turn over Rate and worker that give Great customer service to their Customers. Sorry but I think I will run my business like Costco and Not Walmart.. Oh.. and since I started this just read where Mcdonalds is raising their starting wage to 10.00 an hour. So maybe the know something we don’t know. Or maybe The COSTCO CEO KNOWS ALOT MORE THEN YOU do

          • You just answered your own questions, Rick. Competition works.

          • Competition does not work if a company turns their workers into low Level wage slaves. Their Bottom line does not Reflect Competition it Reflects they PROFIT from the lower wages they pay vs a Company like Costco that treats their employees as a Valued member of their company not someone that is interchangeable.

          • Nonsense. If there was competition, corporations couldn’t do that nor would they want to since they rely on competent workers. Monopolies are impossible without government collusion.

          • Your remark, “employees make profits”, wrong employees are necessary expenses. Customers buying the stores merchandise and investors buying shares of stock, make the profits for the company. Another wrong remark of yours is equating welfare with Medicare. Medicare is funded with employee and employer contributions during the working years of the person employed. Welfare is funded by taxpayers, through income tax deductions. Income taxes and Medicare are both deducted from the paycheck, except Medicare is set aside for your retirement years, income taxes are used to run the government, which includes welfare programs.

          • GOod Luck Selling products and Services without someone to unload the trucks.. Someone to stock the Shelves.. Some one to ring up a customer or Give a Customer Support. Don’t even Try to say employees don’t Make Profits because in every business where you hire someone to work for you that employee can make or break your company with the way they Service Customers/Clients.. When I read your comment it make me think of that idiot “Papa John” beside the fact that his pizza taste like trash he made the statement he has no obligation to share with his employees.. The ones that MAKE HIS Business.. Love to see him try and cook all those Pizza’s himself.

          • Well I guess McDonalds Got the Hint they just agree to raise their starting wage for them and their Franchises to 10 per hour as of Jan 1st.

          • $10 might be reasonable. $15 would put most out of business.

          • You ever been in a negations? You always going in asking for more then you expect.

          • I do not believe that all that were asking for $15 realized that it was ridiculous. THey are probably dumb enough to think all bosses have deep pockets and they can get what they want. A I am sure you know, many times it is better in life if God does not allow us to have what we ask for.

          • “you miss 100% of the shots you don’t take” Michael Jordan
            “IF you don’t ask you don’t get. ”
            famous quote by Mahatma Gandhi

          • Highly expect you’ve never taken a college level economic class. Learn how shit works before spouting out that whining baby nonsense. “I demand being paid 100 grand because I’m special and my momma told me so.”

          • Explain COSTCO.. They pay all their workers anywhere from 12 to 18 dollars an hour.. They give their workers Paid Vacation, Sick Time, Healthcare and Profit sharing and 401k? And Yet their prices are lower then Walmart/Sam’s Club that does not do any of those things. They also have a vastly lower turn over Rate and worker that give Great customer service to their Customers. Sorry but I think I will run my business like Costco and Not Walmart.. Oh.. and since I started this just read where Mcdonalds is raising their starting wage to 10.00 an hour. So maybe the know something we don’t know.

          • Very simple. They can afford to do so. That’s it. No big secret. Every business is different. Every business has a different business model, risk factors, profit margins,,,,etc. You can’t compare two different businesses like Walmart and Costco except in a very broad and general way.
            You need to take some courses in basic economics to understand the system before getting worked up trying to explain your simplistic beliefs.

          • Sorry but the “simplistic beliefs” are geared to try and explain things to the Average SIMPLE person that believes the crap on this website.

        • I am so happy that i had so many good people who gave me a chance to work for them. I have so many people who were glad to train me and i repaid them with the best work i could. I never asked for anything and sometimes i didn’t get any money for my work. But i learned, work hard, be on time, don’t steal, and pay attention. I never missed a day’s work in 45 years and did the best i could and learned a lot of different trades.

          • My boys delivered newspapers, my girls baby sat, then worked in fast foods at min. wage, These were NEVER intended to be full time jobs, although I do know a couple guys who worked up the ladder at McDonald’s to Managers, Wal mart has low educated people working, they barely can speak English, and if the computers in the cash registers didn’t show the change, they couldn’t figure it out. Those who are more literate are the shift mgr’s, and Dept. heads, too bad that people cannot see that you need to start in the employment world at the bottom and work your way up. I started in college and became a nurse, I worked my ay up to charge nurse before doing Pvt. duty. My kids did grunt work then found their way to the jobs they wanted, one is a Rocket Scientist, his first good job was a Computer engineer, he studied on line to get higher degrees now holds a masters, Nothing in this world is OWED to anyone, you have to get out and work for it, other than what your parents give you as a child, even then you should be taught to do chores.

          • Now these people want a day off from taking their college exams because of trauma of Ferguson,Mo. Go Figure.

          • Jeannie, they aren’t smart enough to figure it out thanks to our lack- of- education system and stupid bureaucrats.

          • Ok the Yaki534 Tell me this then.. Why Can COSTCO proved all the Benefits and programs for their Employees Included a starting wage that is anywhere from 12 to 18 dollars an hours and Still have prices lower then Wal-Mart/Sam’s Club.. IF I bought in to the Theory about “it would Raise Prices” seems LIke Costco would be much more expensive.

          • Costco is expensive’ I can’t afford to buy much there. On Social Security,I figured out what my wage would be at 40 hr.s a week,5 days a week’ It’s $3.17 an hour’ And the people that are getting $10 an hour are protesting????Most live with their parents and don’t have to rent a place to live.

          • Rick, look at the response from mthigpockets. Do you like the $1.00 menu at your favorite fast food place. Raise their and it will be the $2.00 or more menu. Who told them that a common labor job was a carer move?Go out and get a job.

          • COSTCO Chinese Off Shore Trading Company

          • Pretty clear you have not been in a Costco because your confusing it with SAM’s Club and Walmart

          • Jeanne.. You and I differ on one fact.. If I hire someone and he works for me I want to make sure if he puts in 40 hours a week he is not going to be living out of his car. Your right about people starting at the bottom. What I am saying is we need to adjust what the Bottom is because Right now a min wage who works a 40 hour week cannot afford a place to live in ANY State in the Union… We don’t seem to have a problem adjusting the High end. If Congress had to live on Min Wage for just 1 month they would be tripping over themselves trying to increase it.

          • Why do you need government’s help in setting your employees wage rates? You have no business being in business!

          • I don’t Need there Help Paul as I said I pay living wages to the people that work for me. The people that need the help are the ones that allow Companies Like McDonalds and Wal-Mart to get away with the Crap they do. And since I have been in business for 15 years please don’t feel offended if My customers and I don’t really care if you think I should be in business or not. People that I employ don’t just work for me they work with me and I Could not earn a living without their help and Support. When I profit They profit. But in the end I am the one responsible. I am not Pappa John who says he is under no obligation to Share with his Employees.. Would love to see how old Pappa John would do it he had to make all those pizzas by himself.

          • “are the ones that allow Companies Like McDonalds and Wal-Mart to get away with the Crap they do”. . .What does that even mean? Nobody should have the right to tell McDonalds, Wal-Mart, etc. how to run their businesses.

        • Golly. Guess ya just can’t fix stupid, huh? Greyfox, you besmirch the word fox. Foxes are highly intelligent which it seems you do not qualify.

          • You might be kind enough to explain why you chose to key in on my stupidity. You certainly have the right to disagree with my posts but hiding behind your judgements doesn’t give the discussion an intelligent basis. You sound like a typical liberal, dropping bombs and running away. If you disagree with someone, that’s fine. But have the courage to tell them why you disagree. I could make all sorts of smart remarks about you but that wouldn’t prove a thing, just as your remarks were of no constructive value.

        • Let’s see, the Pilgrims, USSR, China, Viet Nam, North Korea. The only ones who really seem to have understood that, were the Pilgrims. That is the true meaning of Thanksgiving.

        • Greyfox the point you miss is that while Current Min Wage may seem like a lot to someone born in the 1950’s. Its NOTHING in this Economy with prices what they are. CEO and Corporate Executive pay has go up something like 300% but the people that do the Real work have not had a raise in years. Hell even Congress gives themselves a cost of Living increase.. If the system had only kept up with the Cost of Living I think I read in Forbes a few months back the Current Min Wage would be something like 18.00 an hour. No one seems to complain about the McDonald’s CEO getting a Raise that Tripled his Salary but everyone wants to complain when the Front Line worker ask for the smallest of increases.. That Same Forbes article said something like if McDonalds Raised their min.wage to 10.00 per hour the cost of a Big Mac would go up something like 5 cents..

          • Rick, Minimum wage is never a lot and the argument of what is a decent minimum wage will rage on forever. As long as an employer can get employees at minimum wage he/she will probably do so. I don’t mean to be insensitive but you quote
            executive pay increasing 300%. Is that because he’s a nice guy or because those granting the increase believe he is worth a 300% raise? If I have an employee that’s making me

            a couple of million a year, I’ll pay him/her whatever it would take to keep him/her, but if I have to pay him/her beyond their
            worth I will let them go, that’s business. I have empathy for people who earn only minimum wage, wages are a very sensitive matter and a very complicated matter. Because you or I decide the minimum wage should be X does not really make much sense. When wages are legislated by government, business people make adjustments to keep their bottom line at an acceptable level which could mean
            any number of things, including staff reduction. If I could wave a magic wand I would set the minimum wage at 50.00 pr hour, but I think I would create more problems than the one I tried to solve. The simple expedient of raising the minimum wage would provide a temporary
            solution to an ongoing problem at best. I’m sorry I don’t have the answer, I only know it’s not simple.

          • I think the thing that ticks me off more then anything is this Spending bill that was just passed. Did any of you notice they voted themselves a 12,000 a year Raise. They just did not call it a raise they said it was a motor Vehicle Subsidy. 1000 a month for their Motor Vehicles. or to put it another 12,000 a year.. when you figure that among the 535 members of Congress your talking 6.42 Million Dollars… Or 72,000 for a One Term Senator. They vote down Cost of Living increases over and over . .But give themselves one just about every year. Then they vote on this Bit of Graft.. I am strongly liking the idea that the American People have to approve any Raise for congress in a national election. I am tired of the Foxes Raiding the Hen house.

          • In the case of politicians I agree wholeheartedly.

          • Minimum wage should be ZERO. Nobody deserves to get a dime more than the lesser of a.) what the job is worth or b.) what they are worth and that is determined by employers. If nobody will take the job, they’ll have to raise wages. If they pay too low, somebody else will offer more to get quality workers.

          • Actually it would be about $21 an hour. Do you not see how artificial minimum wage laws hold wages low?

          • Actually Paul IF there were no Minimum you would see companies LIke Wal-Mart paying their employees a whole lot less then Mimimum wage.

          • Not a problem, Rick. That’s what competition thrives on.

      • I have been working since i was 11 years old. Baling Hay for 25 Cents a day and the farmer gave us a lunch of cheese sandwich and milk. Dug Ditches for water lines and septic tanks for 5 dollars a day. So on and so on, in High School i worked for a friends father in his bakery and am a Master Baker and did that in the Navy for 4 years. If you don’t start at a low wage job, you won’t know how to do anything.

        • I made a little more than you. .05/bale, but no free lunch. At that time, I made between 50.00 and 100.00 a day, on the weekends, and a few dollars during the week, after school. Also Navy, Bubblehead.

      • If they are held in economic slavery, it is by choice. Maybe they like what they do and don’t want to go further. If that’s the case, it’s not slavery.

      • The dumbass has spoken. You are an absolute financial dud! What this increase will do is prevent unskilled, less educated workers from being hired at all. It will cause businesses to combine to or three jobs into one so that the employer can hope to get his money’s worth. It will increase costs and prices to the point that numerous businesses will simply close their doors; jobs GONE! What isn’t pointed out by this article is that with every minimum wage increase, the cost of living in that area also increases. That means all salaried workers will require increased wages by the same percentage, shipping costs will increase, rental homes will increase rent, etc., etc., etc. As an example, if I own a rental house and the minimum wage causes prices at all businesses affected by the increase to increase, that means that I must pay higher prices on all of the things that I buy, to include repair and maintenance of that rental property. it also means that the occupant of that property has likely benefitted from the increase that causes me to “suffer” from the increase, so the rent will increase to meet the loss!

        • You are all committed that that Trickle down bullshit I see.

          • It’s not bull. Capitalism is the most successful system, socialism is a proven failure. Even China has moved toward free market enterprise and it’s pulled 300 million people out of poverty. Of source, the knuckle head in the Whitehouse is dragging us in the other direction.

          • Capitalism is the Unknown ideal. The U.S. has always been a mixed economy, that is why we have tariffs. Do you think it was a good thing to bail out the auto industry with MY MONEY? If the Government had instead cut each and every taxpayer a check, given us back some of our hard earned money, we could have saved those companies that we support, and let the other ones go. It was only a payback to the UAW, who supported the Democrats. The people who had invested money into those companies took it up the a$$.

      • Not true. I earned min wage and placed myself through college and had it all paid off at graduation. I went on to earn a Master’s degree then a Ph.D. I earned a cap of $130k/yr. before succumbing to military injuries. I cooked meals on a burner plate, coffee pot, and a toaster. I rode a motorcycle all year round in PA. It was inexpensive and insurance was $12 a month. I budgeted everything so I knew if I could splurge and buy a subway sandwich. I scrounged the tail of the aircraft C-130 for box lunches the other crew members tossed. I used that for the rest of the week. You get creative when you have a goal. These individuals are pampered. They want $7 cups of coffee, designer jeans, latest cell phones, tablets, and so forth. I had a typewriter which made me the envy of the floor. A lot students had grants or parents that paid for their education. I didn’t have that. I persevered to get my education and good jobs. I now sit in a 4,217sqft home with 4 vehicles, 3 motorcycles, and a plane. Kids today see that and want it but don’t want to go through the hard work to get it. “It’s too hard.” “That’s not me.” “I deserve better.” The excuses are endless. So no tears here.

        • NO FREE LUNCH

          My grandfather came off the boat from Italy with nothing. By the end of his 85 years he had a house and 2 fishing boats built, sent his kids through private schools and owed NO ONE a dime!! HE worked hard and loved this country. He had pride.

          I worked all the way through college and grad school while working low wage jobs. I slept on floors, in my car, ate whatever I could find, and some days worked or attended school around the clock on very little sleep. I did this in my late 30s. didn’t have any help. Hard work pays off! I earned BA degrees and a masters, eventually attended med school and then crossed over to be a Dr. of Physical Therapy. Life is good now but it took 15 years of hard work to get here.

          Don’t come to my country with your hand out! No tears from me. I advocate for military on the boarder with shoot to kill orders = instant halt to most of illegal immigration.

        • Thank you for your service.

      • Chester, get off your butt. Get a job, any job and show up daily giving 100% for your employer. You will be rewarded sooner or later. I worked my way up from the bottom wage jobs twice during my life. If I can do it twice you should be able to do it once. The world doesn’t owe you a living. Go get it for yourself.

        • Thanks for the tip but I’ve been working all my life and am retired now. Thank you for taking an interest in how I’m doing.

      • So what your saying is the rest are rather lazy dead beats whom would rather party then work. True.

      • I saw your comment elsewhere. It still isn’t true. If the rest are being held in economic slavery it’s because they belong there. They are the ones who don’t want to better themselves, don’t want to learn new skills, don’t want to work harder or smarter, or just don’t have the ability to educate themselves. Sorry but companies don’t have to pay people exorbitant wages just because they can’t function at higher levels. These people don’t deserve multiple cars, expensive homes, and luxurious vacations. If they can’t climb the corporate ladder then a meager existence is what they get out of life. Life isn’t easy. If they create a product and sell it for billions then fantastic but until that happens they need to work for everything. We all did. Giving them raises comparable to college degree recipients is not fair to hard workers or those that work to educate themselves.

  4. The government is the one who profits off of minimum wage increases. If a person makes one dollar and is taxed 20% he pays 20 cents in taxes. The government spends 40 cents on that dollar causing a budget deficit. So if they increase the persons income by $1 they now receive 40 cents for the persons wage of $2. Wealth has not been created, only inflation occurs. The businesses must now increase their prices to pay the $2 wage thus their taxes go up. So the government thrives on inflation to increase its revenue. The only problem is that as they increase their revenue they continue to increase their spending instead of paying off their bills. Bear in mind the figures I used are fictional but easy to illustrate with. The wage increase gives the illusion to the minimum wage earner that he is now making more money. In the short term he has more spending power. But the price of his rent will go up as well as the prices of the goods and services he uses so soon the $2 buys what the $1 used to buy. Business and property owners also profit off of some inflation. How? If you build a business or buy property and the prices of your goods and services goes up over the years, you still have the same mortgage bill that you had from the beginning but now you make an inflated income and its easier to pay the old bill off. And of course the property value increases. Of course it costs more if you want to purchase more property or expand your business.

  5. Actually there is a silver lining. The memo that one is paid according to the value of the work is very important to learn. The more unskilled who determine to get themselves skilled is a long term benefit.

  6. While I believe that an increase in minimum wage can lead to a rise in unemployment, it is not proven by this article.
    Formally described as-
    Correlation proves causation (cum hoc ergo propter hoc) – a faulty assumption that correlation between two variables implies that one causes the other.

    OR BY

    Post hoc ergo propter hoc (Latin: “after this, therefore because of this”) is a logical fallacy (of the questionable cause variety) that states “Since event Y followed event X, event Y must have been caused by event X.” It is often shortened to simply post hoc fallacy. It is subtly different from the fallacy cum hoc ergo propter hoc
    (“with this, therefore because of this”), in which two things or events
    occur simultaneously or the chronological ordering is insignificant or
    unknown. Post hoc is a particularly tempting error because temporal sequence appears to be integral to causality. The fallacy lies in coming to a conclusion based solely on the order of events, rather than taking into account other factors that might rule out the connection.

    This does not mean that the presumptive statement is wrong. It does mean that it is not proven by the argument in the article.

    • Forget the latin and start a business and then tell us what it’s all about. You sound like an intellectual liberal PHD. Book larnin smarts, no real world experience.

      • Greyfox – You have missed it again. I have started a business. I am far from a liberal. I am a conservative but not ultra conservative. I tend towards moderation but remain right of center. Did you miss the part where I BELIEVE THAT RAISING MINIMUM WAGE WILL RESULT IN LOSS OF JOBS?
        My point is that this article does NOT prove this point and that using flawed logic tin an attempt to prove a point only hurts that position.

        The fallacies mentioned in my post do not require a higher levels of education to understand. Common sense will tell anyone that the use of umbrellas does not cause it to rain just because rain and umbrella use occur at the same time.

  7. Well duh? I watched this happen in1964(?) when theydidthe first income boost. Ihad a friend whomanaged a 5-10 ( remember those) who employed severa; e;der;y ladies when the ncrease hit, he had tolayoff 2 of the 6 or 8 ladies working there. so, thesepaople lost emplyment and the economy suffered. Bog deal,huh?

  8. They made a mistake on the title.. it should Read Higher Minimum Wage Leads to Lower Unemployment. Since Trickle down is a farce give Trickle UP a chance.. If I were living paycheck to paycheck and working for Minimum what I sure as hell would be spending that Difference every Week on the Basics.. Food, Utilities, Rent.. Not pulling a Mitt Romney and Stuffing it in a bank in the Caymans. Just about every company large or small that does business thru goods or Services with the public requires the public to spend money. They can not Spend what they don’t have.

    • . More kook-aid for you ????????

      • Actually pretty common sense. You want to have business increase sales.. Pay the little guy on the pay scale more.. HE WILL SPEND IT.. NOT HOARD It. If he spends it then they company he spends it with will have more .. and he can spend it on his Suppliers.. of course good luck increasing the economy when the low guy on the pay scale has nothing and will spend nothing.. Except what he takes out of government programs.. That EVERYONE PAYS FOR.. Sorry to me.. I would rather have the companies pay it instead of it coming out of my taxes. OR DO YOU LIKE THE Robber Barons of the 21st Century. BECAUSE They sure as hell don’t care about you.

        • You know what the job pays when you walk in the door !!
          If you can’t afford to pay rent or keep your family on that, MOVE ON!

          Don’t expect the Consumer to put Your kid thru College !!!

          • You Mac Boy you have me Confused.. Just a few weeks ago you were complaining about all the people that were on unemployment and that there were help wanted Signs at just about every fast food joint in your town.. So if they listen to you and take one of those jobs They have to work for the Slave wages being paid while the Big companies get rich off of the work they do. Sorry did not realize you were part of the Pro Slavery Movement. And again you miss the point. If they don’t get paid a living wage YOUR PAYING FOR IT out of your Tax Dollars. to make sure their kids get feed with SNAP and Covered by Medicare. While those companies work to avoid paying taxes.. (Burger King moving to Canada).. It must have made some sense because Mcdonalds just announced after the first of the year their starting wage is going up to over 10.00 per hour. That’s a start

  9. Well, when are these people going to stop this? They were told that, if you increase the wages, you will loose jobs. These people will not listen and the Democrats are doing the wage earners a disservice. Increase The Wage, Loose Jobs. Even I know that.

  10. Very good article. How is it that these boneheads need a study to prove what anybody with half a brain already knows? Gas jockeys, waitresses, burger flippers, etc. are entry level jobs, not careers. Without entry level jobs teenagers haven’t got a chance to learn a good work ethnic.

  11. Minimum wage is a training wage, not a support your family wage. Maybe if all these people who rely on minimum wage had paid attention in school, or had just a little drive to better themselves they would not need to rely on it. Maybe getting high and playing XBox wasn’t such a great idea. Who cares if you can’t speak English, or read, or do basic math, the US government has your back! We have a check with your name on it. All you people making $50k and up get to work!! 46 million people need their food stamps!

  12. Worked for $3 an hour as a teenager. $5.25 at McDonald’s in H.S. $12k a year at a bank after High School. College years, I flew Tactical Aerovac. Went to classes during the day and flew at night and weekends at $350/mo. Graduated and flew F-16 and ground operations $48k. Gained a Master’s degree and went to earn $130k/yr. Finished out with a Ph.D. but unfortunately my military injuries caught up to me. I’m done. Point is I started at minimum wage but I got a B.A. while working a low paying job. Work hard and save. I didn’t party, smoke, drink, or do drugs. I paid for my education through sweat, determination, and sacrifice. I made it. I’m well educated and was a contributor to society. It’s disheartening to see all these young people demanding more pay. What they are getting now is about double what I received. Yes, expenses are higher but not out of reach. I’m sure everyone of them could get by with no smoking, drinking, drugs, cable TV, cell phone costs, or expensive clothes. I drove a motorcycle all year round even in the winter. If you saw a motorcyclist driving through blizzards in PA from ’80-86 that was me. Anyone can do it. Just save, work hard, and study.

  13. Congrats freind: You are the exception to the rule. Being in bussiness for most of my life I always tried to take care of the people that made me successful. Abuse of people to make yourself viable is not the way to go. If the only way you can make it is by trying to get people to work for you for the absolute minimum then maybe you have to examine what it is you are trying to acheive. People will work for you if the expectation is of better times ahead, drive up in a new Cadillac and the minimum wagers will wonder where the benefit and future is for them. Share it if you’ve got it!

  14. Where’s the link to the report? sheesh.

  15. You don’t need a study for this obvious revelation. If the cost per employee goes up, then the number of employees will go down.

  16. Ok.. There are some very well spoken people on this thread that are trying to have valid discussions. So let me ask you this. If you want Government to stay out of Business if you want Unions to stay out of business then Tell me what is your answer to the Companies that Exploit their Employees. This is a Republic but Corporations with nothing to keep them in check turns it into an Oligarchy. Here is one thing none of you can argue with.. Companies exist to make money. Their bottom like is their Holy Grail.. So who protects the average worker from the company that cuts corners and endangers them. Or works them long hours with little compensation. The way we have things now The Members of Congress are up for sale and we have the Foxes watching the Hen house.

  17. Working in Retail,when min wage was to go up, a couple months before,we’d start raising prices . The employer has to charge more to pay the increase. All goods that you need go up in price. Also,the Govt. takes more out of your paycheck. The people that flip bugers and want $15 a Hour. won’t end up with much of a raise’

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