The minimum wage was raised in 20 states on January 1. President Obama is calling for an increase in the federal minimum wage from $7.25 per hour to something in the $10-15 range.<\/p>\n
The mainstream press continues to clamor for more increases as well. A recent Washington Post<\/em> article is one such example. In it, Danielle Paquette argues, \u201cEconomically,\u00a0the verdict is mixed on minimum wage: Supporters paint the raises as an economic stimulus, a way to reduce poverty; detractors worry budget-strained employers will be forced to cut jobs.\u201d This is a perfect example of economic ignorance.<\/p>\n http:\/\/www.washingtonpost.com\/news\/storyline\/wp\/2015\/01\/05\/20-states-just-raised-the-minimum-wage-it-wasnt-enough\/<\/p>\n Whatever you think about the minimum wage, the economic argument is clear and Paquette is dead wrong by suggesting that there\u2019s an ongoing debate. It can\u2019t be a stimulus because\u2014even if it resulted in no job losses\u2014it simply takes money that would have been spent by one group of individuals and give it to another group.\u00a0 In this respect, it\u2019s a wash at best. It\u2019s an obvious job killer as well. Common sense should tell you that companies required to pay workers more won\u2019t be able to afford as many employees. It\u2019s true that companies typically pass part of the increased costs along to customers, but the overall effect has to involve some number of lost jobs. This is not a debatable point. It\u2019s economic reality.<\/p>\n