Seattle’s Minimum-wage Increases Cost Low-wage Workers $125 a Month

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The New American: A study commissioned by Seattle’s city council just came back with results they didn’t want to hear: Their efforts to raise wages of the city’s lowest-paid workers are instead costing them about $125 a month. This is thanks to their employers cutting their hours in response to the law raising the minimum wage from $10.50 an hour to $13 an hour in 2016.

Mark Long, one of the authors of the University of Washington (UW) study, said:

If you’re a low-skilled worker with one of these jobs, $125 a month is a sizeable amount of money. It can be the difference between being able to pay your rent and not being able to pay your rent.

In addition, the UW study concluded that, thanks to the minimum-wage increase, some 5,000 low wage jobs in Seattle were never created. more …

Opinion: This is how academics and liberal progressives help the poor – they get them fired.

In 2014, President Barack Obama announced a plan to raise the federal minimum wage to $10.10 an hour despite the Congressional Budget Office estimate that it would eliminate as many as 1 million jobs by late 2016.

It had to happen. When people who have never run a business or invested their own capital in starting a business, try to tell actual businesses owners how to pay their employees, it is a disaster.

Either a reduction of hours or replacing the low-skilled employee with a machine is the result.

Amazon’s recent announcement of purchasing Whole Foods is a case in point. Amazon is not spending 13.9 billion to raise the pay of thousands of low-skilled warehouse workers, cashiers, etc. Amazon plans to automate those position with robots (here).

Ronald Reagan’s famous quote still fits.

1 COMMENT

  1. This story reminds me of the 2000 Florida High Speed Corridor referendum. Voters were told if they voted “Yes” on the referendum, they could have a really fast train connecting various cities in the state. Who doesn’t love trains and fast ones at that!

    So off to the voting booths they went to get their train: https://youtu.be/UNTsbZCj7H4.

    After the referendum passed and the voters came down from their locomotive high, they became horrified when they soon learned of the enormous cost.

    So off the voting booths they went in 2004 to pass yet another referendum repealing their once beloved super fast train: https://youtu.be/UNTsbZCj7H4.

    I wonder if the hippies of Washington State will do the same thing.

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