Increased Minimum Wage Means Increased Unemployment

I have discussed the minimum wage and why increasing it would be a bad idea. I even cited the studies showing that in states where the minimum wage has been increased above the federal minimum there have been layoffs and fewer people being hired. When this issue was discussed in the past I talked about how employers would reduce workforce in order to keep payroll in line and in order to keep costs down. I spoke about many of these things and so much more here at my site and on my radio program. It would appear that the media is confirming that once again, the Big Dog is always right.

AZ Central is reporting that teens are losing their part time jobs or their hours are being cut in order to keep payroll costs down. As I discussed many times, companies are now more reluctant to hire unskilled or untrained workers because it costs them more to train them and to pay them.

Some Valley employers, especially those in the food industry, say payroll budgets have risen so much that they’re cutting hours, instituting hiring freezes and laying off employees.

And teens are among the first workers to go.

Companies maintain the new wage was raised to $6.75 per hour from $5.15 per hour to help the breadwinners in working-poor families. Teens typically have other means of support.

Mark Messner, owner of Pepi’s Pizza in south Phoenix, estimates he has employed more than 2,000 high school students since 1990. But he plans to lay off three teenage workers and decrease hours worked by others. Of his 25-person workforce, roughly 75 percent are in high school.

“I’ve had to go to some of my kids and say, ‘Look, my payroll just increased 13 percent,’ ” he said. ” ‘Sorry, I don’t have any hours for you.’ “AZ Central

We will see much more of this as the new federal minimum wage increases and more businesses, especially small ones, are squeezed. There will be fewer workers hired and more laid off. This will raise the unemployment rate and hurt the economy. The law of unintended consequences will hurt the average worker, those the Democrats so desperately wanted to help (except those working for a tuna company in Nancy Pelosi’s district who was exempted by her).

The real fun will be watching as the Democrats, who pushed this increase through entirely on their own, try to find someone to blame. When they were the minority they pointed to the right but now they are in the majority so all fingers point to them. In reality it will be entirely their faults but you can bet, and I know in my military mind that they will blame George Bush. Of course, I will place some of the blame on him as well. If it is enacted it is because he signed it instead of vetoing it.

Big Dog Salute to Ms. Underestimated

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One Response to “Increased Minimum Wage Means Increased Unemployment”

  1. […] “I’ve had to go to some of my kids and say, ‘Look, my payroll just increased 13 percent,’ ” he said. ” ‘Sorry, I don’t have any hours for you.’ “AZ Central […]