Within just a few years, the concept of a $15 minimum wage went from being unthinkable, to a reality for a handful of cities.
Thanks to the union-backed Fight for Fifteen, the state governments in California, New York, the District of Columbia have all signed legislation that would raise their minimum wages to $15. Dozens of cities across the nation have done the same. Seattle is the most notable of the cities that has raised the minimum wage to $15, as a study was commissioned on the effects of the law showed that it led to a lowering of the average take-home pay for low-skilled workers.
In fact, that study, commissioned by the University of Washington, found that the average low-wage employee enjoyed $54 per month in higher earnings due to the $3.53 per hour increase associated with the second phase of Seattle’s minimum wage ordinance – but overall Seattle’s low-wage workers lost $179 a month on average due to job losses and reductions in hours worked. That amounts to $1,500 a year.
And things are just going to get worse once the final $2 hike goes into effect. Of course, we won’t hear about it because Seattle’s city government fired all the researchers involved in the study.
Anyone in the business community can tell you the disastrous effects that a hike in the minimum wage causes for businesses that operate with razor thin margins. Among them is Andy Puzder, the former CEO of CKE Restaurants, which is the parent company of burger chains Hardee’s and Carl’s Jr. Those in the fast food industry are among the businesses who suffer the most from minimum wage hikes – which Puzder himself can attest to:
At one point, President Trump was considering Puzder for a Cabinet position. He has since dropped out, but Puzder would have made a great Labor Secretary.
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