fbpx

Latest Posts

Home

Facebook

Twitter

Search
About

Five of eight Minnesota Reps. voted to hike the minimum wage to $15 and destroy 1.3 million jobs

Last week, Minnesota Representatives Angie Craig (DFL-Eagan), Dean Phillips (D-Eden Prairie), Betty McCollum (DFL-Saint Paul), Ilhan Omar (DFL-Minneapolis), and Collin Peterson (DFL-Moorhead), voted Aye to the Raise the Wage Act. This would raise the federal minimum wage to $15 an hour by 2025.

But, while that might be the law’s intention, that does not mean that it will be the law’s consequence.

Recently, the Congressional Budget Office released a study titled ‘The Effects on Employment and Family Income of Increasing the Federal Minimum Wage‘. As economist Michael Saltsman of the Employment Policies Institute explains in the Wall Street Journal,

The Raise the Wage Act of 2019, introduced in January, would set a $15 minimum wage by 2024. The trade-offs from this legislation are even worse than in 2014. CBO finds a $15 minimum wage would pull 1.3 million workers out of poverty at the cost of 1.3 million jobs in the median scenario, and 3.7 million jobs in the worst-case scenario.

Put differently, as many as three people would lose their jobs for each person no longer in poverty.

The CBO’s conclusions, based on a review of dozens of empirical studies, even suggest the title of the Democrats’ bill is a misnomer. The Raise the Wage Act would reduce real family income by $9 billion once phased in, as reductions in employment (among other impacts) offset the increase in some workers’ pay.

It is amazing how wedded some people are to the idea that just because government has commanded that people will be paid more, it will happen. In spite of the balance of evidence, we still see nonsense like this

When the House does approve the increase, everyone in Minnesota making minimum wage will get an extra $5.14 an hour added to their check.

No, they won’t. As I’ve written before, we must judge public policies by their effects, not their intentions.

John Phelan is an economist at the Center of the American Experiment. 

Comments

Subscribe

Categories

Upcoming Events

  • Lunch Forum with Amity Shlaes

    Location: Hyatt Regency Minneapolis 1300 Nicollet Mall Minneapolis, MN 55403

    Buy tickets HERE. About This Event: Enjoy our Early Bird Ticket Special through February 23rd! After this date, ticket price will increase to $30. Doors open at 11:30 AM, program and lunch begin at Noon. In Great Society, the New York Times bestselling author of The Forgotten Man and Coolidgeoffers a stunning revision of our last great period of idealism, the 1960s, with burning relevance for our contemporary challenges. Today, a battle rages in our country. Many Americans are attracted to socialism and economic redistribution while opponents of those ideas argue for purer capitalism. In the 1960s, Americans sought the…

    Register Now
  • Morning in Minnesota Breakfast Series: Moorhead

    Location: Moorhead Country Club 2101 North River Drive, Moorhead, MN, 56560

    Join Center of the American Experiment Friday, February 21 at the Moorhead Country Club for a FREE breakfast with policy fellow Isaac Orr.

    Register Now
  • 2020 Annual Dinner Featuring Sarah Huckabee Sanders

    Location: Minneapolis Convention Center Ballroom 1301 2nd Ave S Minneapolis, MN 55403

    American President: The Unorthodox Approach to Politics that Changed the World. Sarah Huckabee Sanders served as White House Press Secretary for President Donald J. Trump from 2017 to 2019. A trusted confidant of the President, Sanders advised him on everything from press and communications strategy to personnel and policy. For two and a half years, Sanders was at the President’s side, battling with the media, working with lawmakers and CEOs, and staffing the President on every foreign trip, including dozens of meetings with foreign leaders. Sanders is only the third woman and the first mother to hold the job of…

    Register Now