1.4 million jobs lost due to hikes in minimum wage...

[healthmyths]

Hikes in the minimum wage have other effects besides just giving low-income workers a raise. Important new research suggests that minimum wage increases in the late 2000s resulted in the loss of some 1.4 million American jobs and hurt unskilled workers most of all.

A new study http://econweb.ucsd.edu/~mwither/pdfs/Effects of Min Wage on Wages Employment and Earnings.pdf

by researchers Jeffrey Clemens and Michael Wither from the University of California San Diego found that low-skilled workers were the most adversely affected by minimum wage increases, despite the fact that this was the group that such legislation sought to help.

The study shows that between July 23, 2007 and July 24, 2009, the federal minimum wage rose from $5.15 to $7.25 per hour. During this period, the employment-to-population ratio declined substantially—by 4 percentage points among adults aged 25 to 54, and by 8 percentage points among those aged 15 to 24.

Up to now, economists have disagreed as to the part that the federal minimum wage increases played in unemployment, but the new methodology employed carefully delineated control groups to isolate the variable of minimum wage in order to determine its precise effects.

The study also found that “binding minimum wage increases significantly reduced the likelihood that low-skilled workers rose to what we characterize as lower middle class earnings.”

http://econweb.ucsd.edu/~mwither/pdfs/Effects of Min Wage on Wages Employment and Earnings.pdf

 

[JakeStarkey]

healthmyths once again forgets inconvenient facts.

The losses were at the height of the recession.

The losses in jobs have been recouped.

The above is why we laugh at healthmyths.

 

[Dont Taz Me Bro]

healthmyths once again forgets inconvenient facts.

The losses were at the height of the recession.

The losses in jobs have been recouped.

The above is why we laugh at healthmyths.

It may be true or it may not be. I assume you can provide evidence to refute it if that's the case?

 

[JakeStarkey]

healthmyths once again forgets inconvenient facts.

The losses were at the height of the recession.

The losses in jobs have been recouped.

The above is why we laugh at healthmyths.

It may be true or it may not be. I assume you can provide evidence to refute it if that's the case?

You can't prove differently, so considering it's me with you and healthmyths on the other side, I am quite comfortable with my opinion.

HealthMyths fails to complete the analysis be ignoring the history after 2009: very unprofessional. That's why he fails.

 

[healthmyths]

healthmyths once again forgets inconvenient facts.

The losses were at the height of the recession.

The losses in jobs have been recouped.

The above is why we laugh at healthmyths.

I didn't forget. I'm simply sharing what the experts are stating...
PLUS YOU are forgetting several MAJOR events that ALSO occurred during that time that affected job losses BUT YOU won't admit they happened
because Bush was the president during a period when the following gigantic cataclysmic events occurred that have never occurred all during one president's administration!
REMEMBER THESE EVENTS???
A) Dot.com bust the bubble started under Clinton... $5 trillion in market value WIPED out... 400,000 jobs GONE
B) The 9/11 Recession: (March 2001 - November 2001)

• Duration: 8 months
• Magnitude
  • GDP Decline: 0.3
  • Unemployment Rate: 5.5%
• Reasons and Causes: The collapse of the dotcom bubble, the 9/11 attacks and a series of accounting scandals at major U.S. corporations contributed to this relatively mild contraction of the U.S. economy. In the next few months, GDP recovered to its former level. (For more information, readCrashes: The Dotcom Crash.)

C) 9/11 started under Clinton with the Gorelick Memo that forbid CIA from sharing with FBI the bombers existence.. cost $2 trillion 150,000 jobs in NYC!
D) Worst hurricanes in history cost $1 trillion 400,000 jobs lost...

But YOU won't admit that these events occurred!

 

[JakeStarkey]

Blah blah blah. Stay on track.

Were the losses because of the wage increase or because of the recession?

Were the jobs replaced?

Were the jobs increased in number?

My only point is that you never give a complete analysis, healthmyths. You are not a critical thinker, merely a

for an unpopular philsophy.

 

[hadit]

MW increases raise the COST of a job to an employer, but they don't raise the VALUE of that job. Raise an employer's labor costs, and several things are likely to happen.

1. The employer will reduce his labor costs by cutting hours and/or laying off workers.
2. The employer will reduce his labor costs by cutting benefits.
3. The employer will reduce his labor costs by outsourcing or automating tasks that just are not worth the higher cost. Expect to see automation wiping out many fast food jobs in the years to come. There really is no need today for 4 or 5 MW workers taking orders and payments, nor is there a need for 2 or 3 to be flipping burgers. Those tasks can be done faster, better, and more reliably by kiosks and machines. Expect the kids of the future to stare dumbly at you when you talk about seeing a dozen people working in a McDonald's.
4. The employer will increase his revenue by raising prices.

What will NOT happen is the employer seeing his labor costs go up by 20% and doing nothing.

 

[Coloradomtnman]

This study is potentially devastating to liberals, and I am a liberal. Has this been peer-reviewed and published? I am not an economist nor talented at math, and the methods used in the study to isolate for direct factors of minimum wage increases and the control group were difficult for me to grasp with my limited education in the field. But if this study is verified and accurate, then we liberals will need to determine new methods for expanding prosperity to the lower and middle classes.

 

[Siete]

Important new research suggests


I suggest someone is full of shit.

 

[healthmyths]

This study is potentially devastating to liberals, and I am a liberal. Has this been peer-reviewed and published? I am not an economist nor talented at math, and the methods used in the study to isolate for direct factors of minimum wage increases and the control group were difficult for me to grasp with my limited education in the field. But if this study is verified and accurate, then we liberals will need to determine new methods for expanding prosperity to the lower and middle classes.

Part of the problem that people that haven't any experiences running businesses is that many don't know that the employer matches the employee's
contributions to Medicare/SS. In other words the employee's pay has 6.2% for SS and 1.45% for Medicare deducted. The employer also pays on the employee's pay 6.2% for SS and 1.45% for Medicare. So when the minimum wage goes up it is NOT only the wage that the employer pays but also 7.65% on top of that. So many small businesses that are entry level wage workers have to consider that when a jump from $7.25 to $15.00
means it is not only a pay increase of $7.75 but also another $.59/hour on top for SS/Medicare.
With say 20 employees at $7.75 minimum goes to $15.00 the employer has to make up from somewhere nearly $6,200 more a week plus SS/Medicare.

 

[rightwinger]

So minimum wage jobs were lost during the Bush Recession

healthmyth blames the minimum wage. If so, why did those jobs return?

 

[LogikAndReazon]

No business would cut back on employees or increase prices to compensate for one of their most costly expenses.... None
Apologies...to clarify i meant the govt wouldnt cut back , just raise taxes.

 

[Dont Taz Me Bro]

You can't prove differently

I don't have to. It's not up to me to prove a negative. You're the one who said he was lying. Either put up or shut up.

 

[Claudette]

Its not rocket science folks.

If the minimum wage goes up loads of folks just won't hire.

Oh some will but I'd bet most won't and those working for them will be doing double duty.