Seattle employment has cratered thanks to the $15 per hour minimum wage goal set by the City Council. Going in the face of the advise of economists, the city forged ahead with their program. It is only this policy that is to blame. Just outside the city limits, the job market is great and growing. Inside the city limits, eh, not so much. But they feel good in the city council meetings. Read all the facts in this fine article.
AS WRITTEN BY JAZZ SHAW for Hot Air:
Fight for 15 update: Seattle employment craters:
Science! (Is economics really a science? I’ve long felt it should be taught alongside astrology or some related field.) In any event, the continent sized Petri dish which is the American jobs market has been the subject of much speculation since the Fight for Fifteen muscled its way into the presidential campaign debate. It’s a very populist position which the Democrats have been riding like rocket. At the same time, people who actually study such matters have been warning that it would backfire spectacularly, particularly if it was implemented in a rush. Job availability is subject to the same laws of supply and demand as anything else, and jacking up wages almost always has to result in fewer jobs. Last year I published a piece which summarized the findings of a number of analysts who had come to that conclusion and drew considerable flack for it.
Liberals weren’t interested, however. Even the Obama administration had the Department of Labor publish some “myth busters” on the subject, assuring all the citizens that everything would be just fine and everyone would get a pony.
Myth: Increasing the minimum wage will cause people to lose their jobs.
Not true: In a letter to President Obama and congressional leaders urging a minimum wage increase, more than 600 economists, including 7 Nobel Prize winners wrote, “In recent years there have been important developments in the academic literature on the effect of increases in the minimum wage on employment, with the weight of evidence now showing that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers, even during times of weakness in the labor market. Research suggests that a minimum-wage increase could have a small stimulative effect on the economy as low-wage workers spend their additional earnings, raising demand and job growth, and providing some help on the jobs front.”